The market is ever volatile, and any stability businesses can find is much sought after. That’s what DuPont’s CEO, Ellen Kullman, is looking to do. News has it that the company is looking to split off from its chemicals unit and focus more on food and agriculture. Doing so would move DuPont away from the paint industry, which can be incredibly unpredictable, and more towards a sustainable and growing market.
But spinning off the paint business would be a huge change for the company, as the sales from paint pigments in sunscreen and car paint accounted for about twenty percent of DuPont’s total sales last year.
“We have been carefully weighing the strong cash generation of our performance chemicals businesses against their cyclicality and lower growth profile,” said CEO Ellen Kullman.
DuPont certainly isn’t the only chemical company shifting toward agriculture and food. Dow Chemical, its main rival, is also heading in that direction. This move should make the business more sustainable and growth-oriented in the near future.