The Dow Chemical Company’s (DOW) business unit, Dow Automotive Systems, has been chosen as the structural adhesives supplier for the 2015 Ford F-150, which was launched in Nov 2014. The car specifically uses Dow’s BETAMATE structural adhesives for strength, weight reduction and improved manufacturing efficiencies as its frame is made out of high-strength, lightweight steel whereas its front-end, cab, box and tailgate are made out of aluminum alloy.
Along with BETAMATE structural adhesives, Dow will also be supplying BETASEAL glass binding adhesives to Ford. This is the windshield bonding material in the F-150. Dow has been working in collaboration with Ford for many years, resulting in the creation of a successful adhesive solution, specifically customized to meet Ford’s parameters for design, manufacturing and sustainability.
Moreover, Dow remains committed to create new technologies and adhesive solutions that can meet specific customer needs and support a broad range of objectives across the entire vehicle platform.
BETAMATE structural adhesives were launched in Sep 2014 for binding parts of automobiles, ensuring safety, durability, and a lightweight and superior design. These also enhance fuel efficiency in vehicles by reducing the use of traditional and heavy steel parts, and through the introduction of lightweight parts made of aluminum.
Dow is expected to continue to gain from its productivity and growth strategies as well as its aggressive cost-reduction initiatives. The company is also selectively divesting underperforming assets which are exposed to raw material price swings.
Recently, Dow’s fully-owned subsidiary, Dow AgroSciences wrapped up the acquisition of Coodetec’s seed business. This is the second largest acquisition by Dow AgroSciences, helping it expand its footprint in high-value growth markets. The acquisition boosts Dow’s genetics portfolio, operations breeding and development of new technologies.
Dow currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the chemical space include Compass Minerals International Inc. (CMP), Innophos Holdings Inc. (IPHS) and Air Products & Chemicals Inc. (APD). While Compass Minerals and Innophos Holdings sport a Zacks Rank #1 (Strong Buy), Air Products carries a Zacks Rank #2 (Buy).
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