DowDuPont's (DWDP) Unit to Boost Methyl Cellulose Capacity
DowDuPont Inc.’s DWDP
subsidiary, The Dow Chemical Company, has declared that it is
making a series of investments for methyl cellulose capacity
expansion. The move will help customers of construction dry mix to
secure a reliable supply of key additives. These capacity
expansions also demonstrate the company’s commitment to the dry mix
industry.
Dow Chemical will increase methyl cellulose production capacity at
its manufacturing facilities in Bomlitz and Bitterfeld, Germany,
which will help the company to address customer demand for
high-quality cellulose ether products. Notably, expansion projects
represent a capacity enhancement of 19,000 metric tons for Dow
Chemical’s Methocel and Walocel cellulose ethers. These ethers are
used in various applications for grouts, fillers, adhesives,
levellers, and joint compounds, cement-based renders and gypsum
plasters. The new capacities are expected to be onstream in 2019
and 2020.
The company is committed to innovation and aims to expand product
portfolio with differentiated solutions. These help its customers
drive performance improvements in a competitive market.
DowDuPont’s shares have lost 19.4% in the past three months
compared with the industry’s decline of 16.9%.
During third-quarter 2018 earnings call, DowDuPont stated that it
is seeing strong global demand for products on business investment,
manufacturing output, job growth and wage increases. The company
will continue to focus on driving the top line from above-GDP
demand growth for products and new launches as well as delivering
productivity and cost synergy savings.
DowDuPont achieved cost synergy savings of more than $450 million
in the third quarter. The company raised cost synergy commitment to
$3.6 billion from $3.3 billion mentioned previously. Moreover, it
raised year-over-year savings view for 2018 to $1.5 billion from
$1.4 billion.
Dow Chemical Company (The) Price and Consensus
Dow Chemical Company (The) Price and Consensus | Dow Chemical Company (The) Quote
Zacks Rank & Stocks to
Consider
DowDuPont currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are The
Mosaic Company MOS, Gerdau S.A. GGB, and Air Products and
Chemicals, Inc. APD.
Mosaic’s shares have rallied 50.7% in the past year. The company
has an expected long-term earnings growth rate of 7% and a Zacks
Rank #1 (Strong Buy). You can see the complete list of
today’s Zacks #1 Rank stocks here.
Gerdau has an expected long-term earnings growth rate of 24.3% and
a Zacks Rank #2 (Buy). The company’s shares have climbed 19.8% in
the past year.
Air Products has an expected long-term earnings growth rate of
11.8% and a Zacks Rank #2. The company’s shares have increased 2.2%
in the past year.
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