DuPont faces investigation by Chinese regulator

WILMINGTON, DE - DuPont de Nemours, Inc. (NYSE:DD), a $24.15 billion chemical giant known for its Tyvek® brand, disclosed today that the State Administration for Market Regulation of the People’s Republic of China (SAMR) has launched an investigation into the company’s business practices. The chemical giant, which specializes in materials such as synthetic resins and elastomers, confirmed its cooperation with the regulatory inquiry. According to InvestingPro data, DuPont has demonstrated strong financial health with a "GOOD" overall rating, despite recent market pressures.

The company, with its headquarters in Wilmington, Delaware, stated that its Tyvek® sales in China during the full year of 2024 amounted to roughly $90 million. This figure represents less than 1% of DuPont’s consolidated net sales, which reached $12.39 billion in the last twelve months.

DuPont, listed on the New York Stock Exchange under the ticker (NYSE:DD), emphasized the seriousness with which it is treating the investigation and assured its commitment to complying with all regulatory requirements.

The information regarding the investigation was presented in a recent 8-K filing with the Securities and Exchange Commission. However, DuPont clarified that the details provided in the filing should not be considered filed for purposes of Section 18 of the Securities Exchange Act, nor should they be taken as incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act.

The announcement does not detail the specifics of the investigation or the potential implications for DuPont’s operations in China. The company’s Senior Vice President and General Counsel, Erik T. Hoover, signed the SEC filing, underscoring the formal acknowledgment of the regulatory matter by DuPont’s executive leadership.

Investors and stakeholders in the chemical industry will be watching closely as the situation develops, considering the impact such investigations can have on a company’s reputation and financial performance, especially in a significant market like China. DuPont’s prompt disclosure reflects its adherence to regulatory compliance and transparency with its investors. The news comes as DuPont’s stock has fallen 8.44% over the past week, though InvestingPro analysis suggests the company is currently undervalued, with 12 additional exclusive ProTips available to subscribers through the comprehensive Pro Research Report.

In other recent news, DuPont De Nemours Inc. is navigating significant developments that could impact its operations and strategic direction. The company is currently under investigation by China’s State Administration for Market Regulation for suspected monopolistic practices, amid escalating trade tensions between the United States and China. This investigation coincides with China’s announcement of a new 34% tariff on U.S. imports, which could disrupt DuPont’s supply chains and increase operational costs. Additionally, DuPont is reportedly considering selling its Nomex and Kevlar brands, potentially generating around $2 billion as part of a broader restructuring effort.

Meanwhile, DuPont is progressing with the spin-off of its Electronics division, appointing Jon Kemp as CEO of the new entity. The spin-off is expected to be completed by November 1, 2025, and the company has named board members for the future independent company. Citi has maintained its Buy rating on DuPont, with a $95 price target, expressing confidence in the strategic growth potential of the Electronics spin-off. The firm highlights Kemp’s leadership and the planned appointment of Michael Stubblefield as chairman as positive steps for the new company’s future. These developments reflect DuPont’s focus on high-growth markets and strategic restructuring efforts amidst challenging global trade conditions.

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