DuPont (DD - Analyst Report) has announced that it is making strong progress in commercializing Opteon YF (HFO-1234yf) refrigerant. It is making commercial shipments of the refrigerant from its facilities in Japan and China.
DuPont’s Opteon YF is a next-generation refrigerant and a group of leading automakers confirmed that the product is safe and effective for use in automotive applications. The product has a 99.7% lower global warming potential (GWP) than the refrigerant which it has replaced and the risk of vehicle fire associated with this refrigerant is very rare.
DuPont considers Opteon YF to be an ideal solution for automotive air conditioning in terms of safety, performance and environmental impact. DuPont anticipates that it has enough supply to meet current customer needs for compliance with the European Union's Mobile Air Conditioning (MAC) Directive, effective Jan 2013. This regulation is a necessary component in the European Union's sustainability programs and will have considerable impact on reducing the environmental footprint of automobiles.
In order to facilitate more adoption of Opteon YF, DuPont is prepared to invest in additional capacities and has also build a strong network for distribution of Opteon YF to aftermarket customers in Europe.
The facility in China maintains the product quality and production levels and sometimes even exceeds it. The supply target customers in China, who have already switched to Opteon YF, are also visiting the facility in China to understand its capabilities and quality assurance processes.
DuPont is a global chemical and life sciences company and provides innovative products, materials, and services to the global market.
DuPont currently retains a Zacks Rank #3 (hold).
Other companies in the chemical industry that are worth considering include Shin-Etsu Chemical Co., Ltd. (SHECY - Snapshot Report) , Celanese Corp. (CE - Analyst Report) and Methanex Corp. (MEOH - Analyst Report) . While Shin-Etsu Chemical retains a Zacks Rank #1 (Strong Buy), Celanese and Methanex carry a Zacks Rank #2 (Buy).