The mega-merger between chemicals giants Dow Chemical Co. and DuPont will have an impact up and down the automotive supply chain.
Both companies produce plastics, other materials and key chemical compounds used by many major auto parts suppliers as well as the automakers.
DuPont and Dow agreed to merge in an all-stock deal valuing the combined company at $130 billion. The combined Dow-DuPont's auto division will account for a small portion of the company's total business, but Dow Automotive is a leader in thermoset plastics -- a kind of plastic typically used in exteriors and "in-car" products. DuPont's automotive unit primarily focuses on "under the hood" products and focuses on thermoplastics, which are plastics that soften when heated.
"In automotive, we are combining Dow's fourth position on auto exteriors and in the car with DuPont's significant presence, specifically under the hood, to become a more complete solutions provider to our customers, with more of our approach will get specked in to new designs than ever before," Dow CEO Andrew Liveris said in a conference call.