Corteva, the combined agriscience business of DuPont and Dow, has moved its world headquarters from the Chestnut Hill site near Wilmington. to Indianapolis, effective immediately.
The move by the publicly-traded company was not a surprise, given its decision to put space at the Chestnut Run site on the market and the appointment of a new CEO Chuck Magro. Magro, who formerly headed a Canada-based fertilizer company, succeeded veteran DuPonter Jim Collins.
The retirement came after an activist investor group demanded Collins’ ouster, citing lagging stock performance but later agreed to end its battle with the company.
“In today’s flexible world of work, we have seen clear proof that our dedicated employees can be productive wherever they are. Designating our Indianapolis location as the Corteva headquarters brings us closer to our operations, our technology, and our customers while optimizing our flexibility,” Magro stated in a brief release announcing the decision.
A company spokesperson said “there are no plans to reduce Corteva’s presence in Wilmington, and the site will maintain an important role. In fact, we will continue to have executives based in Wilmington.”
The initial DowDuPont merger and spin-off designated Delaware as the headquarters for Corteva. However, the company kept a relatively small staff in Delaware.
Corteva kept a low profile in the state, although it has been a supporter of the agriculture-focused Delaware State Fair.
Much of the worldwide company’s presence in the US is in the Midwestern “farm belt,” which includes Indiana, Michigan, and Iowa, home of the Pioneer brand of seeds that were part of DuPont.
Corteva specializes in seeds and crop protection but has moved into technology – including the use drone aircraft and software as ways to improve earnings for farmers.
DuPont retirees will continue to have a more than passing interest in Corteva, since the company’s pension plan was moved over to the agribusiness company on the premise that its potential for growth and profits would benefit the system. Like many companies, DuPont had long ago ended fixed pensions for newer employees.
So far, DuPont and Corteva have stopped short of moving the plan to an insurance company that would convert the plan into an annuity paid through a lump sum or regular payments.
There have been complaints among retirees about the responsiveness of Corteva which also ended a life insurance plan for retirees.
The complex merger and spin-off of Dow and DuPont that led to the formation of Corteva remain a work in progress when it comes to the stock price of the three companies, although there has been some uptick in Corteva’s shares.
Edward Breen, who engineered the deal with the former CEO of Dow, returned to DuPont as its CEO after the company reported disappointing earnings. Breen has been selling off businesses and focusing on the fast-growing electronics market. Dow shares have also lagged, despite its sizeable stock dividend.
DuPont did forecast stronger earnings in 2022, despite higher material costs and supply chain issues.
