DuPont plans to spin off engineering plastics business

It all started in February 1935 at the DuPont Experimental Station in Wilmington, Texas, with the first production of polymer 6-6, which later became the polyamide (PA) resin Nylon 66
.
Commercial production in fiber form began in December 1939 in Seaford, Texas, and in May 1940, nylon stockings were first retailed
.

DuPont then developed its PA business into a global engineering plastics company under the Zytel brand, which is widely used in the automotive industry
.

Some 86 years after its discovery, DuPont now sees better prospects in electronic materials and plans to acquire Chandler, Arizona-based Rogers, a maker of electric vehicles, advanced driver assistance systems (ADAS) ), a leading supplier of high-margin advanced materials for applications such as 5G telecommunications and clean energy
.
Rogers Corporation's product portfolio includes circuit board materials and specialty elastomers for electronic applications based on silicones, EPDNs, solid polyurethanes and thermoplastics
.
As a result, with a target deadline of the fourth quarter of 2022, DuPont has announced plans to divest several products in its mobility and materials portfolio, which have estimated 2021 sales of $4.
2 billion
.

In addition to Zytel, specialty nylon and high temperature nylon products, there are other engineering resins and performance polymers pioneered by DuPont, including Crastin PBT, Rynite PET, Hytrel thermoplastic elastomers, Vamac elastomers and Delrin polyacetal resins
.
Surface protection films sold under the Tedlar brand (for solar panels) and the DuPont Teijin Films BOPET joint venture are also among the planned divestitures, with proceeds going to the $5.
2 billion Rogers acquisition and other "priority M&A targets
.
"

DuPont's Mobility and Materials business delivered a solid EBIDTA margin of 21.
6% in the third quarter of 2021, the envy of many polymer producers
.
But that compares with a 25.
3% margin for "water and protection" (including aramid fibers) and a 32.
4% margin for electronics and industrials, which would become a $40 billion business after the Rogers acquisition
.

Despite plans to spin off its mobility business, DuPont will continue to be a leading supplier of new electric vehicles through Rogers Corporation and group company Laird
.
Laird offers conductive elastomer gaskets, conductive tape and other electronic components
.
DuPont's move appears to be a recognition that internal combustion engines have limited growth potential and that electric vehicles will be the future of the automotive industry, with polyamides playing a key role in under-the-hood applications such as charge air ducts and intake manifolds
.

Nonetheless, PA resins have a variety of potential applications in electric vehicles, including thermostat housings and cooling pipes
.
For fuel cell vehicles, resins such as polyoxymethylene, PA and polyester engineering plastics are widely used in applications such as fuel cell stacks and hydrogen tank liners
.
As a result, the company's mobility and materials businesses for sale have attracted a lot of interest from existing players and investors
.