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DowDuPont to house new agriculture business in Delaware

DowDupont

 

 

The agricultural chemicals arm of the post-merger DowDuPont company will call Delaware home.

 

It means the state will house two-thirds of DowDuPont's global headquarters, a major win for state leaders.

 

They rallied to land the agriculture sector after DuPont announced it would merge with Dow and split into three separate companies. DowDuPont previously announced Delaware will also house the post-merger specialty products arm.

 

 

Gov. Jack Markell calls DowDuPont’s decision to place its Ag company in the First State along with Specialty Products "a win for Delaware."

 

"Especially because just 10 weeks ago, so many of the so-called experts were predicting we'd end up with nothing," said Markell.  "So I think it's a big win for Delaware, and [I'm] especially grateful to the very talented men and women of DuPont."

 

 

Markell notes that the combined revenue of the specialty products sector and the ag division exceeds that of DuPont today.

He adds the decision is also an indication DowDuPont sees Delaware's strategic position in the marketplace. And he says in a statement that Delaware will work to help the ag company grow into "a leader in the agricultural sciences field."

The move comes on the heels of DuPont’s announcement of 1,700 layoffs in the First State earlier this year - with more possible as the merger moves forward. Markell says Friday's announcement helps ease that blow to the state economy.

“Had we not secured these headquarters for Delaware, I mean, it could have really been devastating because the loss would’ve been significantly more" Markell says. "I think we could’ve been close to zero."

Sen. Tom Carper agrees - this is welcome news.

“There will still be a lot of ag jobs that will go and stay in Iowa.  A lot of ag jobs will stay in Indiana.  But we are delighted to have two of the corporate headquarters here," said Carper. We’re pleased with that”

Dow and DuPont say in a press release that the new ag business will bear DuPont's name.

The third company, focusing on material sciences, will be called Dow and will be housed in Midland, Mich., where Dow is currently based.

 

Midwestern states had also angled for the new company's agriculture arm. Dow and DuPont say Delaware will be the global HQ for ag, with corporate business centers in Iowa and Indiana.

 

State Chamber of Commerce president Rich Heffron says the First State beating out that competition for the ag company came down to a can-do attitude.

 

"When things change, you can't mope about it," Heffron says. "You've got to look at it as the opportunities. And I think that's what impressed them."

 

And Heffron agrees with Gov. Markell that DowDuPont saw the strategic advantages Delaware offers.  He says he thinks Delaware has proven itself to be business-friendly, most recently by passing a corporate tax restructuring just a few weeks ago.

"And I think that showed them how quickly we can all work together to get something done," said Heffron.
 
In a joint statement, Mark Turner, Chairman of Delaware Business Roundtable (President and CEO, WSFS Bank) and Chip Rossi, Chairman of Delaware State Chamber of Commerce (Delaware Market President, Bank of America) applauded the DowDuPont's decision. 

"This announcement reinforces Delaware’s long-standing reputation as a business friendly state, particularly since a number of states were competing to have these businesses located within their borders," the statement read in part.  "We believe some of the factors contributing to this decision were the state’s attractive business climate, the skilled and highly educated workforce and the close and constructive working relationship between government, business, and higher education in our state."

The merger still needs to go through federal anti-trust approvals before being finalized later this year

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