Good afternoon everyone,
The opening of the new headquarters of Chemours this week marked a victory tour of sorts for a company that has staged a remarkable turnaround since its launch in July of 2015.
Earlier in the month, its highly regarded CEO Mark Vergnano talked about the company’s path forward in a celebration of sorts at the Delaware State Chamber’s annual meeting.
A few years back, Chemours was viewed by many analysts as a dumping ground for DuPont’s cast-off business and accompanying environmental legacies.
Chemours, led by wily DuPont veteran Vergnano, went to work. Chemours simplified is structure to reflect its smaller size, cut the debt load and made tough decisions on plant closings.
One of its priorities was finding a headquarters and research center that would help attract the current and next generation of workers.
Thanks to changes in corporate taxes – which along with other incentives will also keep two spinoffs of DowDuPont in Delaware, Chemours opted to stay in space at the DuPont Building in downtown Wilmington. The spin-offs remaining in Delaware are DuPont and the combined DowDuPont agribusiness, Corteva.
The venerable building was renovated top to bottom by Buccini/Pollin Group’s construction unit. It marked a continuing trend of companies locating away from office parks that many millennials detest. Meanwhile, downtown has seen a small boom in apartments and restaurants.
There were bumps and bruises along the way in downtown.
A long-overdue rerouting of the diesel-fume filled transit hub on Rodney Square, sought by Chemours and other employers, led to charges of bias. Some passengers were forced to walk blocks to catch a connecting bus. DART has responded by upgrading shelters and tweaking some routes.
The dust-up produced a burst of investigatory journalism over Emails between government and private sector figures suggesting (you guessed it) collusion.
Meanwhile, a win-win with no downsides came with a decision to locate an innovation (research) center on the increasingly busy University of Delaware’s STAR Campus.
Better yet, a stronger economy lifted Chemours key businesses, including its lucrative titanium technologies unit.
Chemours still faces big challenges. The company remains entangled in issues related to the GenX chemical being found in waterways around its North Carolina operations.
Focusing on a strong safety and environmental focus remains important for a company that among other things makes sodium cyanide used in gold mining.
Chemours’ stock is down sharply from a stratospheric high of $57 in 2017. Investors initially drove the stock price down to $3 a share, then went on a buying spree. The current price is $34.
Chemours remains a small company by global standards that is subject to ups and downs in the economy.
One misstep could bring in activist investors like Nelson Peltz. Peltz led a proxy battle at DuPont that triggered the ouster of its CEO. The move led to a merger/split-up and major job cuts.
For now, Chemours, Wilmington and Delaware have a lot to celebrate.
Enjoy your weekend. The newsletter returns on Monday. – Doug Rainey
