Dow Chemical and Xgenex Partner to Sell WRS Technology - Analyst Blog

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The Dow Chemical Company 's ( DOW ) business unit - Dow Microbial Control - inked a commercial agreement with food safety company Xgenex LLC for selling Dow Advanced Oxidation System (AOS) certified Whole Room Sanitization (WRS) used in food processing and packaging environments.

The AOS-certified WRS technology provides sustainable sanitization solution and can decrease and control pathogens both on surface and air. This system works by creating ozone vapor on demand out of surrounding air and water, eradicating the need for shipping and storing chemicals. Ozone has been approved by the U.S. Department of Agriculture to be used in organic food production.

Dow Microbial Control aims to expand its footprints in the commercial market for the WRS system by partnering with Xgenex, a renowned provider of sustainable food safety technology. Following WRS's success and positive feedbacks, Dow plans to make it available for trials and display at food packaging and processing facilities in the U.S.

The AOS-certified WRS uses non-condensing ozone humidity that penetrates hard-to-reach areas including hidden areas of equipment, drains, vents and fabrics. Three recent studies backed by field trials have proved the efficacy of this technology in controlling harmful pathogens including Listeria, E. coli and Lactobacillus.

Food producers with dry or wet facilities can rely on this strong sanitization technology. The technology not only eliminates the conventional cleaning practices but also requires no additional capital expense or chemical purchases. Moreover, every treatment is supervised in real time and certified by Dow with standardized reports and data for audit purposes. Additionally, this system does not harm the environment.

Dow Chemical currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the diversified chemical space worth considering include LyondellBasell Industries NV ( LYB ), Johnson Matthey plc ( JMPLY ) and Valhi, Inc. ( VHI ). All these stocks hold a Zacks Rank #2 (Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AOS , DOW , LYB , VHI , JMPLY

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