U.S Chemical giant, The Dow Chemical Company (DOW) has made an equity investment of $10 million in Nuvosun, a start-up focused on copper indium gallium selenide (CIGS) solar cells.
NuvoSun is a second generation innovator of thin-film photovoltaic (PV) cells and modules based on flexible Copper Indium/Gallium di- Selenide (CIGS) technology. NuvoSun's mission is to redefine the cost point for PV cells and modules and to become the lowest cost producer of these products by 2012.
Dow is rapidly expanding its footprint in various green markets and has also made a number of other investments in this regard. In September, Dow Corning, a joint venture between Dow and Corning, brought a silicone sealant originally devised for outer space solar panels to the conventional solar panel market. Silicone not only protects better than standard coatings, but also increases factory output.
In April 2009, Dow completed its acquisition of Rohm and Haas (ROH). The acquisition was a major step in Dow’s strategy of boosting its performance products and specialty portfolio to deliver more consistent earnings growth. Combining the two organizations’ best-in-class technologies, broad geographic reach and strong market channels created a $14.0 billion diversified business portfolio, called Dow’s Advanced Materials division.
As an industry giant with hefty resources, we believe Dow will be a formidable competitor in the solar market. The company will not only aim to take business away from manufacturers of conventional solar panels, it will also be jostling with other developers of building materials that can produce solar energy.
DOW faces stiff competition from EI DuPont de Nemours & Co. (DD).
Currently, Dow has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long- term Neutral recommendation.
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