DuPont Corp. (NYSE: DD), the 198 year-old science-based solutions company, announced Friday that it will work with Internet Capital Group (Nasdaq: ICGE) to create an online business-to-business (B2B) market for industrial goods and services.
In late January, DuPont and Chemdex Corporation formed a new company, Industria Solutions, to create a vertical online marketplace to streamline purchasing in the $75 billion (US$) fluid processing market.
Through the joint venture, called CapSpan, Internet Capital Group will build a B2B Web site based on DuPont’s experience in the industrial goods sector.
DuPont, a large-volume buyer and supplier, will anchor the site, but it will be a neutral marketplace that will incorporate other strategic partners, the companies said.
The two hope to involve some of the 55 companies that are already working on the Internet through affiliations with Internet Capital Group, such as e-Chemicals, Inc., CyberCrop.com, Inc. and plastics supplier CommerX, Inc.
Tools for Online Success
CapSpan, to be based in Wayne, Pennsylvania, said it will provide industrial companies with “management, growth capital, financial, technical and infrastructure capabilities to help them take advantage of the Internet’s global reach and efficiency.”
The site said it will initially target the apparel, chemicals, construction and electronic procurement markets.
DuPont Vice President of E-Commerce and New Business Development Erik Fyrwald was named CEO of CapSpan, while Internet Capital Group Vice President of Acquisitions Skip Maner will be chief operating officer.
DuPont Chairman Charles Holliday, Jr., and ICG’s Buckley will take seats on CapSpan’s board of directors.
Barging into the 21st Century
For DuPont, the site is a move to improve existing operations and create new ones. “We can create wealth from our industry sector expertise, achieve transactional efficiencies, extend the reach of our existing businesses and create entirely new business opportunities,” Holliday said.
For Internet Capital Group, working with a global giant like DuPont adds clout to the online B2B network the company has been creating. ICG will use “DuPont’s significant presence as a buyer and seller in several markets to fuel the growth of its collaborative network of partner companies,” the companies said.
According to Buckley, “This joint venture gives Internet Capital Group and its partner companies instant access to the worldwide industry expertise and transaction volume of DuPont and other large corporations, thereby promoting the success of the marketplaces CapSpan enters.”