Dow AgroSciences, a wholly-owned subsidiary of The Dow Chemical Company ( DOW ), has expanded its current association with the Department of Primary Industries (DPI) of the State of Victoria by entering into a new research and development project.
The project is intended for the development of new varieties of high performance canola specially designed to benefit farmers in Australia and globally. However, the financial terms of the transaction were not declared.
The collaboration between Dow AgroSciences and DPI started back in 2009 and the new research project represents the sixth project under the agreement. The new project will be based out of DPI's research facilities at Horsham and the new AgriBio, Centre for AgriBioscience at Bundoora.
As per the deal, Dow AgroSciences will work through DPI's commercial arm - Agriculture Victoria Services Pty Ltd - by applying its precision genome editing technology platform "EXZACT" to enhance the performance of canola crop varieties. EXZACT was developed by Dow AgroSciences under an exclusive license and collaboration agreement in plants with Sangamo BioSciences, Inc. ( SGMO ).
In addition to developing enhanced new varieties of canola crop, EXZACT is capable of creating novel gene combinations in commercial varieties that will rapidly allow the production of crops with enhanced performance.
Few days ago, Dow Personal Care, a unit of Dow Chemical, entered into a distribution agreement with Nexeo Solutions, a global distributor of chemicals, plastics, composites and environmental services. Nexeo will operate as a key distribution partner of Dow Personal Care in the U.S.
Dow Personal Care's partnership with Nexeo Solutions builds upon the latter's long-standing relationship with Dow Chemical in other markets across North America.
Under the agreement, Nexeo Solutions will promote and market various Dow Personal Care product lines in the U.S.
Dow Chemical retains a short-term (1 to 3 months) Zacks Rank #3 (Hold).
Other companies in the chemical industry that are worth considering include Olin Corp. ( OLN ) and Akzo Nobel NV ( AKZOY ). While Olin retains a Zacks Rank #1 (Strong Buy), Akzo holds a Zacks Rank #2 (Buy).