Shares of The Dow Chemical Company ( DOW) gained as much as 1.7% during the trading session following the news that it has extended its tie-up with ChemPoint for marketing its ANTISOL Polyanionic Cellulose ( PAC) Polymers in water drilling applications. The company’s shares eventually closed at $47.14 on Feb 20, gaining around 1.5%.
ChemPoint will market, fulfill orders, sell and distribute Dow’s ANTISOL PAC Polymers to customers across Eastern Europe and also provide technical support to them. The tie-up came into effect from Feb 20.
ChemPoint has been the primary distributor of Dow’s ANTISOL Polymers for water drilling applications in Western Europe since 2012. ChemPoint’s exceptional level of technical expertise and agile responsiveness to the customer base coupled with its focused, market-oriented approach has led Dow to expand this relationship.
With this extended partnership, Dow can now more effectively serve geographically diverse customers, markets and opportunities in Eastern Europe with the ANTISOL product line for water drilling.
ANTISOL PAC Polymers are high purity carboxymethylcellulose additives that are specially designed to serve per industry standard for flow modification and filtration properties in water-based drilling fluids.
Using ANTISOL will enable drilling fluid properties adapt more easily to the highly differing formation demands encountered during drilling. Apart from this, ANTISOL also provides effective dispersion, protection of clay particles, retention of the water in drilling fluid and shale inhibition.
ChemPoint is a Univar company, which is the world’s leading distributor of industrial and specialty chemicals. Univar operates through a global network of more than 260 facilities in North America, Europe, the Asia-Pacific region and Latin America.
Dow Chemical currently holds a Zacks Rank #2 (Buy).
Other companies in the chemical industry worth considering include Methanex Corp. ( MEOH), Northern Technologies International Corp. ( NTIC) and PPG Industries Inc. ( PPG). While both Methanex and Northern Technologies carry a Zacks Rank #1 (Strong Buy), PPG holds a Zacks Rank #2 (Buy).