Global chemical supremacy Dow DuPont officially separated, transformed into the three giants!

June 3 (EST), DuPont announced its new status as an independent company as the agricultural sector was successfully spun off from the former Dow DuPont and separated into Cody Huaas an innovation provider, DuPont brings innovation to all walks of life and people's daily lives with specialized value-added solutionsDuPont's common stock begins regular trading on the New York Stock Exchange (NYSE) on the same day, under the ticker symbol "DD"this means that Dow DuPont, the world's largest chemical company, is officially separated, which is also likely to represent a shift in the global chemical industry landscape and trends!early April, Dow split its independence from the Dow DuPont consortium, and in June, Cody Hua and DuPont announced separate splitsthe former Dow Agriculture Department will form a new agricultural company with DuPont Agriculture, which will be named "Kodihua";Dow's division in addition to agricultural and electronic materials and DuPont Functional Materials, andand Dow's electronic materials will be integrated into the new (DuPont) specialty products division in DuPont's division sonafters, in addition to agricultural and functional materialsthis, the former chemical overlord Dow DuPont officially separated! The formation of the new Big Three!the split is characterized mainly by the relative retention of some of the best of the two companies, while combining the two companies' persistent losses but highly complementary agricultural sectors, creating a world-class agrochemical company, with Monsanto and SyngentaThis, on the one hand, solves the losses of the two companies' agricultural business, but also facilitates the integration of the two companies' business, resource replacementmerger is a strong combination, spin-off is focused on the competitiveness of the industrial chain!calculated that the merger would initially generate a cost synergy effect of about $3 billion, specifically in terms of research and development, the two companies' research and development platforms could work together to better achieve cost savings and product replacements, resulting in better potential growth, and that the materials business area, where the two parties will achieve cost control due to scale effects in raw materials, research and development and productionThese are all greater savings than their respective operations, which is economies of scaleFrom a broad-view economic perspective, the DuPont Dow merger would create a $1 billion growth synergyBoth companies will re-adjust their business segments for some time to come, with some of their fast-growing business units focused on developmentIt is precisely because the merger will allow the two companies to diversify the different business specialization restructuring, can strengthen the strength, conducive to more occupation of the market take the example of New Dow: Jim Fitterling, global CEO of Dow Chemical, , says that in the next few years, new Dow's capital project spending will shrink from $4 billion a year, a 30 percent drop, thanks to two of its large upstream chemical projects in the Us Gulf of Mexico and Saudi Arabia, which were fully completed last year Dow will focus more on investments downstream of the industry chain in the future, and 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 cars, mobile phones and skin care products strategy will also be applied in China, where New Dow is building a new silicone resin plant in Zhangjiagang, Jiangsu Province, which could be used as a raw material for beauty, care and other products, which will start production in 2021 the agricultural sector is stripped away, the new Dow will therefore not have to bear the high cost of research and development Of the $1.7 billion in research and development that Dow originally spent each year, $700 million was spent on the agricultural sector, and research and development of chemical materials cost about $900 million according to the plan, new Dow's annual research and development expenses as a percentage of operating income will not be higher than 2%, down from the previous 2.9% If you calculate $50 billion in revenue, there will be $1 billion in research and development of chemical materials, which is not as bad as it used to be, Mr Fitlin said