Dow AgroSciences LLC, a subsidiary of
The Dow Chemical Company
), has entered into a strategic supply deal for choline hydroxide
with Taminco US Inc., a subsidiary of
). The companies did not disclose the financial terms of the
deal. Choline hydroxide is an important raw material component of
Enlist Duo herbicide, which is specifically designed for the
Enlist Weed Control System.
Per the agreement, Taminco will supply choline hydroxide to Dow
AgroSciences for herbicidal uses. The agreement will be
instrumental in the production of Dow AgroSciences' proprietary
2,4-D choline which is a primary component in Enlist Duo
manufactured with Colex-D Technology.
Dow AgroSciences plans to ramp up seed production and its supply
of Enlist Duo herbicide with Colex-D Technology to support the
anticipated Enlist launch. The Colex-D Technology package will
offer customers considerable benefits including ultra-low
volatility, minimized potential for drift, decreased odor and
improved handling characteristics.
Taminco is the world's largest producer of alkylamines and
alkylamine derivatives and will support one of the major
initiatives of Dow through innovation. Dow's Enlist Weed Control
system will help in agricultural practices and Dow feels that its
alliance with Taminco will take it forward to meet demand in
Dow reported mixed second-quarter 2013 results on Jul 25. The
company's profit soared in the quarter on strength in its
agriculture business and a sizeable gain from an arbitration
case. Adjusted earnings beat the Zacks Consensus Estimate, while
sales missed. Gains across agricultural sciences and performance
materials were offset by declines in feedstocks and energy and
Dow is benefiting from strong fundamentals in agriculture and
food markets, and is leveraging its North American feedstock
advantage. A string of innovative products in its pipeline adds
to its strength. However, weakness in the electronics and
construction end-markets may continue to be affected moving
ahead. Moreover, Dow still faces challenges in Western Europe and
is exposed to significant pension headwinds.
Dow currently holds a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering are
Northern Technologies International Corp.
Eastman Chemical Co.
). Both of them hold a Zacks Rank #2 (Buy).
DOW CHEMICAL (DOW): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
NORTHERN TECH (NTIC): Free Stock Analysis
TAMINCO CORP (TAM): Free Stock Analysis
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