I have heard some speculation that one was buying the other, or that there would be some kind of merger.

Never say never, but I still doubt that is part of the plan. Financially, both are healthy and there is no financial or competitive reason for such a tie-up.

BUT, given the state of affairs with production costs – primarily raw materials and energy – this relationship could be the shape of things to come.

The industry will certainly be looking at this arrangement with great interest. The economies of scale in raw material purchasing alone will attract attention. Think, too, of the possibilities when you consider how the deal may advance both companies’ engineering and technology, not to mention production efficiencies.

In short: This relationship may open the door to similar deals between other competitors.

If you have comments to share, send to me at [email protected].

– Jim Smith