Dow DuPont, the global chemical overlord, officially separated and became the three giants!

On June 3 (Eastern time), DuPont announced that with the successful separation of the agricultural sector from the original Dow DuPont company to cordeward company, DuPont company made a new appearance as an independent company As an innovation provider, DuPont brings innovation to all walks of life and people's daily life with professional value-added solutions DuPont's common stock began regular trading on the same day on the New York Stock Exchange (NYSE), with the stock code "DD" This means that Dow DuPont, the world's largest chemical enterprise, officially separated, which is also likely to represent the change of global chemical industry pattern and development trend! As early as the beginning of April this year, Dow split up from the Dow DuPont Consortium for independence In June, cordiva and DuPont also announced their split independence The former Dow agricultural department will form a new agricultural company with DuPont agricultural department, which will be named after "cordihua"; Dow's department other than agricultural and electronic materials will form a new (Dow) material science company with DuPont functional materials department; and Dow's electronic materials will integrate with DuPont's department other than agricultural and functional materials to form a new (DuPont) special products department So far, Dow DuPont, the former chemical overlord, officially separated! The formation of the new three giants! The main features of the split are: on the one hand, the best parts of the two companies are kept relatively, while the two companies continue to lose money but have a strong complementary agricultural sector together, which has created one of the world's top agricultural and chemical enterprises, competing with Monsanto and Syngenta On the one hand, the move solved the loss of agricultural business of the two companies, and on the other hand, it was conducive to business integration and resource replacement of the two companies Merger is a combination of the strong and the separation is to focus on the competitiveness of the industrial chain! It has been calculated that the merger will first produce a cost synergy effect of about 3 billion US dollars Specifically, in terms of R & D, the cooperation between the two companies' R & D platforms can better realize cost saving and product upgrading, so as to obtain better potential growth In the field of materials business, both parties will achieve cost control in terms of raw materials, R & D and production due to scale effect These are greater savings than their respective operations, which is scale economy From the perspective of scope economy, DuPont Dow merger will bring about a billion dollar growth synergy In the future, both companies will readjust their business sectors, and some of the fast-growing business departments will be focused on development It is precisely because the merger will enable the two companies to separate different business specialization reorganization, which can enhance their strength and help them occupy more market Take new Dow for example: Jim fittering, Global CEO of Dow Chemical, said: in the next few years, new Dow's capital project spending will be reduced from the previous $4 billion per year to $2.8 billion, a decrease of 30%, because its two large upstream chemical projects in the US Gulf of Mexico and Saudi Arabia were completed and put into production last year In the future, Dow will focus more on investment downstream of the industrial chain The basic materials produced by two large chemical projects in the United States and Saudi Arabia will be converted into higher value products for manufacturers of end consumer goods such as automobiles, mobile phones and skin care products This strategy will also be applied in China New Dow is building a new silicone resin factory in Zhangjiagang City, Jiangsu Province, which can be used as raw materials for products such as beauty and nursing It will be put into production in 2021 After the separation of the agricultural and chemical sectors, new Dow will not have to bear the high R & D expenditure Of the $1.7 billion spent by Dow on R & D, about $700 million is spent on agriculture, and about $900 million is spent on chemical materials According to the plan, the annual R & D expenses of new Dow will not account for more than 2% of operating revenue, lower than the previous 2.9% Mr fitlin said $1bn would be spent on research and development of chemical materials in terms of revenue of $50bn, a figure no less than in the past.