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DuPont Strengthens Global RO Reach With China Facility Acquisition

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Key Takeaways

  • DuPont will acquire Sinochem (Ningbo) RO Memtech to expand FilmTec RO production in China.
  • The move strengthens DuPont's Asia-Pacific presence and brings manufacturing closer to customers.
  • Local production enhances cost efficiency, sustainability, and supply chain resilience for DuPont.

DuPont de Nemours, Inc. (DD - Free Report) has agreed to acquire Sinochem (Ningbo) RO Memtech Co.,Ltd., a company based in Zhejiang Province, China. This acquisition is intended to broaden DuPont's capacity for producing its FilmTec reverse osmosis (RO) elements, particularly to serve China and the broader Asia-Pacific region. The acquisition is expected to be completed in the fourth quarter of 2025.

DD's Strategic Move to Meet China's Market Needs

DuPont's acquisition of Sinochem (Ningbo) RO Memtech Co., Ltd. represents a strategic expansion of its FilmTec RO manufacturing into China, aimed at strengthening its presence in the rapidly growing Asia-Pacific market.

By establishing production within China, DuPont positions itself much closer to its regional customer base, enabling faster delivery times, better alignment with local regulations, and greater responsiveness to market demands. This move also enhances operational flexibility and supports a more resilient supply chain by reducing reliance on long-distance logistics.

Local manufacturing enhances DuPont’s cost efficiency and supports sustainability by reducing transport emissions and aligning with global carbon goals. With increasing water challenges in China and the Asia-Pacific, demand for advanced reverse osmosis solutions is growing. This acquisition boosts DuPont’s capacity to meet that demand. The Zhejiang facility will be the third RO location for DD, along with its Edina, U.S. and Jubail, Saudi Arabia plants, ensuring reliable, high-performance products and reinforcing the company’s global reputation in water treatment.

The shares of DD have gained 6% year to date compared to its industry’s 16.6% decline.

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DD’s Zacks Rank & Key Picks

DD currently carries a Zacks Rank of #3 (Hold)You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Basic Materials space are Hecla Mining Company (HL - Free Report) , Hawkins, Inc.(HWKN - Free Report) , and CSW Industrials, Inc. (CSW - Free Report) . HL, HWKN, and CSW carry a Zacks Rank #2 (Buy) each.

The Zacks Consensus Estimate for HL’s current-year earnings is pegged at 33 cents per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met once, with an average surprise of 35.8%.

The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings is pegged at $4.41 per share, indicating a 9.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 0.3%. HWKN’s shares have gained 49.7%.

The Zacks Consensus Estimate for CSW’s 2025 earnings is pegged at $10.26 per share, indicating a rise of 22% from year-ago levels. The company’s earnings beat the consensus estimate in all of the trailing four quarters at an average of 5.6%.

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