December 12, 2006

DuPont Agriculture & Nutrition increases investment in plant biotechnology

DuPont Agriculture & Nutrition launched a plan to increase investment in plant genetics, biotechnology and other high-value growth opportunities, while further improving competitiveness in low-growth areas of its nutrition and crop protection businesses.

Under the plan, DuPont would reinvest all of the US$ 100-million savings into its seed business in order to expand the company's competitive advantage in the seed market.

The company also intends to consolidate manufacturing assets, leverage technology centres and refocus product marketing strategies in its nutrition and crop protection business.

To do so, the company might have to shut down or streamline manufacturing units at about 10 sites. Based on current estimates, DuPont expects to record a charge of about US$ 200 million in the fourth quarter of 2006 for restructuring and asset impairments.

DuPont's Herculex XTRA insect control has been found to be superior to other insect control options available. The company also claims to have bagged some strong orders from North American seed firms for next year. It also expects sales of corn hybrids with "triple stacks" to be 10 times higher than 2006.

In Latin America, total agriculture and nutrition sales exceeded the US$ 1-billion mark for the first time in 2006 on corn, soy and gains from crop protection and soy protein products in Brazil and elsewhere. Seed sales outside North America also portrayed a similar picture. Brazil has been a major growth-driven market for the company.

The company is also on track to deliver Optimum GAT herbicide- resistant trait to maximise yield potential, improve crop safety and expand weed control options.

Other growth opportunity areas in the plan include increased sales and marketing resources for the seed business, investments in safer crop protection products by delivering research pipeline products, including the planned 2008 introduction of Rynaxypyr, a next generation ultra-low toxicity insecticide, launch of crystalon vertical form fill and seal liquid packaging technology, to name a few.