December 13, 06

NEWS / DuPont forms venture to boost seed sales in China

DuPont Co., the biggest U.S. corn-seed producer, formed a joint venture with Gansu Dunhuang Seed Co. to expand sales of genetically modified seeds to Chinese farmers.

The venture, Dunhuang Seed Pioneer Hi-Bred Co., will develop and distribute high-yielding hybrid seeds for the spring corn market in China, the Wilmington-based company said today in a statement. Dunhuang Seed, based in Jiuquan in China??™s Gansu province, owns 51 percent of the venture, and DuPont has the rest. The companies plan to produce seed next year for sale in 2008.

DuPont??™s Pioneer Hi-Bred International unit, based in Des Moines, Iowa, formed its first joint venture in China with Shandong Denghai Pioneer Seeds Co. in 2002. The first sales were in 2004, and the venture has had ???solid growth,??? Dupont said.

Shares of DuPont rose 52 cents to $47.42 yesterday in New York Stock Exchange composite trading. They have gained 11 percent in the past year. Dunhuang Seed climbed 0.07 yuan to 5.74 in Shanghai. The stock has doubled in the past 12 months.

DuPont is the third-largest U.S. chemical producer by 2005 revenue. Dow Chemical Co. is the biggest, followed by Exxon Mobil Corp.