Tag Archives: chemical industry

DuPont and Dow Chemical to Combine in Largest Chemical Industry Merger in History

Dow Chemical Co. and DuPont Co., two historic giants of U.S. industry, will merge in a deal that’s the first step in a plan to create three new highly-focused businesses. The merger, the largest ever in the chemicals industry, will combine products from both Dow and DuPont in the areas of agriculture, commodities chemicals and specialty chemicals to create the new businesses. It comes after two years of pressure from activist investors who argued that shareholders of both companies would realize greater value if they were broken up.

Source: DuPont, Dow Chemical to Combine in Merger of Equals – Bloomberg Business

construction of chemical plants is making up for a slowdown in oil-well drilling – Bloomberg Business

America’s energy rebirth is the gift that keeps on giving for the economy. But this year, it’s more about construction than drilling holes in the ground.

While the collapse in oil and gas prices since the middle of last year caused energy companies to slash investment in oil wells, Thursday’s report on second-quarter GDP showed an interesting dynamic taking shape — investment in factories has been running full bore.

It may be surprising on the surface, given that manufacturing has simmered down this year on the heels of a weaker global economy, but spending on all types of production facilities increased at a 65 percent annualized pace in the second quarter. That was almost enough to offset a 68 percent plunge in investment in wells and mines that marked the biggest drop in 29 years.

Outlays for factory-related structures jumped even more from January through March — surging at a 95 percent pace. Over the last four quarters, investment in plants increased an average 64 percent, the strongest since records began in 1958.

via How Cheap Oil Is Fueling a Surge In New Factories – Bloomberg Business.