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Dow Chemical Invests in a New Innovation Center at Michigan

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The Dow Chemical Company (DOW - Free Report) announced that that it will invest in a new, state-of-the-art innovation center in Midland, MI. The innovation center will provide about 200 research and development jobs in Michigan, including 100 newly created jobs while repatriate 100 jobs from other Dow facilities throughout the globe to Midland.

The new innovation center by Dow will integrate new technologies with the existing ones. The center will have scientists and engineers who will focus R&D efforts on advancing technologies for home and personal care products. Further, they will increase and broaden Dow’s energy-saving building technologies along with progressing materials for critical infrastructure. They will also be driving closer partnerships with automakers in order to further efforts to light-weight automobiles and develop hybrid, electric and autonomous transportation solutions.

The company has some of the most creative people globally working with chemistries that can help solve the world’s most pressing challenges, from clean water scarcity to the preservation of food, energy and the environment.

Dow has outperformed the Zacks categorized Chemical industry over the past three months. The company’s shares have gained 10.9% over this period, compared with a 6.8% gain recorded by the industry.

Dow’s adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate, aided by its productivity and cost-reduction actions.Dow should benefit from its productivity and aggressive portfolio management actions as well as strategic investments in the U.S., Gulf Coast and Middle East.

Moreover, the company is moving forward with its planned mega-merger with DuPont (DD - Free Report) , which is expected to create significant synergies. Dow is also likely to gain from cost synergies associated with Dow Corning Silicones business in 2016.

Dow Chemical currently carries a Zacks Rank #3 (Hold).

 

 

Stocks to Consider

Some better-ranked companies in the chemical space include The Chemours Company (CC - Free Report) and FMC Corp. (FMC - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).

Chemours has an expected long-term growth of 15.5%. You can the complete list of today’s Zacks #1 Rank stocks here.

FMC has an expected long-term growth of 10.88%.

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