Jefferies Comments On DuPont Capacity Expansion

Over the next three years, DuPont DD plans to liberate 150,000 tpy capacity at five existing sites through debottlenecking activities (using DuPont Production Systems technology), Jefferies reports. “In addition, the company will spend $500m to complete a 200,000 tpy expansion at its Altamira site in Mexico, implying a $2,500/ton investment,” Jefferies writes. “This compares to an estimated $2,200-$2,400/ton brownfield and $2,400-$2,900/ton greenfield capital requirement back in 2009. In the last five years, the company has liberated more than 100,000 tpy from existing facilities. All together, these investments should bring DuPont's total TiO2 capacity to 1.55m tpy in 2014.” DuPont closed Wednesday at $54.12.