17 September 2009 /PRNewswire-FirstCall/ — Economic recovery is progressing in China, India and Brazil, and DuPont (NYSE: DD) is well-positioned to continue to capture growth in these countries where a significant increase in population and globalization are transforming markets, said DuPont Executive Vice President and Chief Innovation Officer Thomas M. Connelly at the Credit Suisse Chemical and Ag Science Conference.
“DuPont has tremendous opportunities for growth in emerging markets,” Connelly said. “The economies in these regions are growing significantly faster than developed markets, particularly for the kind of businesses that DuPont is in. Our long-term goal is to penetrate all major markets to the same degree that we have in the United States. This will take some time, but offers significant headroom for growth.”
DuPont sales in emerging markets grew by 80 percent in the past five years at a compounded annual growth rate of 16 percent, and accounted for nearly one-third of the company’s $30.5 billion sales in 2008. While 2009 emerging market sales estimates are expected to be down about 10 percent from $9 billion in 2008, the company projects 2012 emerging market sales of about $13 billion.
“Our approach to growth outside the United States typically targets key fast growing industries as the increasing population needs more food, better infrastructure and transportation and a greater emphasis on safety and security. Innovation plays a key role in our ability to penetrate and grow in an emerging market. We initially establish relationships with strong local supply chains and build a base of business with our existing offerings. As we gain market insight, we use our science capabilities to develop products that are tailored to the unique demands of the local market,” Connelly said.
China
DuPont received its first sales order from China more than 100 years ago, and opened its first sales office in Shanghai in 1919. Last year, sales in China were nearly $1.7 billion with a compounded growth rate of 14 percent over the last five years.
“Next generation solar technology is a large market opportunity for DuPont in China,” Connelly said. DuPont is currently a major supplier to the crystalline silicon solar cell and module market with products including DuPont™ Tedlar® PV 2000 and 2100 series, Solamet® metallization pastes, and Elvax® encapsulant resins. To support this fast growing industry, DuPont recently launched a Photovoltaic Technology Center at the DuPont China R&D Center in Shanghai to provide local customer technical support and product innovation.
DuPont materials also are critical to next generation thin film photovoltaic modules, which hold the promise of better cost effectiveness for large scale commercial and utility applications and building integrated installations. DuPont launched a thin film photovoltaic subsidiary in Shenzhen to focus on amorphous silicon thin film modules which will become operational later this year.
India
With a 14 percent compounded annual growth rate over the last five years and 2008 sales of nearly $500 million, India is a strategic market for DuPont.
“The opportunities in India are significant,” Connelly said. “This is the fourth largest economy in the world, with a growth rate in the high single digits. It has a large pool of talent, which is why we opened our most recent global R&D center in Hyderabad.”
An example of DuPont innovation in India can be found in the recently launched Tata Nano vehicle. Inexpensive and lightweight, the Nano has a 33 horsepower engine and achieves more than 50 miles per gallon. The car currently costs about Rs.100,000 (rupees) or $2,000, and is enabled, in part, by DuPont performance coatings, polymers and know-how that deliver energy efficiency as well as a one-of-a-kind vibrant color and style. Paints from DuPont Performance Coatings that can be applied to metal and plastic as well as polymer lightweighting materials, including DuPont™ Viton® elastomers, are just a few of the DuPont materials inside the new Nano.
The slides used during this presentation are available on the DuPont website in the Investor Center at www.dupont.com.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management’s current expectations, estimates and projections. The company does not undertake to update any forward-looking statements as a result of future developments or new information. All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in DuPont’s filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions of countries in which the company does business; competitive pressures; successful integration of structural changes, including acquisitions, divestitures and alliances; research and development of new products, including regulatory approval and market acceptance, and seasonality of sales of agricultural products.
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SOURCE: DuPont
