US DuPont to keep Tedlar, stake in Teijin Films joint venture

HOUSTON (ICIS)–DuPont plans to keep its Tedlar business as well as its stake in the DuPont Teijin Films joint venture, the company said on Tuesday.

The joint venture makes films out of polyethylene terephthalate (PET) and polyethylene naphthalate (PEN), sold under the brand names Mylar, Melinex and Teonex.

DuPont and Teijin own equal stakes in the joint venture.

Tedlar is DuPont’s brand of polyvinyl fluoride (PVF).

The material is used in aerospace as well as transportation, construction, signs and photovoltaics.

DuPont also decided to keep its Microcircuit Materials business.

CEO Ed Breen said the businesses are down right now because of their end markets. He made his comments during an earnings conference call.

For example, Tedlar sells a lot of material to the aerospace industry, which has taken a hit from the coronavirus pandemic.

“We think there is nice upside coming into these businesses. It would not have been productive to sell them,” Breen said.

“We made the decision strategically to hold on to them. Do not expect them to be up for sale during the year. That is not what we are doing,” Breen said.

DuPont had earlier classified these three businesses as noncore.

Back in July 2020 the company said it had attracted interest in all of its noncore businesses.

Among those noncore businesses, DuPont did reach agreements to divest Clean Technologies, Biomaterials and Solamet businesses.

The Clean Technologies deal is worth $510m and it is being bought by an international consortium of private-equity firms that include BroadPeak Global LP, Asia Green Fund and The Saudi Arabian Industrial Investments Co (Dussur).

Clean Technologies is focused on catalyst and process technologies to produce and regenerate sulphuric acid; hydroprocessing technology to desulphurise motor fuels; alkylation technology to produce clean gasoline; and air pollution control systems for refineries and chemical facilities.

The Biomaterials deal is worth $240m. DuPont has not identified the buyer.

Biomaterials produces DuPont’s SORONA , a brand of polytrimethylene terephthalate (PTT). PTT is made with renewable 1,3 propanediol (PDO) and purified terephthalic acid (PTA).

DuPont did not disclose the financial details of the Solamet divestment.

In all, DuPont expects to $900m in pre-tax proceeds from non-core divestitures this year.

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