DuPont mulling sale of performance chemicals unit
DuPont Co. said it's considering a spinoff or sale of its performance chemicals unit, which makes titanium dioxide (Ti02) pigment and Teflon coatings.
DuPont Co. said it’s considering a spinoff or sale of its performance chemicals unit, which makes titanium dioxide (Ti02) pigment and Teflon coatings.
Wilmington, Del.-based DuPont, the biggest U.S. chemical maker by market value, will also consider different options for each business within the segment, which had US$7.2 billion of sales in 2012, the company said in a July 22 statement.
“We have been carefully weighing the strong cash generation of our performance chemicals businesses against their cyclicality and lower growth profile,” chairman and CEO Ellen Kullman said in the statement.
Under Kullman’s leadership, DuPont has shifted away from its traditional commodity chemical activities toward higher-margin businesses focused on rising global demand for food, energy and security.
DuPont’s sales of performance chemicals dropped about 9 per cent in the second quarter 2013 compared to last year, while volumes increased 12 per cent. That contrasts with its agriculture business, which saw 7 per cent sales growth in the second quarter ended June 30, due in part to higher seed prices.
Teflon is used in non-stick coatings and a variety of high-end industrial applications. Ti02 is commonly used in plastics for its UV resistant properties and resistance to discoloration.