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July 01, 2009

Dow to Achieve More Than $100 Million in Annual Savings via Additional Portfolio Management Actions to Streamline Manufacturing Footprint

Company Remains On Track to Reach $1.3 Billion in Cost Savings Related to Rohm and Haas Acquisition

The Dow Chemical Company announced today that on June 30, its Board of Directors approved a restructuring plan which calls for the shutdown of a number of manufacturing assets, including ethylene and ethylene-derivative assets in the Company's basics portfolio.

Consistent with the Company's $1.3 billion synergy commitment related to the acquisition of Rohm and Haas Company, the restructuring plan includes a charge for the elimination of approximately 2,500 positions, which has been previously announced.

Dow will also recognize an impairment charge due to an expected loss on the divestiture of certain acrylic monomer and specialty latex assets, which is required for United States Federal Trade Commission approval of the Rohm and Haas acquisition.

"Consistent with Dow's practice of active portfolio management, we continue to take quick and aggressive action to right-size our manufacturing footprint, particularly in our basics portfolio," said Andrew N. Liveris, Dow chairman and chief executive officer. "These actions are also aligned with our strategic transformation, which focuses on preferentially investing for growth in our performance and advanced materials portfolios. In addition, we are making excellent progress on achieving $1.3 billion in cost synergies from the acquisition, and today's steps demonstrate our speed and determination to deliver these savings."

Specific sites in the Company's Basics portfolio that will be impacted include:

Ethylene Production

Ethylene Derivatives

These shutdowns are in addition to numerous other ethylene-derivative closures that have occurred as part of a restructuring program announced in the fourth quarter of 2008, specifically:

(Dow Elastomers announced in December 2008 the closure of a large EPDM plant in Seadrift, Texas. )

These shutdowns, when taken in total, will reduce the Company's ethylene demand by approximately 30 percent on the U.S. Gulf Coast. As a result, Dow expects to eliminate its purchases of ethylene from the merchant market (approximately three billion pounds annually), improving the Company's cost position while fully integrating ethylene production with internal demand in order to better meet customer needs.

Platts 2009/7/1
Conversely the US VCM market is likely to tighten further and will likely push downstream PVC prices higher, sources said. The VCM market in the US remained tight prior to the Dow announcement on the back of a fire at Georgia Gulf's 727,000 mt/year VCM plant at Plaquemine and the idling of Oxy's 2.4 billion lbs/year VCM unit at LaPorte, Texas. Dow's shutdown at Plaquemine would only exacerbate the situation, sources said.

June 16 2009

Fire at Georgia Gulf plant may further squeeze US VCM

A fire at a Georgia Gulf plant in Plaquemine, Louisiana, could further restrict US supplies of vinyl chloride monomer, buyers said on Tuesday.

Georgia Gulf shut down VCM production at its Plaquemine site after a fire on Monday (6/15) morning, a source close to the company said.
The fire was extinguished after 20 minutes and did not affect ethylene dichloride (EDC), polyvinyl chloride (PVC) and chlor-alkali production at the site, according to the source.

VCM capacity at the facility is 725,000 tonnes/year, according to ICIS plants and projects.

July 8, 2009

Dow to Close its Ethylene Oxide & Glycol Plant in England

The Dow Chemical Company announced today that it intends to close its ethylene oxide and glycol (EOEG) production facility at Wilton, United Kingdom by the end of January 2010. The site employs 55 people. The actual number of jobs that could be impacted by the intended closure will be determined following an employee consultation period.

Several factors contribute to the intention to close the Dow Wilton EOEG plant, including the site’s disadvantaged input costs. In addition, demand and profit margins for the site’s outputs, particularly monoethylene glycol (MEG), began to soften in early 2008. MEG economics have been significantly worsened by the global economic recession, further placing the Wilton site at a disadvantage. The ongoing recession is expected to prolong difficult global EOEG industry conditions for several years and has expedited the need for Dow to come to a decision regarding the Wilton facility.

The Ethylene Oxide / Ethylene Glycol (EO/EG) Plant at Wilton was built by ICI in 1969. It was sold to Union Carbide Ltd in 1995 and became Dow's when the companies merged in 2001.

Jul 8, 2009

Croda to shut Wilton manufacturing site

Britain's Crodais to close its Wilton manufacturing site in North East England following a decision by Dow Chemical　to close an adjoining facility which produced a key raw material.

The manufacturer of ingredients for cosmetics and personal care products said on Wednesday it will enter into consultations over jobs with the site's 125 employees within the next two weeks.

It has taken the decision because Dow is the only UK manufacturer of Ethylene Oxide, a critical raw material, and it would be expensive for it to transport it from the continent.

July 30, 2009

Dow to Divest Ownership in OPTIMAL Group of Companies to PETRONAS for $660 Million

The Dow Chemical Company and Petroliam Nasional Berhad (PETRONAS) today announced that they have reached an agreement for Dow’s Union Carbide Corporation subsidiary to sell its entire shares of ownership in the OPTIMAL Group of Companies (OPTIMAL) to PETRONAS for $660 million.  PETRONAS would fund this acquisition through internally generated funds.  The transaction, subject to customary conditions and approvals, is expected to close by the end of the third quarter of 2009.

Dow and PETRONAS have agreed to enter into a commercial supply agreement allowing the two companies to continue serving the current customer base with products manufactured by OPTIMAL. Dow will market OPTIMAL’s basic and performance chemicals products to Dow’s existing customer base in Asia Pacific.

“OPTIMAL has been a great investment, thanks to the dedication and hard work of our joint venture employees and our partner PETRONAS,” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer. “With this transaction, we hand over the management of these businesses to PETRONAS, while at the same time remaining committed to our customers in the region. This divestiture and commercial arrangement demonstrate Dow’s ability to increase its financial flexibility and to continue to de-leverage the balance sheet."

“Our purchase of Dow’s equity in OPTIMAL would enable us to strengthen our presence in Olefins and reinforce the growth of the Malaysian petrochemical industry,” said Mohd Hassan Marican, President and Chief Executive Officer of PETRONAS.  “We have had an excellent working relationship with Dow over the years in OPTIMAL, and we expect that will continue, with Dow now becoming one of OPTIMAL’s largest customers.”

The change in ownership is not expected to have any immediate effect on employment in the region. OPTIMAL’s focus continues to be operating safely, responsibly and effectively while providing world-class products for customers throughout Asia.

Today’s announcement of Dow’s divestiture of OPTIMAL follows other actions designed to increase Dow’s financial flexibility, improve its cash flow, and pay down its bridge loan. Recent actions include:

As a result of these actions, the Company is ahead of all of its financial milestones, including the paydown of the bridge loan utilized to acquire Rohm and Haas.

About The OPTIMAL Group of Companies

Established in July 1998, the OPTIMAL Group of Companies currently comprises three joint ventures involving PETRONAS, Malaysia's national petroleum corporation, and Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company:
OPTIMAL Olefins (Malaysia) SDN. BHD. (PETRONAS: 64.25%, UCC: 23.75%, Sasol: 12%),
OPTIMAL Glycols (Malaysia) SDN. BHD. (PETRONAS: 50%, UCC: 50%) and
OPTIMAL Chemicals (Malaysia) SDN. BHD. (PETRONAS: 50%, UCC: 50%). 

Headquartered in Kuala Lumpur, OPTIMAL manufactures more than 70 products and serves key markets in the Asia-Pacific region from its world-scale petrochemical facility located in Kerteh, Terengganu, Malaysia.  Products include ethylene and propylene feedstocks, Ethylene Oxide, Ethylene Glycol, Butanol, various Ethylene Oxide derivatives, basic chemicals and specialty chemicals. 

About PETRONAS

PETRONAS was incorporated in 1974. It is wholly-owned by the Malaysian government and is vested with the entire ownership and control of the petroleum resources in Malaysia. Over the years, PETRONAS has grown to become a fully-integrated oil and gas corporation and is ranked among FORTUNE® Global 500's largest corporations in the world. For the fiscal year ending March 31, 2009, PETRONAS had a consolidated revenue of RM264.2 billion.  PETRONAS has four subsidiaries listed on the Bursa Malaysia and has ventured globally into more than 30 countries worldwide in its aspiration to be a leading oil and gas multinational of choice. For more information, visit www.petronas.com.my 

 

August 20, 2009　

MEP, UNEP and Dow Join Forces to Set Standards for Chemical Safety and Emergency Preparedness in China
　　MEP, UNEP and Dow Launch Safer Operation and Emergency Preparedness Pilot Project in Zhangjiagang

A pilot project aimed at boosting operational safety and emergency preparedness among chemical companies in China was launched today at the Zhangjiagang Yangze River Chemical Park.張家港

It follows an agreement signed last September by China's Ministry of Environmental Protection (MEP), the United Nations Environment Programme (UNEP) and The Dow Chemical Company (Dow).

The pilot, in which Dow's Zhangjiagang facility has been selected as the primary demonstration site, was launched at a workshop involving close to 30 chemical and petrochemical companies alongside local and regional authorities and community bodies.

The pilot and workshop, jointly held by MEP, UNEP and Dow, is believed to be the first cooperative effort of its kind in China to explore and provide practical information on safer operation and the implementation of community-based emergency preparedness under the approach of UNEP's Awareness and Preparedness for Emergencies at Local Level (APELL) process.

"Dow is a proud partner in this standard setting collaboration with UNEP and MEP. This project will not only positively impact the sustainable development of China's chemical industry but also benefit the society as a whole," said Neil Hawkins, vice president for sustainability and EH&S at Dow. "Dow has always been committed to setting the standard for sustainability in locations where we operate, by engaging communities, establishing joint goals and taking action for the long-term success of all involved."

"This pilot project will draw together the global and local management expertise of UNEP and MEP as well as the operational excellence of industry leaders such as Dow, and will provide valuable information and experience for the future nation-wide promotion of safer production and emergency preparedness in China," said Arab Hoballah, Chief of the Sustainable Consumption and Production Branch of UNEP.

"UNEP remains committed to supporting the Chinese government and local communities to develop and implement policies and practices that preserve the environment and improve quality of life," he added.

"As our economy grows, it has become increasingly important to effectively utilize energy, reduce pollution, decrease the frequency of safety accidents, prevent the environmental emergencies and safeguards lives. Multi-sector cooperation such as this project plays a vital role in providing corporate and international best practices in our effort to support China's sustainable development," stated MEP.

The Zhangjiagang pilot is a crucial component of a two-year program initiated in 2008 between MEP, UNEP and Dow, to support the development of a safer production and chemical safety management system in China's chemical industry value-chain, and the awareness of emergency preparedness to enterprises, and the enhancement of management capacity emergency  response, and relevant industrial environmental emergencies.

Companies participating in the pilot project should benefit from improved chemical safety: fewer accidents, safer production, fewer employees' injuries, fewer environmental emergencies and improved preparedness of the local community and of the local industry and its value-chain/buyers. Documents and experience generated from the project will be used in a case study for the further promotion of safer production and emergency preparedness promotion in China.

Building local capacity is a strong part of Dow's sustainability strategy in China.  In 2005, Dow sponsored the three-year national pilot project with the China's State Environmental Protection Administration (now MEP). Dow also partnered with China's State Administration of Work Safety to launch a national demonstration project on the safe management of hazardous chemicals promoting a better understanding and awareness among small and medium-sized enterprises.

 

September 10, 2009

Dow Announces Shutdown of Styrene Monomer and Ethylbenzene Plants in Freeport, Texas

The Dow Chemical Company announced today that it will close styrene monomer and ethylbenzene production units at its Dow Texas Operations site in Freeport, Texas by the end of the year.

Dow would not confirm the capacity of the unit, but said industry reports had listed the unit with a capacity of 460,000 tonnes/year. Global business director Brian Ames said a smaller production unit at the same site was closed in the 2008 fourth quarter.

The closures are part of a broad restructuring plan the Company announced at the end of June 2009, which is designed to right-size Dow's manufacturing footprint and reduce exposure to its capital intensive Basics portfolio.

"Closing these assets will help align Dow's styrene supply with U.S. demand and is another outcome of our plan to optimize our ethylene and styrene envelopes," said Brian Ames, global business director, Olefins, Aromatics and Aromatic Derivatives.  "This decision also aligns with Dow's asset light strategy and improves our competitive position in North America."

Dow has secured a long-term contract for reliable styrene supply in the marketplace to meet the styrene demand of its derivative businesses.

Participants speculated that a supply contract, which Dow said it secured for the remainder of its styrenics businesses, was likely made with Lyondell and not joint venture Americas Styrenics. Dow would not divuldge the supplier.
A source said Americas Styrenics did not have sufficient capacity for a long-term supply contract.

SM producers in the US include Americas Styrenics (Dow/Chevron Phillips Chemical), Cosmar (Total/Sabic), INEOS NOVA, LyondellBasell and Westlake

In the second quarter of 2009, Dow announced a restructuring plan which included actions to fully integrate ethylene production with internal demand - reducing the Company's ethylene demand on the U.S. Gulf Coast by approximately 30 percent. As a result, Dow expects to eliminate its purchase of ethylene from the merchant market (approximately three billion pounds annually) while improving the Company's cost position.

Dow remains committed to the North American market and to the Dow Texas Operations site in Freeport. Dow Texas Operations is the Company's largest integrated manufacturing site in the world, with approximately 70 production units on site.

・Freeport (Texas)：Styrofoam、latex、ABS の原料

PSはChevron Phillips Chemical との間で北南米のSM/PSの50/50JV　Americas Styrenics

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July 01, 2009 　　　　ブログ

Dow to Achieve More Than $100 Million in Annual Savings via Additional Portfolio Management Actions to Streamline Manufacturing Footprint

Company Remains On Track to Reach $1.3 Billion in Cost Savings Related to Rohm and Haas Acquisition

The Dow Chemical Company announced today that on June 30, its Board of Directors approved a restructuring plan which calls for the shutdown of a number of manufacturing assets, including ethylene and ethylene-derivative assets in the Company's basics portfolio.

Consistent with the Company's $1.3 billion synergy commitment related to the acquisition of Rohm and Haas Company, the restructuring plan includes a charge for the elimination of approximately 2,500 positions, which has been previously announced.

Dow will also recognize an impairment charge due to an expected loss on the divestiture of certain acrylic monomer and specialty latex assets, which is required for United States Federal Trade Commission approval of the Rohm and Haas acquisition.

"Consistent with Dow's practice of active portfolio management, we continue to take quick and aggressive action to right-size our manufacturing footprint, particularly in our basics portfolio," said Andrew N. Liveris, Dow chairman and chief executive officer. "These actions are also aligned with our strategic transformation, which focuses on preferentially investing for growth in our performance and advanced materials portfolios. In addition, we are making excellent progress on achieving $1.3 billion in cost synergies from the acquisition, and today's steps demonstrate our speed and determination to deliver these savings."

Specific sites in the Company's Basics portfolio that will be impacted include:

Ethylene Production

Ethylene Derivatives

These shutdowns are in addition to numerous other ethylene-derivative closures that have occurred as part of a restructuring program announced in the fourth quarter of 2008, specifically:

These shutdowns, when taken in total, will reduce the Company's ethylene demand by approximately 30 percent on the U.S. Gulf Coast. As a result, Dow expects to eliminate its purchases of ethylene from the merchant market (approximately three billion pounds annually), improving the Company's cost position while fully integrating ethylene production with internal demand in order to better meet customer needs.

September 10, 2009

OMNOVA to Buy Hollow Sphere Plastic Pigment Product Line from Dow　中空球プラスチック顔料

OMNOVA Solutions Inc. and The Dow Chemical Company have signed an agreement for the sale of Dow's hollow sphere plastic pigment product line to OMNOVA.

The transaction is necessary to meet U.S. Federal Trade Commission (FTC) required divestitures related to Dow's acquisition of Rohm and Haas Company. The agreement comes ahead of the November 27 FTC deadline.

The selection of OMNOVA as the buyer must be approved by the FTC, and the acquisition is subject to normal closing conditions.  The transaction is expected to close in the 4th quarter of 2009.  Terms of the transaction are not being disclosed.

September 14, 2009

SCG-DOW Group Commemorates Thailand HPPO Progress with Stone Laying Ceremony
　PO facility at Map Ta Phut on schedule to start up in 2011

The Dow Chemical Company (Dow) announced today that the SCG-DOW Group, a joint venture between Dow and The Siam Cement Group (SCG), and Solvay Peroxythai Ltd. recently commemorated significant milestones on the hydrogen peroxide to propylene oxide (HPPO) related investments with a foundation stone laying ceremony at the Asia Industrial Estate (AIE) site near Map Ta Phut, Thailand, where the HPPO facility is being built.

The SCG-DOW Group has procured all equipment and entered the initial construction phase on a world-scale propylene oxide (PO) plant, with an anticipated start-up in the first half of 2011. Once complete, the facility will manufacture PO via HPPO technology jointly developed by Dow and BASF, and will have a name plate capacity of 390 kilotons per annum (KTA).

The AIE site will also feature a specialty elastomers plant; a hydrogen peroxide plant built as a joint venture between Dow and Solvay; and power utilities and infrastructure. Nearby, a new liquids cracker, also jointly owned by SCG and Dow, will come on stream in 2010.  The integrated Thailand plants represent a significant increase of the asset base for Dow in Thailand and Dow's largest manufacturing investments in Asia Pacific.

 

January 18, 2010 plasticsnews.com

Dow Chemical agrees to clean up dioxin contamination

Dow Chemical Co. has signed an agreement with the U.S. Environmental Protection Agency and Michigan to evaluate dioxin contamination in the Tittabasassee River and the Saginaw River and Bay and their floodplains.

The agreement also requires Dow to identify cleanup options and "design the remedy that EPA ultimately selects," the federal agency said.

"The agreement spells out tasks and a schedule that Dow must follow," said Richard Karl, Superfund Director for EPA Region 5, which includes Michigan. "While the Superfund work proceeds, Dow must also continue to comply with its Michigan-issued RCRA license."

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Epoch Times Jan 18, 2010

Dow Chemical Ordered to Clean Polluted Michigan Site

Dow Chemical is being ordered by state and federal government entities to clean up rivers it contaminated in Michigan. The U.S. Environmental Protection Agency (EPA) and the state of Michigan have signed an administrative order to make Dow Chemical design and implement a cleanup plan for contamination at a Michigan site.

Dow Chemical’s Midland-based plant has significantly contaminated the area with dioxins, which has spread for 50 miles down the Tittabawassee and Saginaw rivers and into Saginaw Bay. The agreement outlines a series of steps Dow must take in making a comprehensive Superfund evaluation of dioxin contamination in these waterways and their floodplains. It also requires Dow to identify cleanup options as well as design the remedy that the EPA will ultimately select.

"While the Superfund work proceeds, Dow must also continue to comply with its Michigan-issued RCRA license," stated Superfund Director for EPA Region 5 Richard Karl in a press release.

Although Dow admitted responsibility for the pollution, they expressed frustration that the EPA’s Region 5 administrator terminated negotiations so early. They argued that an agreement on a plan going forward would have resulted in dramatically speeding progress toward resolving the situation.

“This was a real opportunity to actually accelerate resolving the situation; now we’re faced with additional barriers and delays,” said Dow’s Senior Vice President David Kepler in a statement.

The EPA and the Michigan Department of Environmental Quality offered a nearly three-month comment period (including an extension) to influence the proposed Superfund administrative order on consent of the chemical company and received comments from more than 60 individuals and organizations.

According to the EPA, the vast majority of the comments were in support of the measure. The administrative order the agencies signed on Jan. 15, 2010, was unchanged from the original draft made in October 2009.

The EPA says that with the agreement signed, the next steps include establishing a segmented approach to the Tittabawassee River and planning a method to address high-use properties along the rivers and the erosion of highly contaminated soil and sediment.

“We are also redoubling our efforts to provide guidance on the science of dioxin health effects to inform cleanup decisions at this site and protect other communities, in Michigan and across the country, facing dioxin contamination,” stated EPA Administrator Lisa P. Jackson in a press release.

March 02, 2010

Dow Announces Sale of Styron Division to Bain Capital for $1.63 Billion

The Dow Chemical Company and Bain Capital Partners, a leading global private equity firm, announced jointly today that they have signed a definitive agreement under which Dow's Styron Division will be divested to an affiliate of Bain Capital for $1.63 billion.  As part of the transaction, Dow has an option to receive up to 15 percent of the equity of Styron as part of the sale consideration.  Additionally, the transaction includes several long-term supply, service and purchase agreements which will generate substantial value for both Dow and Styron.

With the purchase price and the significant long term contracts, Dow will be able to substantially deleverage and achieve an attractive value for the Styron divestment. The transaction is expected to close by August 2010, subject to completion of customary conditions and regulatory approvals.

"This transaction is yet another step in our disciplined approach to portfolio management, and is consistent with both the timeline and value we previously communicated for these assets," said Andrew N. Liveris, Chairman and Chief Executive Officer. "We are committed to further focusing our portfolio by shedding non-strategic assets that can no longer compete for growth resources inside the Company, and in the process generating funds for further debt reduction and liberating resources for Dow's higher growth, higher margin portfolio of technology, market driven businesses."

"We are delighted to embark on a long-term partnership with Dow," said Steve Zide, a Managing Director at Bain Capital. "Dow's culture of global excellence and integrity is well-represented in Styron and its people. We are greatly impressed by the exceptional quality of the Styron business, and look forward to working with our new partners to continue to grow and strengthen Styron's leadership position in the global marketplace."

As a standalone, privately held business, Styron will be a leading diversified chemicals and plastics company with attractive global positions in a related set of markets and a unique product portfolio with a large presence in the styrenics value chain.  Styron brings together a balanced portfolio of plastics, rubber and latex businesses that share feedstocks, operations, customers and end users.  The company will benefit from a leadership position in its two flagship products, polystyrene and latex, as well as global scale, unrivalled customer relationships, and a robust innovation pipeline.

Styron is expected to have approximately $3.5 billion in revenue (based on 2009 data), with 40+ manufacturing plants in all geographic regions, and approximately 1,900 employees. Its businesses serve a diverse customer base in markets such as automotive, appliances, packaging, paper & board, carpet, durables, electronics, optical media, tires, and technical rubber.

Businesses and products in Styron include: Styrenics - Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; and Automotive Plastics including PULSE™ engineering resins, MAGNUM™ acrylonitrile butadiene styrene, INSPiRE™ performance polymers, and VELVEX™ reinforced elastomer. Also included will be some styrene monomer assets.

Dow announced its plan to form Styron and explore divestiture options in July 2009.

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June 17, 2010 Dow

Dow Closes Sale of Styron Division to Bain Capital for $1.63 Billion

The Dow Chemical Company and Bain Capital Partners, a leading global private equity firm, announced jointly today that they have closed the sale of Dow’s Styron Division to an affiliate of Bain Capital. Dow has elected to retain a 7.5 percent equity position in Styron, which is now a privately held, global materials company. Also included in the transaction are several long-term supply, service and purchase agreements between Dow and Styron that will generate substantial additional value for both companies.

“The Styron divestiture is another major step in Dow’s transformation and a strong example of our disciplined approach to portfolio management and business prioritization,” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer. “With the close of this transaction, we have exceeded our goal of divesting $5 billion of non-strategic assets, and we have done so in just five quarters. These divestitures have enabled Dow to both reduce debt and liberate capital and resources for Dow’s higher growth, higher margin businesses.”

"We are excited to see Styron emerge as an independent company. The Styron management team, together with our new partners at Dow, have worked tirelessly to provide Styron with the capabilities to pursue its global growth strategy," said Steve Zide, a Managing Director at Bain Capital. "We are confident that the management team led by Chris Pappas, and all of Styron's employees around the world, will further expand and strengthen the Company's leadership positions with a continued commitment to excellent service to customers and business partners."

Styron is positioned as a leading materials company with global reach and a unique product portfolio, bringing together plastics, rubber and latex businesses that share feedstocks, operations, customers and end users. Styron has approximately $3.7 billion in revenue (based on 2009 data), with manufacturing facilities at 20 locations in 13 countries around the world. Styron has approximately 2,000 employees based in 30 countries worldwide.

Businesses and products included in this transaction are: Styrenics - Polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; Automotive Plastics; and some styrene monomer assets.

Dow announced its plan to form the Styron Division and explore divestiture options in July 2009. A definitive agreement between Dow and Bain Capital Partners was signed and announced in March 2010.

About the Products in Styron

Polycarbonate (PC) is an engineering thermoplastic used in applications such as optical media, electrical and lighting. Styrenic plastics (polystyrene, ABS and SAN) are well known for their performance in an array of applications from packaging and food service, to large appliances, portable appliances, consumer electronics, automotive and building and construction. Synthetic rubber is used in a broad portfolio of products from tires to hoses, conveyor belts and footwear, to specialized high- performance elastomers. Expandable polystyrene (EPS) is typically used in rigid foam products such as heat insulation, packaging, impact sound insulation and drainage. SB and SA Latex are used in paper/paperboard and flooring applications. Automotive plastics are used in many different automotive applications such as instrument panels, mid consoles, door panels, interior trim, seat structures and bumpers.

About Bain Capital

Bain Capital, LLC is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, high-yield assets and mezzanine capital with approximately $65 billion in assets under management. Bain Capital has a team of over 300 professionals dedicated to investing and to supporting its portfolio companies. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 300 companies in a variety of industries around the world. Bain Capital has a long history of investments in industrial businesses, including such leading companies as Innophos, Brenntag, Sensata, SigmaKalon, FCI, Feixiang Chemicals, Novacap, and Himadri Chemicals. Headquartered in Boston, Bain Capital has offices in New York, London, Munich, Hong Kong, Shanghai, Tokyo, and Mumbai.

June 7, 2010 BBC　

Bhopal trial: Eight found guilty of India gas leak

A court in the Indian city of Bhopal has convicted eight people in connection with the gas plant leak that killed thousands of people more than 25 years ago.

The eight face a maximum sentence of up to two years in prison for causing "death by negligence".

Chief judicial magistrate Mohan P Tiwari pronounced the verdict in a packed court room convicting 85-year-old Mahindra, and seven others in the case relating to leakage of deadly methyl isocyanate gas in the intervening of Dec 2 and 3 1984.

They were held guilty under Sections 304-A (causing death by negligence過失致死), 304-II (culpable homicide not amounting to murder), 336, 337 and 338 (gross negligence) of the Indian Penal Code.

However, there was no word on Warren Anderson, the then chairman of Union Carbide Corporation of the US, who was declared an absconder after he did not not subject himself to trial in the case that began 23 years ago.

Others found guilty areVijay Gokhle, the then managing director of UCIL, Kishore Kamdar, the then vice-president, JN Mukund, the then works manager, SP Choudhary, the then production manager, KV Shetty, the then plant superintendent and SI Quershi, the then production assistant.

The sentencing in the case is expected later.

The Union Carbide plant leak was the worst industrial disaster in history.

Forty tonnes of a toxin called methyl isocyanate leaked from the factory and settled over slums on 3 December 1984.

Campaigners say at least 15,000 people were killed within days, and say the horrific effects of the gas continue to this day.

The site of the former pesticide plant is now abandoned.

It was taken over by the state government of Madhya Pradesh in 1998, but environmentalists say poison is still found there.

The eight people convicted include former senior officials of the Union Carbide company, including senior Indian businessman Keshub Mahindra, who was the chairman of the Indian arm of the company when the incident happened.

The sentences are expected to be announced soon.

More than a dozen judges have heard the criminal case since 1987, when India's leading detective agency, the Central Bureau of Investigation (CBI), charged 12 people with "culpable homicide not amounting to murder".

That charge could have led to up to 10 years in prison for the accused.

BHOPAL'S DEATH TOLL
Initial deaths (3-6 December): more than 3,000 - official toll
Unofficial initial toll: 7,000-8,000
Total deaths to date: over 15,000
Number affected: Nearly 600,000
Compensation: Union Carbide pays $470m in 1989

Source: Indian Supreme Court, Madhya Pradesh government, Indian Council of Medical Research

However, in 1996, India's Supreme Court reduced the charges to "death by negligence", carrying a maximum sentence of up to two years in prison if convicted.

Among those charged were Warren Anderson, the chairman of Union Carbide at the time of the incident in 1984.

Campaigners say Bhopal has an unusually high incidence of children with birth defects and growth deficiency, as well as cancers, diabetes and other chronic illnesses.

These are seen not only among survivors of the gas leak but among people born many years later, they say.

Twenty years ago Union Carbide paid $470m (£282m) in compensation to the Indian government.

Dow Chemicals, which bought the company in 1999, says this settlement resolved all existing and future claims against the company.

But according to the International Campaign for Justice in Bhopal, survivors have received an average of only $500 each in compensation.

Union Carbide says neither the parent company nor its officials are subject to the jurisdiction of Indian courts.

ーーー

All eight of the Indian officials charged in connection with the Bhopal gas leak more than 25 years ago have been found guilty by a district court in Bhopal, Indian news channels reported Monday.

The officials were charged with "causing death by negligence," a charge that carries a maximum prison term of two years and is most often used in connection with hit-and-run traffic accidents, according to representatives of the victims. This is the first legal verdict in the long-standing case and will likely be appealed to a higher state court and eventually to the Supreme Court.

At least one of those convicted is a key member of the business world today. Keshub Mahindra, now chairman of Mahindra & Mahindra Ltd., was among those found guilty. A Mahindra spokeswoman for the company said the firm would be issuing a comment later Monday.

Mahindra & Mahindraはインドの自動車製造企業で、インドのコングロマリットの一つ「マヒンドラ・グループ」の中核企業。
1949年にはジープの生産を開始、現在、多目的車(MUV)、 小型商用車(LCV)、オート三輪、トラクターなどを製造・販売している。
仏ルノーとの合弁会社「マヒンドラ・ルノー」を設立、ルノーグループの戦略低価格車ロガンの製造・販売を2007年4月から開始し、乗用車分野への進出を果たした。

December 02, 2010

Dow Announces Plans to Increase Ethane Cracking Capabilities; Reviews Joint Venture Options for Natural Gas Liquids Fractionator

The Dow Chemical Company announced today that it plans to increase ethane cracking capabilities on the U.S. Gulf Coast over the next two to three years, and improve its ethane cracking capabilities by 20- 30 percent in this timeframe.

In addition, Dow announced it is reviewing joint venture options for building a Natural Gas Liquids (NGL) Fractionator精留 to secure this supply of ethane.

Both actions are intended to capitalize on the current favorable supply dynamics in North America, and further bolster the competitive advantage of Dow’s Plastics franchise, as well as its high-margin, downstream performance businesses.

Dow is the world’s largest ethylene producer. The Company plans to use its well-developed infrastructure to participate with producers in fractionation, transportation and storage of NGLs.

Dow produces approximately 55 percent of the Company’s ethylene from ethane, and the Company’s competitive U.S. cost position provides a key strategic advantage for its higher-margin specialty plastics businesses, such as Linear Low Density Polyethylene, as well as its Performance and Advanced Materials businesses.

“Ethane is an advantaged feedstock in the United States and we anticipate a favorable oil to gas ratio to continue,” said Raja Zeidan, Global Business Vice President for Dow Hydrocarbons. “Bringing additional fractionation capacity online and expanding our ethane cracking capabilities will further improve Dow’s feedstock flexibility and competitive positions in the United States. Couple that with our feedstock flexibility in Europe and with our advantaged feedstock positions in the Middle East, Western Canada and Argentina, we truly have a competitive advantage ? evidenced by the strong returns delivered by Dow’s ethylene derivatives this year.”

November 02, 2010

Dow Elastomers Completes EPDM Expansion Project

Debottleneck helps Dow meet growing demand for NORDEL(TM) IP, while maintaining cost-competitive position

The Dow Chemical Company has completed a 25-million-pound debottleneck project at its Plaquemine, La., ethylene-propylene-diene monomer (EPDM) manufacturing site. The expansion will help Dow continue to meet growing EPDM demand among current customers.

"The excellent performance and unmatched processing advantages of NORDEL IP Hydrocarbon Rubber continue to make EPDM an excellent choice," said Luis Cirihal, business director at Dow Elastomers. "NORDEL IP is an important product for Dow Elastomers and our customers. The expansion project is a strategic investment to meet increasing demand while maintaining Dow's cost-competitive position."

NORDEL IP's consistent structure lends itself to easy processing and lot-to-lot consistency. Producers using this EPDM product enjoy better control and precision that yields fewer blemishes, defects and rejects. End-use applications include automotive weather-stripping, automotive hoses and belts, building profiles, footwear soling and general rubber products.

April 21, 2011 Dow

Dow Announces Plans to Fully Integrate and Grow North American Performance Businesses with Shale Gas Liquids

The Dow Chemical Company today announced comprehensive plans to increase the Company’s ethylene and propylene production -- and to integrate its U.S. operations into feedstock opportunities available from increasing supplies of U.S. shale gas in the Marcellus and Eagle Ford shale regions.

“The improved outlook for U.S. natural gas supply from shale brings the prospect of competitively priced ethane and propane feedstocks to Dow ? and the promise of new manufacturing jobs to America,” said Jim Fitterling, Dow executive vice president and president of Corporate Development & Hydrocarbons. “Our plan is to further integrate Dow’s businesses with the advantaged feedstocks, based on shale gas deposits and long-term ethane and propane supply agreements. These actions will strengthen the competitiveness of our Performance Plastics, Performance Products and Advanced Materials businesses, for example the Elastomers product family and the full Acrylates chain, as we continue to capture growth in the Americas.”

Dow Increases Ethylene Supply and Ethane Cracking Capabilities in U.S. Gulf Coast

Dow is currently finalizing plans to increase the Company’s ethylene supply and increase its ethane cracking capabilities at existing U.S. Gulf Coast facilities by:

Dow Increases Propylene Supply

Dow is currently finalizing plans to increase the Company’s propylene supply by:

Dow Pursues Additional Feedstocks from the Eagle Ford and Marcellus Shale Regions

Dow plans to supply the required ethane and propane for these projects through a variety of supply arrangements, including: a possible joint venture fractionator in Texas, supply from existing fractionators, supply from future new fractionators to be built within the industry, and potential supply deals from various shale gas opportunities such as the Eagle Ford and Marcellus shale regions. Dow has signed ethane and propane supply contracts based on the Eagle Ford shale gas and is pursuing several more agreements from this area.

In addition, Dow has signed a Memorandum of Understanding (MOU) with a wholly-owned subsidiary of Range Resources Corporation (NYSE: RRC), stating plans to enter into a long-term supply agreement for the delivery of ethane from the Marcellus Region in southwest Pennsylvania to Dow’s existing operations in Louisiana.

“As the largest consumer of propylene in North America, Dow has a unique opportunity to invest aggressively for on-purpose propylene production from propane. Additionally, Dow is the largest producer of ethylene in North America, which provides capabilities to increase our use of ethane in existing ethylene production units ? and to grow,” Fitterling said. “All of these investments, combined with Dow’s planned agreement with Range Resources, will dramatically increase our capability to consume ethane, while maintaining our industry-leading feedstock flexibility.”

About Range Resources Corporation

Range Resources Corporation is among the leading independent natural gas companies operating in the United States through subsidiaries in both the Appalachia and Southwest regions of the country. The Company has pioneered the Marcellus Shale development since 2004. Range has a dominant position in the southwestern portion of the Marcellus Shale development associated with the liquid-rich area which will be the source of the ethane production. Range is currently the largest producer of natural gas liquids in Appalachia. Range pursues an organic growth strategy at low finding costs by exploiting a multi-decade inventory of drilling opportunities. Range replaced with the drill-bit 840% of its production in 2010 with new proved reserves at a finding and development cost of $0.70 per mcfe primarily from its Marcellus holdings. At December 31, 2010, Range had 4.4 Tcfe of total proved reserves, a 42% increase over the prior year and a 25% increase in proved developed producing reserves. In addition, Range estimates 35 to 52 Tcfe in net unrisked resource potential from its unbooked drilling inventory and emerging plays.

June 6, 2011　Bloomberg　

Dow, Aksa of Turkey in Talks to Form Carbon Fiber Joint Venture

Dow Chemical Co. (DOW), the largest U.S. chemicals manufacturer, and Aksa Akrilik Kimya Sanayii (AKSA) AS, a Turkish maker of synthetic acrylic fibers, are in talks to form a joint venture to make carbon fiber and derivatives, the companies said.

Dow and Istanbul-based Aksa signed an accord to “examine opportunities to develop and market a broad range of products and technical service offerings in the carbon fiber-based composites industry,” the companies said today in a statement.

The manufacturers will work on products aimed at “increasing the energy capture of wind turbines, improving the fuel economy of automobiles, and extending the life of roads and buildings,” Andrew Liveris, chairman and chief executive officer of Midland, Michigan-based Dow, said in the statement.

Aksa planned to double its annual carbon fiber production to 3,000 tons in 2010, Chairman Mehmet Ali Berkman said last year. That compares with total global carbon fiber production capacity of 30,000 tons a year, he said. The fibers are used in ships, planes, wind turbines, sports equipment and other products.

東レ　17,900
東邦テナックス　13,500
三菱レイヨン　8,150
小計　39,550
　2006/9/9 炭素繊維

Aksa is the world’s largest producer of acrylic fiber, with more than 13 percent of the worldwide market, the Turkish company said in the statement. The manufacturer had revenue of about $850 million last year and expects to exceed $900 million this year, it said.

ーーー

June 06, 2011 Dow

Dow and Aksa Sign Memorandum of Understanding to Form Integrated Carbon Fiber and Derivatives Joint Venture
　　Business to offer carbon fiber and derivatives to growing energy, transportation and infrastructure markets

The Dow Chemical Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii (Aksa) today announced a Memorandum of Understanding (MOU) with the intent to form a joint venture to manufacture and globally commercialize carbon fiber and derivatives.

Through this agreement, both companies will work together to explore opportunities to create fully-integrated production facilities for the manufacture and global supply of carbon fibers and derivatives. The companies will examine opportunities to develop and market a broad range of products and technical service offerings in the carbon fiber-based composites industry.

“This new partnership with Aksa is another example of how Dow continues to advance its innovation agenda and broaden our down-stream, integrated solutions offering,” said Dow Chairman and CEO Andrew N. Liveris. “Together, Aksa and Dow will apply science, world-class manufacturing capabilities and technical expertise to deliver innovative solutions that address some of the world’s most pressing challenges such as increasing the energy capture of wind turbines, improving the fuel economy of automobiles, and extending the life of roads and buildings.”

Very strong and lightweight, carbon-fiber based materials are used in a variety of applications in many growth industries, such as wind energy, transportation, and infrastructure, where weight savings, durability and energy efficiency are key performance factors.

“By partnering with a global leader such as Dow, we will further strengthen Aksa’s leadership position in both our local community and global markets. Aksa has been a pioneer at introducing new products and technologies and with this partnership will accelerate our pace in the future. In addition to the continued efforts of our dedicated, hard working, competent employees, we also count on strong contributions of all our partners in the process chain, including our governments, to create and meet the demand for this interesting new technology,” said Mehmet Ali Berkman, Chairman of the Board of Aksa. “This technology race to develop carbon fiber composites will offer improved products and solutions for the betterment of mankind.”

“By partnering together, Aksa and Dow will create the carbon fiber composites industry’s only large scale, full-service, fully integrated solution provider serving the growing needs of the world’s leading industries,” stated Heinz Haller, Dow’s Executive Vice President and Chief Commercial Officer. “Current megatrends underpin increasing demand for alternative energy resources as well as safer, more efficient vehicles. Therefore, innovative technologies that deliver strong, light-weight materials are in great demand. This partnership combines the individual strengths of each company to provide the market with better solutions while also helping solve some of the world’s most pressing challenges.”

“Today, the fiber composite market is experiencing tremendous growth on a global scale and, customers are not only demanding products that perform better, they need suppliers that combine reliability, technical expertise and affordability,” said Mustafa Yilmaz, Aksa Board Member. “As the world’s largest producer of acrylic fibers and a carbon fiber producer since 2008, Aksa is very excited about the opportunity to partner with Dow to explore large, downstream opportunities, and expand our carbon fiber-based product offering world-wide. By combining our technical and market knowledge and our significant positions in industry, we will accelerate the development and commercialization of these new products and at the same time raise the industry standard for performance.”

About AKSA

AKSA Akrilik Kimya Sanayii is the world’s largest producer of acrylic fiber with 308.000 mt per year capacity and more than 13% market share of the worldwide market. Products include acrylic textile fibers, technical fibers, and carbon fiber. Aksa’s mission is to be the choice for acrylic-based textiles and technical fibers, to work efficiently and in harmony with the environment, to be innovative and customer focused. Aksa has around 1,000 employees working at its production site in Yalova Turkey and offices in Istanbul. Aksa’s turnover in 2010 was more than US$850 million, and is expected to exceed $900 million in 2011. Aksa is a member of the AKKÖK Group of Companies which is comprised of 40 companies operating in Turkey’s chemical, energy, real estate and textile sectors. The Group has more than 4.000 employees. In 2010, the Group’s turnover was more than US$2.5 billion. More information about Aksa can be found at www.aksa.com.

Akrilik Kimya Sanayi Anonim ?irketi is a accompany affiliated with the AKKÖK Group of Companies and was established in 1968. AKSA began to produce fiber in 1971 at its factory in Yalova, with a capacity of 5000 tons/year. In 1974 AKSA began to increase its capacity and reached a capacity of 100,000 tons in 1986 , 200,000 tons in 1997 and finally  300,000 tons in 2007. Today our annual production capacity is 308.000 tons. AKSA is the “world's largest acrylic fiber producer under a single roof”.

Without receiving any external support and solely with the effort  of its technical staff, AKSA began in 2006 to develop a technology of its own ito manufacture carbon fiber. Today this study has reached to a production phase.

--------------------------

December 20, 2011 Dow　

Dow and Aksa Sign Joint Venture Agreement for Carbon Fiber and Derivatives

・Business to offer integrated carbon fiber composite solutions to growing energy, transportation and infrastructure markets globally
・JV expected to invest up to $1 billion U.S. dollars within 5 years; potential to create up to 1,000 jobs in Turkey

2011/6/17　SABIC、カーボンファイバーの技術導入；DowもJV設立の覚書　

The Dow Chemical Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.Ş.  today signed a definitive agreement to form a joint venture to manufacture and commercialize carbon fiber and derivatives.

The joint venture will develop and globally market a broad range of products and technical service support in the rapidly expanding carbon-fiber based composites industry. Very strong and lightweight, carbon-fiber based materials are used in a variety of applications in growth industries such as wind energy, construction, transportation, and infrastructure, where weight savings, emissions reduction, durability and energy efficiency are key performance factors. Currently, the carbon fiber composites industry is estimated at $10 billion U.S. dollars globally and is expected to reach $40 billion US dollars by 2022.

Under terms of the agreement, Dow and Aksa will each hold a 50 percent stake in the joint venture. Following initial equity investments from the two companies, the JV will finance its growth through cash flow from operations and financial institutions. Total investment in the project, including third party investments, is expected to reach $1 billion U.S. dollars in five years and create up to 1,000 employment opportunities.

The JV will expand on Aksa’s existing carbon fiber production assets in Yalova, Turkey, and will capture growth by creating a large-scale, integrated production capability for the manufacture and supply of advanced carbon fiber technologies. The venture will have a particular focus on bringing solutions to market that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of markets.

Dow Chairman and CEO Andrew Liveris said, “This partnership with Aksa is another strong example of how Dow is advancing its innovation and growth strategy, and demonstrates our unwavering commitment to invest in high-value, innovation-rich sectors through strategic partnerships. Together our companies will apply science, world-class manufacturing capabilities and technical expertise to deliver innovative solutions that address some of the world’s most pressing challenges, such as increasing the energy capture of wind turbines, improving the fuel economy of automobiles, and extending the life of roads and buildings.”

Akkök Group of Companies Chief Executive Officer and Aksa Board Chairman Mehmet Ali Berkman said, “Making Turkey the second biggest acrylic fiber market in the world with its leading position in technical fiber and production capacity in acrylic fiber, AKSA has achieved an important position in the international market with the carbon fiber. Carbon fiber composites, which will replace metal as the material of the future, have significant importance for fundamental industries in Turkey such as transportation (automobile, high-speed train, vessels, heavy vehicles, etc.), wind energy technologies and construction, particularly for earthquake-resistant buildings. The recognition of carbon fiber and carbon fiber composites within the scope of strategically important industries will enable Aksa and Dow to expand their joint investment targets and create significant economic value and employment for Yalova. In addition, this cooperation will contribute to 2023 targets of the Government of Republic of Turkey by creating significant added value and employment in energy efficiency, renewable energy, infrastructure investments and increasing exports.”

Executive Vice-President and Chief Commercial Officer Heinz Haller said, “This joint venture will leverage Dow’s expertise in composites technology, formulation, and technical service as well as market knowledge and channels. Upon completion, the joint venture will be the carbon fiber composites industry’s only large-scale, full-service, integrated solution provider, serving the emerging needs of the world’s leading industries. With this agreement, we aim to create competitive advantage in the global markets in which carbon fiber composites are used.”

İlker Aycı, President of Turkey’s Investment Support and Promotion Agency, said, “This joint venture represents advancement for Turkey’s industrial and economic diversification into strategically important critical industries aimed at providing value-added solutions to significant and expanding regional and global markets. We are pleased about the formation of an enterprise that will meet the increasing demand for fiber composite technology and bring an opportunity for significant impact on the expansion of value-added exports.”

The joint venture agreement was signed today in a meeting attended by Minister of Industry and Trade Nihat Ergün, President of Turkey’s Investment Support and Promotion Agency İlker Aycı, Dow Executive Vice President and Chief Commercial Officer Heinz Haller and Akkök Group of Companies Chief Executive Officer and Aksa Board Chairman Mehmet Ali Berkman.

AKSA Akrilik Kimya Sanayii A.Ş.  is the world’s largest producer of acrylic fiber with 308,000 tons per year capacity and more than 14,2 percent share of the worldwide market. Products include acrylic textile fibers, technical fibers, and carbon fiber. Aksa’s mission is to be the choice for acrylic-based textiles and technical fibers, to work efficiently and in harmony with the environment, to be innovative and customer focused. Aksa has around 1,000 employees working at its production site in Yalova Turkey and offices in Istanbul. Aksa’s turnover in 2010 was more than US$850 million, and is expected to exceed $900 million in 2011. Aksa is a member of the AKKÖK Group of Companies which is comprised of 15 companies operating in Turkey’s chemical, energy, real estate and textile sectors. The Group has more than 3,200 employees. In 2010, the Group’s turnover was more than US$2.7 billion. More information about Aksa can be found at www.aksa.com.

--------------------------

June 29, 2012 Dow                            Talks

Dow and Aksa Announce Formation of Joint Venture for Carbon Fiber and Derivatives

DowAksa to focus on solutions that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of industrial markets
Emphasis to be on integrated carbon fiber composite solutions for growing energy, transportation and infrastructure markets globally

The Dow Chemical Company, through its wholly-owned subsidiary Dow Europe Holding BV, and Aksa Akrilik Kimya Sanayii A.Ş., a world-leading acrylic fiber company, today announced the official formation of DowAksa Advanced Composites Holdings BV (DowAksa), a joint venture (JV) to manufacture and commercialize carbon fiber and derivatives. Aksa and Dow had previously signed a definitive agreement to form the JV on December 20, 2011.

DowAksa will develop and globally market a broad range of products and technical service support in the rapidly expanding carbon-fiber composites industry. The JV will have a particular focus on bringing solutions to market that reduce overall costs, thereby enhancing economics and driving adoption in a broader array of markets. Emphasis will be on bringing cost-effective solutions to industrial market applications for energy, transportation, and infrastructure globally.

Very strong and lightweight, carbon-fiber based materials are used in a variety of applications in growth industries, where weight savings, emissions reduction, durability, and energy efficiency are key performance factors. Currently, the carbon fiber composites industry is estimated at USD $10 billion globally and is expected to reach USD $40 billion by 2022.

Aksa’s carbon fiber which is the output behind the R&D’s success, has been being produced since 2009 in the Yalova Factory. The JV will expand on existing carbon fiber production assets in Yalova, Turkey, and will capture growth by creating a large-scale, integrated production capability for the manufacture and supply of advanced carbon fiber technologies.

Aksa and Dow each hold a 50 percent stake in the JV, which will finance its growth through cash flow from operations and financial institutions.

Dow Chairman and CEO Andrew Liveris said, “The formation of this JV is another demonstration that Dow is advancing its innovation and growth strategy and our commitment to pursue high-value, innovation-rich sectors through strategic partnerships. Together our companies will apply science, world-class manufacturing capabilities and technical expertise for innovative solutions that address pressing global challenges, such as improving the fuel economy of automobiles, and extending the life of roads and buildings.”

Akkök Group of Companies Chief Executive Officer and Aksa Board Chairman Mehmet Ali Berkman said, “Already a world leader in acrylic fiber, Aksa took steps in 2011 in the carbon fiber sector with the target of increasing market share through investment in manufacturing capacity and productivity. With the formation of the joint venture, we are pleased that our carbon fiber technologies and production capabilities in Turkey will be essential to DowAksa’s future as world leader in advanced carbon fiber and derivatives. Carbon fiber composites, which are expected to replace metal as the material of the future, have significant importance in Turkey and around the world for fundamental industries such as transportation (automobile, high-speed train, vessels, heavy vehicles, etc.), wind energy technologies and construction, particularly for earthquake-resistant buildings.”

Executive Vice-President and Chief Commercial Officer Heinz Haller said, “This joint venture leverages Dow’s expertise in composites technology, formulation, and technical service as well as market knowledge and channels. Upon implementation of the joint venture strategy, DowAksa will be the carbon fiber composites industry’s only large-scale, full-service, integrated solution provider, serving the emerging needs of the world’s leading industries and will have competitive advantage in the global markets in which carbon fiber composites are used.”

AKSA Board of Directors Member and Akkök Executive Board Member Mustafa Yılmaz emphasized that the cooperation made with Dow was very significant in terms of creating new business opportunities. “AKSA functions as a reliable business partner for market and business world stakeholders that possesses technical expertise and provides better performance and economical advantage. While combining the market and technical knowledge of both companies with this joint venture we will also provide the carbon fiber and composite industry with higher performance products. This cooperation will also make positive contributions towards the growth of the composite industry in our country and our region.”

2011/7/27 Braskem

Braskem becomes the leading polypropylene producer in North America
The acquisition of the Dow Chemical Polypropylene Business, including plants in the USA and Europe, expands Braskem´s global industrial footprint

Braskem, the leading resin producer in the Americas, announced the acquisition of the Polypropylene Business from The Dow Chemical Company for US$323 million. This transaction represents an important step in Braskem’s growth strategy in the Americas and consolidates its polypropylene leadership in the U.S.

The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 2.3 billion pounds. The plants in the U.S. are located at Freeport, TX and Seadrift, TX, and will increase Braskem’s polypropylene capacity by 50% in the region to an annual production capacity of 3.1 billion pounds.

2010/2/3　Sunoco、ポリプロ事業をブラジルのBraskemに売却

Sunocoは2月1日、子会社Sunoco ChemicalsのPP事業をブラジルのBraskemに売却する契約を締結したと発表した。現金350百万ドルでの売却で、必要な承認を得て、3月末までに売却を完了する。

対象プラントはペンシルベニア州Marcus Hook、テキサス州La Porte、ウエストバージニア州Nealにある3つで、合計能力は95万トン、米国全体のPP能力の約13％を占める。PittsburghにあるR&Dセンターも売却する。
なお、Sunocoは昨年春にテキサス州Bayportの能力18万トンの工場を閉鎖している。

このうち、La PorteとNealは同社が2000年に三菱商事から買収した旧Aristech Chemical のプラント。
Marcus Hookは元はSunoco とBAR-L のJVの Epsilon Products のプラント。

The two plants located in Germany, at the petrochemical complexes of Wesseling and Schkopau, have annual capacity of 1.2 billion pounds of polypropylene.

"The acquisition of Dow’s assets consolidates our leadership in polypropylene in the U.S., the largest thermoplastic resins market, and it also enhances our current position in Europe, an important market for our biopolymers strategy," said Braskem’s CEO Carlos Fadigas. "In addition, as our 2nd acquisition in the U.S., this transaction will enable Braskem to capture approximately US$140 million in synergies (net present value) through a more diversified portfolio, a more leveraged fixed cost base and working capital, logistics and supply optimization," he added.

The transaction is expected to close by the third quarter 2011 pending regulatory approvals.

Braskem remains committed to its 2020 strategic vision to become the world leader in sustainable Chemistry, innovating to better serve people.

---

Dow

The Dow Chemical Company announced today that it has signed a definitive agreement under which Dow’s global Polypropylene business will be divested to Braskem for a total enterprise value to Dow of $340 million, comprised of $323 million cash purchase price plus other cash and contingency assumptions of $17 million. Enterprise value multiple to Dow is 6.7x EBITDA(1). Dow expects to report a gain on this divestment, and the transaction is expected to close by the end of the third quarter 2011, pending regulatory approval. In addition to this transaction, the two companies will continue to evaluate potential future collaborations on growth opportunities in connection to their strategies.

“This divestiture is yet another strong example of Dow’s disciplined and ongoing approach to portfolio management and is directly aligned with our strategy to transform our Performance Plastics franchise to focus on downstream, technology-differentiated solutions,” said Andrew N. Liveris, Dow's Chairman and Chief Executive Officer. “This business has delivered historic margins that do not meet our expectations moving forward and is no longer core to Dow’s strategy. We are shifting our Plastics portfolio from a commodity focus to that of a performance focus. This divestment is directly in line with that strategy, and allows us to continue to focus on our three main priorities: retiring debt, remunerating shareholders and investing in our innovation agenda so that we deliver consistent earnings growth.”

The divestiture includes Dow’s polypropylene manufacturing facilities at Schkopau and Wesseling, Germany, and Freeport and Seadrift(2), Texas. Also included are inventory, business know-how, certain product and process technology and customer contracts and lists.

Approximately 200 employees are expected to transition employment status to Braskem at transaction close. Dow’s Polypropylene Licensing & Catalyst business and related catalyst facilities are excluded from the scope of the transaction.

Under terms of the purchase agreement, Braskem will honor customer and supplier contracts and related agreements. Both companies are committed to working together for a seamless transition for all stakeholders.

1 EBITDA is defined as earnings (i.e., “Net Income”) before interest, income taxes, depreciation and amortization.

2 The Seadrift site is owned by Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company.

August 22, 2011 Dow

Qinghai Salt Lake Industry, Co. Selects UNIPOL™ Polypropylene Technology for PP Project

　　UNIPOL PP Process Technology chosen for simplicity, low investment cost and broad product range
　　Popularity for UNIPOL PP Process Technology in China continues to grow

The Qinghai Salt Lake Industry Co. 青海塩業股份　has selected UNIPOL™ Polypropylene Process Technology from The Dow Chemical Company (Dow) for its new 160 KTA polypropylene unit. The unit will provide polypropylene as part of Qinghai’s integrated magnesium metal project to produce homopolymers, random copolymers and impact copolymers.


マグネシウム

ダウ法　
海水に石灰乳を加えて水酸化マグネシウムを沈殿させ、次に塩化水素を加えて塩化マグネシウムとしてから脱水処理した含水塩化マグネシウムを原料とします。これを電解し、マグネシウムと塩化水素を生産する方法。(米　Dow Chemical Co.)

新電解法
海水を浄化と濃縮することにより良質の塩化マグネシウムを作り、脱水してから電解をする方法。

ピジョン法
焼成ドロマイトとケイ素鉄との混合ペレットを高温真空で加熱し、ケイ素の還元作用でできたマグネシウム蒸気を冷却部で凝結させる方法。

The world's production of metal magnesium currently adopts two methods: the Pidgeon process and the electrolytic process. As the Pidgeon process features a number of advantages including smaller investment, lower cost, shorter construction span and easier control, it has become the globally dominant method, which is adopted by all Chinese magnesium producers.
In contrast, the electrolytic method entails the utilization of anhydrous magnesium chloride as its feed stock, the preparation of which involves knocking off the crystalline water in bischofite at harsh operating conditions, resulting in severe corrosion. Extended studies on resolving this issue have been conducted for years in China, but no industrial application of the electrolytic process has been witnessed so far.
 

Qinghai Province is known for its huge deposits of magnesium chloride resources. ISL strives to boost the development of novel processes for producing metal magnesium using salt lake magnesium chloride resources. The institute initiated the key provincial project of Study on a Clean Process for Producing Metal Magnesium from Salt Lake Magnesium Chloride in 2008. The project involved preparing the lightest structural metal–magnesium, which has a much promising outlook of applications, using salt lake magnesium chloride and industrial by-product lime, whereby a novel proprietary process has been developed and consolidated by one patent grant and another pending application.

The method circumvents the huge emission of gaseous pollutants such as carbon dioxide and sulfur oxides characterized by conventional Pidgeon process, by synthesizing its intermediate raw material calcined dolomite. Thus, clean production of metal magnesium by the improved Pidgeon process can truly be realized. Besides, the calcination temperature for calcined dolomite has been greatly lowered and the reduction time substantially shortened, thereby meeting the mechanism of the circular and low carbon economy. The process can produce magnesium ingots meeting the (GB/T3499-2003) Mg9995 standard, as well as 99.99% high-purity magnesium.

“We’re excited to have Qinghai Salt Lake Industry Co. as a new licensee,” said Tracy Cleckler, global commercial director, Dow Polypropylene Licensing and Catalysts business. “The plastics market in China is expanding and this new license confirms the interest in using advanced polypropylene process and catalyst technology to produce differentiated resins for a variety of applications.”

Qinghai Salt Lake Industry Co. license is eighth licensee of UNIPOL PP Technology overall in China. Qinghai Salt Lake Industry Co. is the largest salt lake resources development enterprise and potassium chloride base in China with a wide range of products including potassium carbonate, potassium nitrate and potassium metal. As part of the magnesium metal project, it will utilize coal as feedstock to produce ethylene and propylene through coal gasification, then use the ethylene and propylene as feedstock for the polypropylene unit.

“With UNIPOL PP Process Technology we are able to meet growing market demand for polypropylene in China,” said the project director of polypropylene for Qinghai. “We have chosen UNIPOL because it’s one of the licensors with the most advanced propylene process technology available and offers the ability to produce the broadest spectrum of products in the world.”

Installation at Qinghai Salt Lake Industry Co. is scheduled to start in 2012, with start-up expected in the second half of 2013.

Currently, there are 46 operating lines worldwide using UNIPOL™ Polypropylene Technology. The UNIPOL polypropylene process is an all gas-phase process for producing the broadest range of polypropylene resins. The simple design is consistent in terms of product quality and energy efficiency, requiring no equipment for handling, separating or recycling solvents. The system’s fluidized-bed reactors and high performance CONSISTA™ Catalyst Systems and SHAC™ Catalyst Systems give manufacturers the flexibility to produce homopolymers, random copolymers and impact copolymers.

Resins produced by UNIPOLTM Polypropylene Technology from Dow account for 17 percent of global polypropylene output. Polypropylene is a versatile plastic used in packaging, durable goods, automotive parts, non-wovens, fibers and consumer applications.

Qinghai Province lies in the northeastern part of the Qinghai-Tibet Plateau. The Caidamu Basin of Qinghai is abundant in mineral and saline resources, and the Chaka Salt Lake ( with reserves of 450 million tons) and the Keke Salt Lake (with reserves of 1 billion tons), lying in the eastern part of the Basin, are very famous for their halite which contains more than 96% sodium chloride.

Qinghai Salt Company Ltd. established in April, 2000 with its former body being Qinghai Salt Industrial Company in 1950, is a main body enterprise in Qinghai Province and it is an integrated company with salt production, transportation and marketing, and a state-appointed salt production enterprise that has been listed as one of the State Top One Hundred Enterprises in Salt Exploitation and Manufacture. Currently, there are more than 1,200 employees working for the company and the company consists of 5 propriety subsidiary companies, 2 share subsidiary companies and 3 straight subsidiary companies.
The main products of the company fall into three series, namely industrial salt, edible salt and Tibet Peru purple azo dye salt. These three series of products are further divided into more than 50 types. The “Keke” and “Haishen”-branded saline salts are the provincial name brand products. The company has an annual comprehensive productivity of 2,500,000 m/t of all salt types. Its saline salt, which contains inorganic mineral substances of more than 20 types and amino acid of more than 8 types as well as various trace elements necessary for human body, is greatly favored by consumers for its purely white color and really tasty flavor. Chaka Saline Lake and Keke Saline Lake, the company’s major salt production areas, are the first state standardized organic food raw material production bases. The products are sold not only in the other 12 provinces, municipalities and autonomous regions all over the country, but also exported to some countries and regions such as Hong Kong, Japan, Mongolia, South Korea, Singapore, etc. Moreover, the company has passed the authentication of ISO9000 Quality Control System.

August 23, 2011

Dow, Lehigh partner to develop sustainable tyre rubber

Specialty chemical and advanced materials manufacturer Dow Chemical Company and Lehigh technologies, manufacturer of sustainable, micronised rubber powders, have announced their intention to collaborate in order to develop sustainable materials for the tyre industry. Under this partnership, the two companies will combine proprietary technologies to create modified rubber particles, a programme that will combine Dow's expertise in polymer chemistry with Lehigh's strength in sustainable rubber compound development and testing.

"This collaboration is a great opportunity to continue leveraging our latex polymer technology for a sustainable cause,” said Colin Gouveia, general manager, Dow Construction Chemicals. “Dow's 2015 Sustainability Goals include a focus on technologies that are advantaged by sustainable chemistry and this project is anchored in that same commitment. Further, we're excited to work with Lehigh's unique market understanding and application expertise to develop solutions that bring value to the marketplace."

Lehigh Technologies states that its proprietary manufacturing process takes tyre and other post-industrial rubber materials and "upcycles" them into micron-scale, high quality, sustainable powders that are compatible with customers' existing formulations, making it easy to integrate them into new or existing products. The company adds that these sustainable powders help tyre makers achieve sustainability goals while helping to manage the high cost of non-renewable raw materials.

To-date, more than 100 million tyres containing Lehigh's micronised rubber powder have been manufactured, and in June 2011 the company launched its industry-wide ‘Road to One Billion Campaign’ to put one billion tyres manufactured with sustainable materials on the road. "Our primary customer base, the world's leading tyre companies, has been requesting advanced technologies to enable increased sustainable content in tyres,” said Dr. Alan Barton, chief executive officer of Lehigh Technologies. “The Dow-Lehigh research programme is part of a broader technology programme at Lehigh, aimed at providing sustainable solutions without compromise. Our objective is to have one billion tyres on the road manufactured with our alternative material - our collaboration with Dow is a critical step in realising this significant milestone."

The partnership combines Dow’s polymer chemistry with Lehigh’s sustainable, micronized rubber powders, or MRPs.

Dow and Lehigh will combine proprietary technologies to modify the rubber particles with the goal of creating more sustainable tires.

Lehigh is backed by several big name venture capital firms, including Kleiner Perkins Caufield & Byers, Index Ventures and NGP Energy Technology Partners.

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Lehigh Technologies is a green materials company that is helping solve the important environmental problem of end-of-life tires.

We turn this problem into a technological, sustainable solution that is used in a wide variety of consumer and industrial applications, such as high performance tires, consumer goods, construction materials, and more. This 3rd-generation technology, called Micronized Rubber Powder (MRP), is versatile, durable, technically advanced, and made in an environmentally-friendly way. We help our customers succeed with green because our MRPs deliver performance, lower costs, are clean, environmentally safe, and increase the sustainability factor of our customers’ products.

Founded in 2003 and manufacturing since 2006, Lehigh Technologies is a leading green materials manufacturer that turns end-of-life tire materials and other post-industrial rubber into micronized rubber powders (MRP) that are used in a wide range of industrial and consumer applications, including plastics, high performance tires, consumer goods, coatings & sealants and construction materials. Lehigh Technologies is a World Economic Forum 2010 recipient of The Technology Pioneer Award for its visionary leadership and transformational technology.

At over 100 MM lbs/year in capacity, Lehigh Technologies has the largest known plant capacity dedicated to manufacturing MRP and brings production sophistication to the green materials market, employing state of the art manufacturing processes. Lehigh’s cryogenic turbo mill plant is ISO9001 and ISO14001 certified and employs the highest EHS standards.

 

Lehigh Technologies社は米国のジョージア州に本社をもち、独自の特許技術である極低温粉砕法を用いて古タイヤから超微粒エラストマーパウダーを製造しています。

Lehigh’s commitment to helping solve the environmental challenge of tire waste material was recently acknowledged by The World Economic Forum, naming the company a 2010 Technology Pioneer. This annual award is given to companies involved in the development of life-changing technology that has the potential for long-term impact on business and society.

Lehigh Technologies’ PolyDyne™ and MicroDyne™ lines of sustainable, micronized rubber powders (400 microns to 50 microns) are produced through a cryogenic turbo mill - an innovative, patented cryogenic process that is unique in the industry.

 

September 28, 2011 Dow

Dow and K2 Pure Announce Start-Up of Chlor-Alkali Facility at California Site

 State-of-the-art facility will produce bleach for municipal water treatment and key raw materials for Dow Agrosciences
 New facility enables economic, environmental and societal benefits
 Start-up celebrated at Pittsburg, California site

The Dow Chemical Company and K2 Pure Solutions today celebrated the successful start-up of a new chlor-alkali plant at Dow’s Pittsburg, California site. The new state-of-the-art manufacturing facility will produce bleach 漂白剤 to serve municipal water treatment facilities in Northern California. In addition, the new plant will supply Dow’s Pittsburg operations with chlorine for the manufacture of crop protection products and other materials. The companies celebrated the plant opening by breaking ground for a new commemorative fountain which will symbolize the successful relationship between the two companies.

K2 Pure built and operates the new plant at the Dow Pittsburg, California site. As part of their agreement, K2 Pure is leasing an additional facility to Dow, which K2 Pure operates to generate chlorine for use by Dow via pipeline.

“This new facility has the right scale, right location and right solutions to create value for our customers, while giving us the opportunity for future growth by providing secure, local, reliable and competitive supply,” said Gambrell. “This facility is very much in line with our equity-light strategy – a key component of Dow’s transformation into an earnings growth company.”

The project, including both facilities, has an annual capacity of 460 million pounds of chlor-alkali products. K2 Pure utilizes salt-to-bleach technology, which uses salt, water and electricity as the principle raw materials necessary to produce bleach and chlor-alkali products. Additionally, with the major investment in state-of-the-art fuel cells, K2 Pure will recycle 100 percent of the hydrogen from the plant and re-use it to create clean energy that can help power the facility without the emission of carbon dioxide, a greenhouse gas.

About Dow’s Pittsburg Operations

The Dow Chemical Company purchased the Pittsburg facility in 1939 from the Great Western Electrochemical Company. The Pittsburg facility produces a variety of personal care and crop protection products. The site’s sustainability efforts include: a nationally-recognized, award-winning Wetlands Preserve; the largest solar farm at any Dow site; and a product offering recognized by the U.S. Environmental Protection Agency for environmentally-friendly properties.

About K2 Pure Solutions

K2 Pure Solutions manufactures products essential to modern life through environmentally sustainable and Inherently Safe Technology.

K2 Pure Solutions helps provide an answer to eliminating the need to transport chlorine for water purification and disinfection by deploying and funding a North America wide network of state-of the-art facilities utilizing inherently safe technology. K2 Pure Solutions’ facilities will mitigate the potential environmental, security and operational risks associated with the transport of chlorine for water treatment and other industries by producing exceptionally pure bleach, caustic soda and other chlor-alkali products using only salt, water and electricity in the most economically viable manner.

K2 Pure Solutions was founded by David Cynamon and Howard Brodie, the founders of KIK Custom Products, North America's largest contract manufacturer of private label household bleach, personal care and household cleaning products. K2 Pure Solutions also includes Centre Partners among its partners; a leading middle market private equity firm with offices in New York and Los Angeles. David Cynamon and Howard Brodie have partnered with Centre Partners since 1997. For more information visit: www.k2pure.com.
 

October 5, 2011 RubberWorld

Dow studying plan for EPDM plant

Dow Chemical will initiate a feasibility study for the construction of a new world-scale plant for the production of metallocene ethylene propylene diene monomer (EPDM), sold under the trademark of Nordel IP Hydrocarbon Rubber. The new facility is expected to set the standard in cost and efficiencies by incorporating the use of Dow’s newest proprietary catalyst technology and production via Dow’s solution process. The intent of the feasibility study is to identify potential partners and locations for this new EPDM production facility. “Nordel IP will continue to be a strategic part of the Dow Elastomers portfolio both now and into the future,” said Kim Ann Mink, general manager, Dow Elastomers. “The new facility will position Dow to meet the increasing global demand for EPDM by offering high performance products that serve key automotive, building and construction, and consumer markets; maintain Dow’s cost competitive position; and demonstrate the company’s commitment to invest in specialty products that bring performance advantages to the marketplace.” End-use applications for Nordel IP include automotive weatherstripping, automotive hoses and belts, building profiles, footwear soling and general rubber products.

December 05, 2011　Dow　

Dow and Jilin Connell Sign LOI to Strengthen Integration of Dow’s North American Polyurethanes Franchise

Dow Polyurethanes, a business group of The Dow Chemical Company and a leading producer of methylene diphenyl diisocyanate (MDI), today announced the signing of a Letter of Intent (LOI) with Jilin Connell Chemical Industry Co., Ltd.吉林康乃尓化学, a subsidiary of Jilin Connell Group, aimed at providing U.S. Gulf Coast aniline supply for growth in our Polyurethanes business. Jilin Connell Group, a privately-held company, was formed in 1991. Its subsidiary, Jilin Connell Chemical Company (Jilin Connell), is the top merchant aniline producer and distributor in China and has announced expansion plans that would position it as the largest in the world.

Dow operates the largest single-train crude MDI plant in the world today from its Freeport, Texas site; therefore, competitive U.S. aniline supply is critical to meet our customers’ needs in a variety of markets and applications, including energy efficient rigid and spray foam insulation solutions for appliances, building and construction; lifestyle-enhancing molded and viscoelastic foams for furniture, bedding and automotive applications; and other adhesive and coating systems for footwear, fibers, etc. The LOI with Jilin Connell concerns the exploration of opportunities for future technical and commercial collaboration in the industrial production of aniline. Discussions include plant location options such as the possibility of Jilin Connell building a fence line plant at Dow’s site in Freeport.

ベンゼン＋硫酸→ニトロベンゼン→アニリン
塩素＋CO→ホスゲン

アニリン＋フォルムアルデヒド（ホルマリン）→MDA (methylene dianiline)
MDA ＋ホスゲン→MDI＋塩酸

“Dow’s core Polyurethanes franchise enables success in downstream specialty markets and applications, and our integration strength allows us to more effectively provide market-driven customer solutions,” commented Joe Harlan, president of the Performance Materials division. This project also represents another example of Dow’s commitment to the U.S. manufacturing sector, in addition to Dow’s interest in leveraging its engagement in China to promote foreign direct investment (FDI) and job creation by Chinese companies in the U.S. “Dow is a leader in FDI involvement and working with global partners to enter the American economy,” continued Harlan. “We are committed to partnering with innovative companies that advance Dow’s strategy and help create and preserve U.S. manufacturing jobs.”

A signing ceremony took place today in Los Angeles, California, as part of a Chinese delegation’s visit to the U.S. and Canada to sign a number of potential investment collaborations including the one with Dow.

“Dow customers need competitive supply especially in this economy. We are looking for a partner who is a reliable, competitive supplier that can enable us to strengthen our MDI business in North America to serve the rapidly-growing energy efficiency and lifestyle-enhancing markets,” says Steven English, global vice president for Dow Polyurethanes. “Jilin Connell brings significant experience in aniline production and a commitment to the partnership.”

About Dow Polyurethanes

Dow is the world's largest producer of propylene oxide (PO), propylene glycol (PG), and polyether polyols, and is a leading producer of quality aromatic isocyanates, such as MDI and TDI. Dow's polyurethane products enhance a broad range of applications including construction, automotive, furniture, bedding, appliance, decorative molding, athletic equipment and more. The business provides key ingredients, systems and solutions for rigid, semi-rigid and flexible foams, adhesives, sealants, coatings, elastomers and binders. VORANOL™ VORACTIV™ polyols exemplify Dow’s ongoing initiative to lead the industry in providing high-performance products that meet critical consumer needs.

Jilin Connell Chemical Industry Co., Ltd. was established in November 2006, covering an area of 320,000 square meters. We are located in Jilin Economic & Technical Development Zone, with 980 employees including 12 ones with graduate degree, 180 ones with bachelor degree and 526 ones with college degree. There are also 17 senior engineers and 58 engineers.
Our product line is comprised of nitrobenzene, aniline, nitric acid and synthetic ammonia.

We started a project with a total investment of 2 billion RMB (about 0.29 billion US Dollars), and 1.2 billion RMB (about 0.176 billion US Dollars) was invested in the first stage with completion of the facilities of nitrobenzene of 240,000 MT/Y, aniline of 180,000 MT/Y, purified hydrogen from coal gas of 40,000 cubic meters per hour, oxygen by air separation of 10,000 cubic meters per hour, waste water treatment, electric power transmission, end product tank farm, loading and unloading stations for tank car and tank truck, utilities like railway line, office building, logistics and after-services systems.

With regard to Aniline Plant, the adiabatic nitration technology was imported from Germany, with the advantage of avoiding the deposit of sodium nitrophenolate, so that the explosion risk during aniline production is diminished fundamentally. The existing aniline plant for the first stage is in full swing with an annual sales income of 2.2 billion RMB (about 0.323 billion US Dollars).

The second stage of the project started on July 1st 2010. So far, the second aniline plant was on stream in October, 2011, and the ammonia plant will be on stream in November, 2011. The concentrated nitric acid project of 270 KTA will be on stream in 2012. After starting up of nitric acid facilities being jointly-operated with Anhui Huainan Chemical Group Co., Ltd., the bottleneck of up stream supply of feedstock and logistics will be solved that will result in dropping of production cost and raising market competitiveness. At present, the total capacity of aniline run by JCCICL has come to 360 KTA that turns JCCICL to be the largest aniline production enterprise in China, and the largest capacity by single unit in the world.

With regard to the third stage of aniline project, JCCICL has jointedly cooperated with Jilin Coal Mine Group Corporation for a coal mine project with the estimated investment of 10 billion RMB ( about 1.57 billion US dollars ). This coal mine project will keep JCCICL sustainable development with no more hindrance of feedstock of coal in future and satisfy the demand of coal on Jilin local market in the coming decades. Following the coal mining policy stipulated by Inner Mongolia, JCCICL and  JCMC have come to an agreement by establishing a 400 KTA  Aniline Project there which shall be on stream by the year of 2013 with an annual sales income at about 18 billion RMB ( about 2.83 billion US dollars ) that will be shared 50 to 50 percent by each of JCCICL and JCMC.
 

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June 2, 2010 - KBR

KBR Awarded Contract by Jilin Connell Chemical Industry Co., Ltd. for Aniline Technology License

KBR Inc. announced that it has been awarded a contract by Jilin Connell Chemical Industry Co., Ltd. to provide licensing and related services for its grassroots aniline plant in Jilin City, Jilin Province, China.

The aniline technology is offered by KBR through a licensing alliance with DuPont. KBR will license this leading technology for Connell's 150,000 metric tons per annum (MTA) aniline plant, which will enable Connell to double its existing production capacity at this site. KBR will also provide basic engineering, training and field support services. This award follows the successful licensing by KBR of two aniline plants in China. Work on the project is already underway.

DuPont's liquid phase hydrogenation technology for low cost production of high quality aniline

October 19, 2004 Halliburton

Tianji Group selects KBR's technology for 450ton/day aniline plant in China

１）KBR has been awarded a contract by Fangyuan Chemical Industry Development Co., Ltd. of the Tianji 天脊Group to provide a process technology license and basic engineering package for a 450 metric ton/day aniline plant located in Lucheng, Shanxi, China. 山西省  →　第一期 150,000 MTA aniline plant for Tianji in China.

The facility will utilize DuPont aniline technology, which is available to KBR through a licensing alliance with DuPont, to produce high quality aniline product. KBR will also supply critical imported equipment for the project, as well as training and field services. KBR is the engineering and construction subsidiary of Halliburton .

２）March 17, 2008 - KBR today announced that it has been awarded a contract by Ningbo Wanhua Polyurethanes Company寧波万華ポリウレタンto provide the technology and basic engineering for a 360,000 MTPA aniline plant. Once complete, Wanhua's aniline plant will be the largest in China and the largest single-train facility in the world.

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４）January 25, 2011 — KBR  today announced that its Technology business unit has been awarded a contract by Tianji Coal Chemical Industry Group, Co., Ltd. (山西天脊煤化工集团有限公司) to provide licensing and related engineering services for a grassroots aniline plant to be located in Lucheng, Shanxi, China.

The aniline technology is offered by KBR through a licensing alliance with DuPont. KBR will license this leading technology, and provide basic engineering and field support services, for Tianji’s 450 metric tons per day (MTPD) aniline plant. This award follows the successful licensing by KBR of an existing 150,000 MTA aniline plant for Tianji in China.

５）March 14, 2011 — KBR today announced that it has been awarded a contract by Inner Mongolia Connell Chemical Industry Co., Ltd. to provide licensing, basic engineering and related training and field services for its grassroots aniline plant in TongLiao, Inner Mongolia Province, China.

The aniline technology is offered by KBR through a licensing alliance with DuPont.  KBR will license the leading process for Connell’s 360,000 metric tons per annum (MTA) aniline plant (with a nitric plant of 270,000 MTA and an ammonia plant of 80,000 MTA). This follows an award of the aniline technology to KBR earlier in 2010 by Connell for its 150,000 MTA plant in Jilin City, China.

December 22, 2011　Bloomberg　

Ex-Dow Scientist Who Stole Secrets Gets 7 Years, 3 Months Prison

An ex-Dow AgroSciences LLC researcher who stole trade secrets from his former employer to benefit a Chinese university was sentenced to seven years and three months in prison, prosecutors said.

Kexue Huang（黄科学）, 46, was sentenced yesterday by U.S. District Judge William T. Lawrence in Indianapolis, according to an e- mailed statement from U.S. Attorney Joseph Hogsett’s office.

黄科学は中国で生まれたが、米国に永住権を持つカナダ国民で、吉林農業大学で生物学を専攻し、日本で博士号を取得した後、Texas A&M University in College Station、Rice University in Houston, Texasで研究生活を送り、2003-08年にはDow AgroSciences社に勤務していた。

黄科学は中国の湖南師範大学(Hunan Normal University)の研究者との共著論文「Recent advances in the biochemistry of spinosyns」をApplied Microbiology and Biotechnolog"誌(第82巻第1号、2009年2月)で発表し、Dow AgroSciences社が製造販売する新型殺虫剤の研究に言及していた。

“The United States Attorney’s Office takes seriously its obligation to protect Hoosier businesses from economic espionage,” Hogsett said in the statement. Hoosier is a nickname for people from Indiana.

Huang, a Chinese national, pleaded guilty in October to economic espionage. He also admitted to stealing trade secrets from the Minneapolis-based grain distributor Cargill Inc., the U.S. Justice Department said in October. Financial losses from his conduct exceed $7 million, the U.S. said.

It’s the first such prosecution in Indiana under a provision of the Economic Espionage Act that bans trade-secret theft to benefit a component of a foreign government, the government said. Eight such cases have been brought since the law was enacted in 1996, the U.S. said.

James Edgar, Huang’s attorney, didn’t immediately respond to a voice-mail message seeking comment on the sentencing. Huang has been in federal custody since he was indicted and will begin serving his sentence immediately, said Tim Horty, a spokesman for the U.S. Attorney’s office in Indianapolis. The government will seek to deport him after his sentence, Horty said in a phone interview.

Pesticide Research

Huang worked for the Indianapolis-based unit of Midland, Michigan-based Dow Chemical Co., where he researched the development of organically derived pesticides, from 2003 to 2008.

While at Dow, he shared confidential information with at least two people, one of whom conducted research first at the Hunan Normal University in China and later in Dresden, Germany, according to a plea agreement, which didn’t name the people.

In 2008 Huang went to work for Cargill as a biotechnologist. He admitted that while at Cargill he stole one of the company’s trade secrets -- a key component in the making of a new food product -- which he gave to a student at Hunan Normal University, the U.S. said in a statement yesterday.

The cases are U.S. v. Huang, 10-cr-102 and 11-cr-163, U.S. District Court, Southern District of Indiana (Indianapolis).

2009/9/12　DuPont、産業スパイを摘発

DuPont はこのたび、同社の有機ELに関する企業秘密を盗んで母校の北京大学に持ち帰ろうとした中国生まれの研究員Hong Meng 孟鸿を解雇するとともに、企業秘密が使われたり、他に開示されないよう、Delaware 裁判所に訴えた。
孟鸿は有罪を認め、2010年10月に禁固14か月となった。

年前に同社の企業秘密を盗んだとして刑事訴追されたGary Min闵盖里の事件に似ている。

同社の最も有名な製品（複数）についての推定4億ドルの価値のある情報をデータベースから盗み、懲役18ヶ月の判決を受けた。民事訴訟から始まり、刑事訴追された。

March 07, 2012
 
Dow’s World-Scale Propylene Production Unit Investment Receives Initial Board Authorization
Represents Latest Action in Comprehensive Investment Plan to Position Performance and Advanced Materials Businesses for Growth

The Dow Chemical Company announced today that its Board of Directors has authorized capital to finalize detailed engineering and purchase long lead-time equipment for a new, world-scale propylene production facility to be constructed at Dow Texas Operations.

This represents the latest move in the Company’s comprehensive strategy to increase its ethylene and propylene production and connect its operations with low-cost feedstock opportunities available from increasing supplies of U.S. shale gas.

2011/4/26　ダウ、エチレンとプロピレンの拡張計画を発表　

“This authorization marks yet another significant milestone in Dow’s comprehensive plan to create competitive advantage for our downstream Performance Materials and Advanced Materials businesses by further connecting our U.S. operations with cost-advantaged feedstocks,” said Jim Fitterling, executive vice president of Dow and president of Feedstocks & Energy and Corporate Development. “This investment directly supports Dow’s transformational strategy to enhance its feedstock flexibility and integration strength, and positions the Company for growth in attractive markets and geographies.”

Basic engineering work for the new on-purpose propylene production facility at Dow Texas Operations has commenced, and the project is on track for production start-up in 2015.

In December 2011, Dow and UOP LLC, a Honeywell company, signed a technology licensing agreement, enabling on-purpose propylene production at the facility. Under the terms of this agreement, Dow will license UOP's proprietary UOP C3 Oleflex TM process technology for manufacturing on-purpose propylene from propane. Dow also signed catalyst supply and performance guarantee agreements with UOP.

On-purpose propylene production from propane will create better economic value for Dow compared with high-priced purchased propylene.

“The availability of cost-advantaged feedstocks from U.S. shale gas developments represents a value-creating opportunity for our downstream businesses, and Dow is capitalizing on this,” said Brian Ames, vice president of Olefins, Aromatics and Alternatives. “Our Company was among the first in our industry to declare a comprehensive plan to take advantage of the increasing supplies of U.S. natural gas liquids, and we remain on track to implement that plan, which will create thousands of domestic jobs.”

The project is expected to create 1,300 jobs at its construction peak. When taken in context with Dow’s comprehensive USGC investments, the Company expects to create a total of 40 contractor jobs and 80 new, Dow direct jobs to operate and maintain the facilities. Further Dow estimates that this project, together with all other planned projects announced on April 21, 2011 as part of company’s comprehensive U.S. investment plan, will create up to 35,000 indirect jobs in the United States.

2012/3/8  Platts

Dow Chemical to announce location of new ethylene plant in April: CEO

Dow Chemical will unveil the chosen location of its proposed US ethylene plant next month, CEO Andrew Liveris said Thursday.

Dow last October began a feasibility study for the construction of a world-scale ethylene plant that would begin service in 2017.

"We have invested $4 billion in new facilities in the US," Liveris said at the CERAWeek 2012 conference in Houston. "We are restarting an ethylene plant that was idled and we will build a new plant. We will announce its location in April."

The petrochemicals company has already identified Freeport, Texas, as the site for its world-scale propane dehydrogenation unit, due for startup in 2015.

The planned ethylene plant is the crown jewel of an ambitious olefins project by Dow to increase ethylene production in the US by as much as 2.3 million mt/year by 2017.

ーーーー

2012/3/8 Forbes　

Dow Chemical Chief Wants To Limit U.S. LNG Exports

Andrew Liveris, chief executive of Dow Chemical, spoke today at the CERAweek conference、エネルギー関連の調査機関が主催する年次会合 in Houston about the impact that America’s newfound wealth of shale gas is having on his business and how it can drive growth across the nation. He urged the U.S. to set a national energy policy that limits exports of gas in the form of LNG.

Cheap, plentiful gas from shale reservoirs is a real boon for Dow, which uses the energy equivalent of 850,000 barrels of oil per day, mostly as feedstock for its chemicals and plastics.

With the proving up of America’s shale gas reserves, Liveris said Dow has begun investing in the U.S. again, set to build its first new ethane cracker here in a decade and eager to “refresh” its $40 billion in U.S. assets.

2011/4/26　ダウ、エチレンとプロピレンの拡張計画を発表　

That’s a shift in strategy after Dow’s many years of preferential expansion overseas in cheap-energy countries like Saudi Arabia (where last year Dow announced the Sadara chemical complex joint venture with Saudi Aramco).

Yet Liveris cautioned that America’s industrial advantages of cheap, plentiful gas could disappear without the formation of a coherent首尾一貫 national energy policy. What he’s particularly keyed in on is the possibility of importing gas in the form of LNG. “We’re all for exporting natural gas,” he said. “We just want to see it exported in solid form instead of liquid form.”

He explained that exporting products made from natural gas, such as plastics, fertilizers and other chemicals would generate eight times more value for the U.S. economy than just exporting the LNG alone.

“If we allow the world gas price to come to this country by exporting gas then it will destroy the benefits of plentiful cheap gas,” said Liveris, referring to the higher price that gas fetches in the rest of the world. LNG delivered to Japan and Korea, for instance, fetches upwards of $15 per thousand cubic feet, versus a current U.S. price of $2.25 per mcf.

Cheap gas feedstocks will even help Dow commercialize innovations that could bring about the green energy revolution. Liveris said that Dow’s solar shingle product — a solar panel integrated into roofing shingles — has been installed on 3,000 homes in Colorado and that full scale roll out will start in the third quarter of 2012 with availability in California and Texas. The cost of the solar shingles to homeowners, he said, will be cheaper than traditional solar panels, but more expensive than asphalt-based roof shingles.

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The shale gas boom in the US could go to waste if the country fails to develop a national energy policy, Dow Chemical chief executive Andrew Liveris said on Thursday.

The advent of shale gas has provided the country with growing supplies of low-cost natural gas. This has lowered power costs for manufacturers and provided chemical producers with a cheap source of feedstock.

"There are extraordinary opportunities for the US economy if we can maintain this dominant competitive advantage," Liveris said at the IHS CERAWeek energy conference in Houston.

In years past, manufacturing jobs left the US ­– not because of labour costs ­– but because of energy costs, Liveris said.

Because of shale gas, those jobs are coming back, he said. But Liveris warned against squandering this resource.

"There are some very important questions we have to grapple with, questions that just don't concern individual companies, but the entire economy," Liveris said.

Natural gas could be exported and it could be burned in combustion engines, he said. It could power gas turbines for power or used for chemicals.

"If we take that gas and turn it into higher value products, we can export those at a much higher profit, one that is felt through the entire economy," he said.

"We are all for exporting natural gas," Liveris said. "We just want to see it exported in solid form versus liquid form."

These questions will not answer themselves, he said.

"We cannot just shrug our shoulders and wait for this mythical thing called the market to provide us this wisdom," he said. "Public policy plays a role."

The US needs an energy policy that addresses not just shale gas but all of the nation's energy sources, including oil, nuclear and renewables.

"We risk losing our manufacturing sector just when it is starting to make a comeback," Liveris said.

The policy should address conservation, which Liveris said is often the simplest and most efficient way to reduce energy costs and greenhouse gas emissions.

The US needs to streamline its regulations, he said. Also, the policy needs to address renewable energy.

"We cannot forget that for all of our companies to maximise and maintain and build on this competitive advantage, we cannot go it alone," he said.

"We cannot afford to view government in one narrow lens, the one that sees government only as an obstacle," Liveris said. "We must see that government is an essential partner in our work. "

Mar 1 2012　Reuters

China firm to challenge US reach in espionage case

Lawyers for a Chinese steel company will challenge the ability of U.S. prosecutors to bring a criminal case against the company for trying to steal business secrets from chemical giant DuPont , a U.S. magistrate judge said.

Additionally, a former DuPont employee pleaded guilty on Thursday and has agreed to cooperate with U.S. authorities in the case.

A Northern California grand jury indicted Pangang Group and other defendants last month for conspiracy to commit economic espionage and other crimes including conspiracy to steal trade secrets, according to court documents.

Pangang, a state-owned steel manufacturer in Sichuan province, and its subsidiaries worked with a California businessman and others to obtain several valuable trade secrets from DuPont, the indictment alleged.

The United States has identified industrial spying as a significant and growing threat to the nation's prosperity. However, some advocates have argued that Chinese targets are attractive for law enforcement in an election year, due to concerns about being called soft on China.

At a hearing in a San Francisco federal court on Thursday, two U.S. lawyers appeared for Pangang and its subsidiaries.

However, U.S. Magistrate Judge Nathaniel Cousins referred to a letter Pangang's attorneys had sent to the court, specifying that their appearance was limited to a jurisdictional challenge to the prosecution.

California businessman Walter Liew has already been in custody for several months on witness tampering charges related to the DuPont allegations. Liew and his wife, Christina, also face charges of conspiracy to commit economic espionage and other counts in the latest indictment handed up last month.

Liew, a U.S. citizen, allegedly paid former DuPont engineers for assistance in designing chloride-route titanium dioxide, also known as TiO2, according to the indictment. DuPont is the world's largest producer of the white pigment used to make a range of white-tinted products, including paper, paint and plastics.

Both Liew and his wife have plead not guilty.

Another defendant in the case, Tze Chao, pleaded guilty to conspiracy to commit economic espionage at a separate court hearing on Thursday. Chao, who worked as a chemical engineer for DuPont for over 35 years, acknowledged that he kept confidential company information when he left.

"I used a DuPont trade secret," Chao said in court. " tried to help Pangang company, which is state-owned, controlled by the government of the People's Republic of China."

John Potter, an attorney for Pangang, declined to comment.

Chao faces a maximum of 15 years in prison and a $500,000 fine, but prosecutors indicated that they would recommend leniency.

Assistant U.S. Attorney John Hemann told Cousins that Chao, a U.S. citizen, was "providing cooperation" to the government.

Cousins agreed to release Chao without bail. An attorney for Chao declined to comment.

Prosecutors detailed Liew's alleged links with the Chinese government in a court filing last month. They named, as one of the Chinese representatives who once met with him, a high-ranking Communist Party official who later became a member of the Politburo.

The Pangang Group is based in Panzhihua city in the far south of China's Sichuan province and is western China's largest steelmaker. It was formally known as Panzhihua Iron and Steel (Group) Co Ltd.

The case is United States of America vs. Walter Liew, Christina Liew et al., U.S. District Court, Northern District of California, No. 11-cr-573.

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Mar 9, 2012 Bloomberg

Ex-DuPont Employee Pleads Not Guilty in Trade Secrets Case

Ex-DuPont Co. worker Robert J. Maegerle pleaded not guilty to conspiracy to steal trade secrets from his former employer in an economic espionage case alleging he and others gave the information to China’s Pangang Group Co.

Maegerle, 76, a process engineer for DuPont from 1956 to 1991, had detailed knowledge of the company’s titanium dioxide technology and expertise in building production lines for the substance, a white pigment widely used in paints, plastics and coatings, according to a revised indictment filed Feb. 7.

At the center of the case is Walter Liew, the owner of an now-defunct Oakland, California-based company who had contracts with state-owned Pangang. Prosecutors said in court papers that documents they obtained from Liew’s safety deposit box show Liew claimed he was directed by a Chinese government official in 1991 to obtain technology needed for China to build pigment factories.

As far back as 1998, Maegerle gave Liew secret information from Wilmington, Delaware-based DuPont, including trade secrets about the process and equipment needed to design a plant to make titanium dioxide, known as Ti02, prosecutors said in the indictment. DuPont is the world’s largest maker of Ti02 and won’t sell or license its technology to other companies.

In 2005, Maegerle e-mailed Liew photographs from DuPont plants containing secret information about the company’s inventions for a cost-efficient process to develop the substance using chloride, according to the indictment.

New Plant
Maegerle, Liew and a former DuPont employee, Tze Chao, provided information to Pangang in 2008 for the design and construction of a new plant in China to make 100,000 metric tons of titanium dioxide a year, prosecutors said. After DuPont filed a trade-secret lawsuit against Liew, Maegerle gave the Californian information for responding to the case which falsely stated that nothing from DuPont was used by Liew, according to prosecutors.

In addition to the conspiracy count, Maegerle is charged with attempted theft of trade secrets, aiding and abetting and conspiring to tamper with witnesses and evidence. The most serious charge, tampering, carries a maximum penalty of 20 years in prison and at least a $250,000 fine.

Jerome Froelich, Maegerle’s attorney, appeared with his client and entered his not guilty plea.

Liew, his wife, Christina, Pangang and three subsidiaries have also been charged. Liew’s arraignment is scheduled for March 21. He has been in prison in Oakland since his arrest in July.
Liew Denies Allegations

Liew has denied stealing trade secrets and allegations about his connections to Chinese government officials aren’t accurate, his lawyer, Tom Nolan, said in court filings.

Christina Liew, charged with conspiracy, possession of trade secrets and witness tampering, pleaded not guilty today. She has been free on $100,000 bond since July, when she and Walter Liew were first charged.

Pangang plans to seek dismissal of the charges against it on grounds that the U.S. government can’t serve the company or its units in China, Robert Feldman, an attorney for the company, said in a court filing. A hearing on that matter was scheduled for June 7.

The other U.S. defendant in the case, Chao, 77, who was with DuPont from 1996 to 2002, pleaded guilty March 1 to one count of conspiracy to commit economic espionage and is cooperating with the government.

The case is U.S. v. Liew, 3:11-cr-00573, U.S. District Court, Northern District of California (San Francisco).
 

March 25, 2012　

Dow Announces Coatings Manufacturing Investment in Saudi Arabia
The Dow Chemical Company today announced plans to invest in a new manufacturing facility for its Dow Coating Materials (DCM) business unit in the Kingdom of Saudi Arabia. Dow Coating Materials is the premier supplier of products and technologies to architectural and industrial coatings manufacturers. The planned facility, which will be located at the Jubail Industrial City, will manufacture a wide range of coating materials for both the Kingdom and export markets worldwide.

“With an unmatched specialty portfolio of advanced materials, we constantly aim at bringing customers differentiation and solving global challenges locally together,” said Jerome Peribere, Executive Vice President of The Dow Chemical Company and President and Chief Executive Officer, Dow Advanced Materials Division (AMD). “By investing in a new coatings facility in Saudi Arabia, we are moving closer to our regional customers, and realizing our regional business objectives in a key growth market for Dow.”

“Our investment in a new world-class coatings facility will support our growth ambitions by bringing the most advanced and sustainable coating materials to the Saudi market and by enabling us to deliver innovation that is tailored to the region’s needs,” said Dr. Ilham Kadri, General Manager, AMD Middle East & Africa. “Additionally, we will look to create new highly-skilled jobs in the Saudi market, and support the Kingdom’s vision to establish sustainable policies and practices in the industry.”

“Dow Coating Materials is known as “The Expert’s Expert”, which basically means our experts collaborate with our customer's experts to develop the most advanced solutions,” said Anton Van Beek, General Manager, DCM Europe, Middle East & Africa (EMEA). “We are committed to helping our customers rethink coatings by working closely with paint and coating formulators worldwide to develop breakthrough technologies that are differentiated. Our new investment in Saudi Arabia will deliver the solutions our regional customers want, without compromising on cost or sustainability profile.”

Dow Coating Materials operates 43 manufacturing plants worldwide and 13 dedicated R&D facilities across all major geographic markets where Dow does business. Through its mission of collaboration, inspiration, innovation and growth, the business provides material products, science, technology, and manufacturing solutions to the architectural and industrial coatings industry worldwide.

The new facility is the latest in a series of investments to be announced by Dow in Saudi Arabia. In July 2011, Dow and Saudi Aramco announced an agreement to form Sadara Chemical Company, a joint venture to build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Saudi Arabia. Upon completion, the joint venture is projected to be among the world’s largest petrochemical facilities and would represent the largest foreign direct investment into Saudi Arabia’s petrochemical sector. Dow also recently announced plans to invest in a best-in-class manufacturing facility for DOW FILMTEC™ Reverse Osmosis (RO) elements in the Kingdom. 超低エネルギー逆浸透エレメント

About Dow Coating Materials

Dow Coating Materials is the most innovative coatings raw material supplier in the world; driving fundamental shifts in the coatings industry and moving the market as the expert’s expert in coatings solutions. Through its mission of collaboration, inspiration, innovation and growth, the business provides material products, science, technology, and manufacturing solutions to the architectural and industrial coatings industry worldwide. Dow Coating Materials operates 43 manufacturing plants worldwide and 13 dedicated R&D facilities across all major geographic markets where Dow does business. For more information please visit http://www.dow.com/coating.

About Dow in the Kingdom of Saudi Arabia

Dow’s presence in the Kingdom of Saudi Arabia began 35 years ago with two subsequent joint ventures with E.A. Juffali & Brothers, Arabian Chemical Company Ltd., manufacturing STYROFOAM™ brand insulation (Jeddah) and latex (Jubail). In 2011, Dow and Saudi Aramco formed a joint venture, Sadara, to build, own and operate a world-scale, fully-integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. Also in 2011, Dow expanded its global R&D footprint by establishing the Dow Middle East and Africa R&D Center at the King Abdullah University of Science and Technology as part of a comprehensive R&D collaboration agreement with the University.

April 02, 2012 Dow

Dow Implements Cost-Reduction Plans, Anticipates Annual Savings of Approximately $250 Million

The Dow Chemical Company announced today that it is implementing cost reductions in line with its commitment to actively manage its portfolio and in response to continued weakness in the European economy. Actions will include closing certain manufacturing plants in Europe, North America and Latin America, as well as canceling a selection of capital projects and implementing workforce reductions, as part of the Company’s previously announced cost-reduction efforts and its Efficiency for Growth program initiated in 2011.

Dow anticipates that it will save approximately $250 million annually from these actions. The savings are in addition to the $500 million in cash flow that Dow already delivered in 2011 from the inception in May 2011 of its Efficiency for Growth program, and are part of the Company’s goal to deliver an additional $250 million of cash flow from cost interventions in 2012. The Company anticipates that approximately 900 positions will be eliminated worldwide, and in the first quarter, Dow will take charges totaling approximately $350 million for asset impairments and write-offs, severance and other costs related to these measures.

“These actions, while difficult, are in full alignment with our commitment to continually manage our portfolio to adapt to changing and volatile economic conditions, as we are seeing particularly in Western Europe, and to preferentially invest in our fast-growing, technology-rich businesses,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Today’s announcement further demonstrates our resolve and ability to take swift, strategic cash flow interventions that will keep Dow solidly on a trajectory to deliver $10 billion in EBITDA in the near term.”

Dow will shut down three plants that produce STYROFOAM™ Brand Insulation products located in Estarreja, Portugal; Balatonfuzfo, Hungary; and Charleston, Illinois; and idle a plant in Terneuzen, The Netherlands.
Dow will also close its toluene diisocyanate (TDI) plant in Camaçari, Brazil.
In addition to these closures, Dow will consolidate certain other assets in its Polyurethanes and Epoxy businesses, optimizing their operations while remaining focused on meeting customer needs and sourcing through non-impacted assets.
These actions are expected to take place over the next two years.

April 19, 2012　Dow　

Dow to Build New Ethylene Production Plant at Dow Texas Operations

The Dow Chemical Company today announced that the Company will construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, TX, as part of Dow’s previously announced comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.

2012/3/12 　Dow、ワールドスケールのプロピレン建設を決定

The new ethylene production facility at Dow Texas Operations will employ up to 2,000 workers at its construction peak. Over the next five to seven years, Dow estimates that this project, together with all other planned projects announced as part of the Company’s comprehensive U.S. investment plan, will employ up to 4,800 workers during peak construction and support over 35,000 jobs in the broader U.S. economy.

“For the first time in over a decade, U.S. natural gas prices are affordable and relatively stable, attracting new industry investments and growth and putting us on the threshold of an American manufacturing resurgence,” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer. “Dow is proud to have been among the first manufacturing companies to declare a comprehensive plan to take advantage of these favorable market dynamics, further enhancing our footprint in the Americas and the profitability of our global businesses while supporting economic revitalization in the communities in which we operate. Constructing this new ethylene cracker at Dow Texas Operations will create a long-term advantage for our downstream businesses and for our Company as a whole, and the benefits will accrue not only to Dow but to the state and national economy.”

This decision marks another significant milestone in the Company’s strategy to further develop the competitive advantage for Dow’s Performance Plastics, Performance Materials and Advanced Materials businesses by expanding access to low-cost natural gas-based feedstocks, which are used in the production of Dow products that are essential to over a dozen consumer markets.

“The outlook for advantaged U.S. natural gas was a significant factor in Dow’s decision to invest $4 billion to grow our overall ethylene and propylene production capabilities in the U.S. Gulf Coast region,” said Jim Fitterling, Dow Executive Vice President and President of Feedstocks & Energy and Corporate Development. “Today, 70 percent of the Company’s global ethylene assets are in regions with cost advantaged feedstocks – and we’ve seen the benefits this advantage provides given oil-based naphtha margin pressure in Europe and Asia. This plan represents a game-changing move to strengthen the competitiveness of our high-margin, high-growth derivatives businesses as we continue to capture growth in the Americas.”

Dow Texas Operations in Freeport is Dow’s largest integrated manufacturing site worldwide and the largest single-company chemical complex in North America. With 4,200 employees and 3,000 contractors on site daily, Dow Texas Operations currently manufactures 44 percent of Dow products sold in the United States and more than 20 percent of Dow products sold globally.

Dow Progresses Comprehensive Plan

Projects announced as part of the Company’s U.S. Gulf Coast investment plan are moving forward according to schedule.

The new ethylene production unit project is currently on track for start-up in 2017, and Dow continues to develop feedstock supply arrangements for this new asset.

On March 7 Dow announced that the Company’s Board of Directors had authorized capital to finalize detailed engineering and purchase long lead-time equipment for a new, world-scale propylene production facility to be constructed at Dow Texas Operations. Basic engineering work for the new on-purpose propylene production facility at Dow Texas Operations has commenced, and the project is on track for production start-up in 2015.

In December 2011, Dow and UOP LLC, a Honeywell company, signed a technology licensing agreement, enabling on-purpose propylene production at the facility. Under the terms of this agreement, Dow will license UOP's proprietary UOP C3 Oleflex TM process technology for manufacturing on-purpose propylene from propane. Dow also signed catalyst supply and performance guarantee agreements with UOP.

Recomissioning work on an ethylene production unit at Dow’s manufacturing site near Hahnville, Louisiana is progressing as planned, and the unit is on track to restart at the end of this year.

2012/10/24 Shanghai　

Dow-Shenhua Yulin Complex Products Portfolio Changed

On Oct 19, 2012, the official website of the Ministry of Environmental Protection (MEP) released that the environmental assessment report of Dow-Shenhua Yulin Coal Utilization Complex has been accepted on October 17.]

全文（中国語）　http://hps.mep.gov.cn/jsxm/xmsl/201210/W020121019511825884207.pdf

According to the information disclosed by the MEP’s website, the Dow-Shenhua Yulin products portfolio is changed. Previously, the public information shows that the complex including 3.32 Mt/a methanol, 1.22 Mt/a olefins (MTO route), 500 kt/a Chlor-Alkali and other derivatives as well.

The new products portfolio includes 23 units of 3 zones, namely:

1. Hydrocarbon (HC) zone, including 8 units: coal gasification, CO shift, acid gas removal, sulfur recovery, methanol synthesis, hydrogen, methanol to olefins and ammonia.

Methanol capacity is 4 Mt/a; ethylene and propylene total capacity is approximately 1.5 Mt/a.

2. Basic plastic chemical (BPC) zone, including 5 units: Oxo alcohol, EO/EG, LDPE, PP and N-propanol.

The total capacity is about 1.27 Mt/a.

3. Performance plastic chemical (PPC) zone, including 10 units: ethanolamine / ethylamine, crude acrylic acid, butyl acrylate, octyl acrylate, acrylic acid, polyether polyol, propylene oxide, propylene glycol, H2O2 and mixed glycol ethers.

The total capacity is about 1.72 Mt/a.

当初計画

　メタノール　332万トン（Coal to Methanol）　→ 400万トン
　オレフィン　122万トン（Methanol to Olefins）→ 150万トン
　クロルアルカリ　50万トン　→ 含まれず
　MEG 　40万トン
　エタノールアミン/エチレンアミン　21万トン
　ポリエーテル ポリオール　34万トン
　アクリル酸　15万トン
　アクリレート　20万トン
　EDC 　51万トン→ 含まれず
　PVC 　50万トン→ 含まれず

The raw materials supporting coal mine of the complex is Dabaodang coal mine in Yulin, Shaanxi, which will cost RMB 4 billion with the designed coal production capacity of 13 Mt/a.

The construction period of Dow-Shenhua Yulin complex is from 2013 to 2018. The total investment of chemical complex is about RMB 100 billion, of which environmental cost is about 5 billion, accounts for 5% of the total investment.

According to the archived information of ASIACHEM, the project has laid the foundation stone in November 2009 in Shenmu, Yulin, Shaanxi Province; got the “Preliminary Approval” from National Energy Administration in March 2010; in September 2012, received the water resources approval from the Yellow River Conservancy Commission, Ministry of Water Resources.

According to the major projects investment regulations of Chinese Government, before the project officially started construction, it also need to obtain the environmental approval from MEP, and the final approval from the National Development and Reform Commission (NDRC).



ASIACHEM will organize the 4th Coal to Olefins Conference in Beijing Nov. 15-16 2012; the optimization of CTO Products Portfolio will be focused.
http://www.chinacoalchem.com/events/2012CTO/2012CTO.pdf

October 23, 2012 Dow　

Dow Leverages Recently Announced Operating Model to Accelerate Cost Reduction and Efficiency Actions

Actions Expand Intervention Targets to $2.5 Billion
Expects Additional Annual Cost Savings of Approximately $500 Million
Adds Cash Interventions Totaling $500 Million
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The Dow Chemical Company today announced a restructuring program designed to accelerate cost reduction actions and advance the next stage of the Company’s transformation in the midst of persistently slow macroeconomic growth.

These actions will result in a net reduction of approximately 2,400 positions, or five percent of the global workforce. The restructuring also includes the shutdown of approximately 20 manufacturing facilities. Once fully implemented, these actions are expected to result in approximately $500 million of annual operating cost savings by the end of 2014. The Company will take charges totaling approximately $0.50 - $0.60 per share in the fourth quarter of 2012 for asset impairments and write-offs, severance and other costs related to these measures.

In addition, Dow will further reduce capital spending and investments for targeted growth programs that are no longer a priority in this environment. These measures are expected to deliver an additional $500 million cash impact. Taken together with the $1.5 billion of measures Dow has already initiated, this will bring the Company’s stated cumulative intervention goal to $2.5 billion.

“The reality is we are operating in a slow-growth environment in the near-term and, while these actions are difficult, they demonstrate our resolve to tightly manage operations – particularly in Europe – and mitigate the impact of current market dynamics,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Earlier this year we announced targeted actions – levers we planned to pull to reduce costs and protect our earnings growth path. The interventions we are announcing today represent the next phase in our path to driving efficiency and prioritizing our growth programs. Importantly, we will continue funding projects where differentiation is rewarded even in this environment and where margin expansion opportunities are clear – for example in Dow AgroSciences, Dow Electronic Materials, and our Sadara and U.S. Gulf Coast investments. Taken on the whole, Dow’s strategy remains intact, and our long-term growth fundamentals are strong.”

Dow will shut down a high density polyethylene facility in Tessenderlo, Belgium, a sodium borohydride水素化ホウ素ナトリウム plant in Delfzijl, the Netherlands, as well as a number of Performance Materials manufacturing facilities, including: an Automotive Systems Diesel Particulate ディーゼル微粒子除去Filters manufacturing facility in Midland, Michigan; Formulated Systems manufacturing facilities in Ribaforada, Spain, Birch Vale, United Kingdom and Solon, Ohio; and an Epoxy resins facility in Kina Ura, Japan. Additionally, the Company will record an impairment charge related to the write-down 評価減 of Dow Kokam LLC’s assets, reflecting weak global demand for lithium-ion batteries; and will consolidate certain assets in its Oxygenated Solvents 酸素化溶剤business, as well as shut down a number of other small manufacturing facilities. These actions are expected to take place over the next two years.

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人員削減等の合理化に関するお知らせ
当社は、2012年10月23日（米国東部時間）、マクロ経済成長の低迷が続くなかで、コスト削減措置を加速させ、当社の変革を次の段階へ進めるための合理化計画を発表した。
これらの措置により、全従業員の約5パーセントに相当する約2,400人（正味）の人員削減が行われることになる。この合理化計画には、約20の主要工場の閉鎖も含まれる。これらの措置がすべて完了すると、2014年末までに年間業務コストを約5億ドル節減できる見込みである。当社は、資産の減損および償却、退職金ならびにこれらの措置に関連するその他の費用について、2012年第4四半期に1株当たり合計約0.5-0.6ドルの特別損失を計上する予定である。
また、ダウは、現在の環境下で優先順位が低下した特定の成長プログラムに対する設備投資および投資の縮小も行う予定である。これにより、さらに5億ドルのコスト削減が達成される見込みである。既にダウが実施した15億ドルの措置と合わせると、当社が表明した削減目標の累積額は25億ドルに達する。
「現実として、当社は短期的には低成長の環境下で事業を行っており、これらの措置は困難であるが、とりわけヨーロッパにおいて事業運営をしっかりと行い、現在の市場における変化の影響を緩和しようとする当社の決意を表している。」と、ダウ会長兼最高経営責任者のアンドリュー・N・リバリスは述べている。「当社は今年初め、コストを削減し当社の利益の成長軌道を確保するために当社が実行を計画している、特定の措置を発表した。本日当社が発表する措置は、効率性を向上させ当社の成長プログラムの優先順位を決定するための次の段階を表している。重要なのは、例えば、ダウ・アグロサイエンス、ダウ・電子材料ならびに当社のサダラおよび米国メキシコ湾岸地域に対する投資など、この環境下においても差別化を行うだけの価値があり、利益拡大の機会が明確であれば、当社はプロジェクトに対する資金の供給を継続していくということである。全体としてみると、ダウの戦略は依然として損なわ
れておらず、当社の長期的な成長のためのファンダメンタルズは力強い。」

ダウは、ベルギー・テッセンデルロにある高密度ポリエチレン製造工場、オランダ・デルフゼイルにある水酸化ホウ素ナトリウム製造工場、多数のパフォーマンス・マテリアル製造工場（ミシガン州ミッドランドにあるオートモーティブ・システムズのディーゼル分子フィルター製造工場、スペイン・リバフォラダ、イギリス・バーチベールおよびオハイオ州ソロンにあるフォーミュレイテッド・システムズの製造工場ならびに日本・衣浦にあるエポキシ樹脂の製造工場を含む。）を閉鎖する予定である。さらに、リチウムイオン電池に対する世界的な需要の減少を反映して、当社はダウ・コカムLLCの資産の評価減に関連する減損費用を計上し、含酸素溶剤事業の一定の資産を統合し、多くのその他の小規模な製造施設を閉鎖する予定である。これらの措置は今後2年間で実行される見込みである。
当社は各国で定められた地元の利害関係者と連絡を取り、関連する情報および協議のプロセスを遵守する。

October 24, 2012 Dow　

Dow Announces Plans for a New NORDEL™ IP Hydrocarbon Rubber Plant
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The Dow Chemical Company announced today that it plans to build a new world-scale plant for the production of metallocene ethylene propylene diene monomer (EPDM), sold under the trademark of NORDEL™ IP Hydrocarbon Rubber.

The new facility, when operational in 2016, will help set the standard in cost effectiveness and production efficiencies by incorporating the use of Dow’s newest proprietary catalyst technology and leveraging the production advantages of Dow’s large-scale, integrated solution process. The manufacturing site will be located on the U.S. Gulf Coast; Dow is currently assessing location options. This production facility will leverage Dow’s investment plan to increase ethylene and propylene production in the U.S. Gulf coast and will connect the Company's U.S. operations into feedstock opportunities available from increasing supplies of U.S. shale gas.

“NORDEL IP will continue to be a strategic part of the Dow Elastomers portfolio both now and into the future,” said Kim Ann Mink, business president, Dow Elastomers, Electrical and Telecommunications. “The new world-scale facility will position Dow to meet the increasing global demand for EPDM through next generation technology that produces a broader offering including high mooney viscosity products with enhanced quality. From automotive and building and construction to wire and cable markets, we will maintain Dow’s cost competitive position through the implementation of technology efficiencies and leveraging large, integrated sites. This new facility demonstrates the Company’s commitment to invest in specialty products that bring performance advantages to the marketplace.”

Dow is a recognized leader in polymerization catalysis and has harnessed this power to enhance product design and quality. NORDEL™ IP is often specified as a preferred solution due to its consistent structure which lends itself to easy processing and lot-to-lot consistency. Customers using NORDEL™ IP enjoy excellent control, performance, processing advantages and precision that yields minimal blemishes, defects and rejects.

End-use applications for NORDEL IP include automotive weather-stripping, automotive hoses and belts, building profiles, roofing membranes, footwear and general rubber products.

 

December 06, 2012

Dow Chemical: DOE Report on LNG Exports Short Changes Manufacturing and U.S. Competitiveness

The Dow Chemical Company today issued the following statement:

“The report issued by the DOE on liquefied natural gas (LNG) exports is flawed, misleading, and based on outdated, inaccurate and incomplete economic data,” stated Andrew N. Liveris, Dow’s chairman and chief executive officer. “The report fails to give due consideration to the importance of manufacturing to the U.S. economy. Manufacturing is the largest user of natural gas in the U.S., and creates more jobs and more value to the U.S. economy from natural gas than any other sector. The value of every unit of energy used by the manufacturing sector is multiplied by as many as 20 times from the production of thousands of high value products though the value chain. Compare this to the 1-time value created by exporting energy as liquefied natural gas. Furthermore, for every manufacturing job created on the factory floor 5-8 more are created in the larger economy.”

“The report also fails to consider the tremendous competitive advantage that affordable, abundant domestic natural gas offers to the nation. Instead, the report offers the baffling 不可解なconclusion that the U.S. would be better off using its domestic natural gas advantage to fuel growth and jobs in other regions versus strengthening the U.S. economy through manufacturing and benefiting consumers with lower energy costs.”

In addition, Liveris stated, “Industry has announced over 100 capital investments representing over $90 billion in spending and millions of new jobs predicated on abundant and affordable natural gas, none of which were captured in this report. Unfortunately, policy makers have been given a flawed report that overlooks vital dynamics, including a manufacturing renaissance that is already underway and much needed by this country.”

 

2012/12/7　米エネルギー省、LNG輸出に向けての報告書を発表

J

2013/1/1  Bloomberg 

Dow Chemical Restarts Louisiana Ethylene Plant

Dow Chemical Co., the largest U.S. chemical maker by revenue, restarted an idled ethylene plant after almost four years because natural gas from shale formations has made U.S. production more competitive.

The Olefins 2 plant at St. Charles Operations near Hahnville, Louisiana, began producing ethylene on Dec. 25, Nancy Lamb, a spokeswoman for the Midland, Michigan-based company, said today in an e-mail. The plant was closed in January 2009. Dow had said it would be reopened by Dec. 31.

Chairman and Chief Executive Officer Andrew Liveris is investing $4 billion on the U.S. Gulf Coast to boost ethylene and propylene capacity through 2017 because of cheap gas, used as a raw material and to power plants. Hydraulic fracturing of shale rock formations caused a glut of gas supplies and sent prices to a decade low in April.

The St. Charles plant will add about $150 million a year to earnings before interest, taxes, depreciation and amortization, Liveris said Dec. 3.

Ethylene and propylene are used to make plastics for packaging, autoparts and carpets, among hundreds of uses.

2011/4/26　ダウ、エチレンとプロピレンの拡張計画を発表　

2017/3/7 Forbes

Dow Chemical buys NuvoSun for making solar shingles

Dow Chemical said Thursday it has bought solar startup NuvoSun, which developed a thin film technology that Dow will use for its solar roof.

Dow, which made equity investments in NuvoSun over a 3-year period, closed the purchase of the startup on Feb. 28, said Dow spokeswoman Kate Nigro. She declined to disclose the purchase price. Greentech Media first reported the acquisition on Wednesday.

Dow took an interest in NuvoSun’s technology because Dow had been planning to roll out shingles embedded with solar cells for many years. After some delays, Dow began selling the solar shingles屋根 in 2011, first in Colorado and later in California and Texas. I wrote about the first Dow solar shingle installation in California last summer.

DOW POWERHOUSE Solar Shingles
The POWERHOUSE™ Solar Shingle is Made in the USA at Dow’s small scale manufacturing facility in Midland, Michigan. Dow has also begun construction of a new, large-scale facility at Dow’s Midland, Michigan Operations site, which will create up to 1,275 jobs between now and 2015.

NuvoSun is a second generation innovator of thin-film photovoltaic (PV) 薄膜太陽電池cells and modules based on flexible Copper Indium/Gallium di- Selenide (CIGS) technology. NuvoSun's mission is to redefine the cost point for PV cells and modules and to become the lowest cost producer of these products by 2012.

This will be achieved by addressing cost across the complete product design and production process:

• High conversion efficiency cell design
• Proprietary high speed roll-to-rolll sputtering process on flexible foil
• Low cost materials and high materials utilization
• Redefine capital efficiency for the solar industry
• Focus on high volume high quality manufacturing execution

The company has since expanded the sales of the solar shingles to the East Coast and lined up NEXUS EnergyHomes, a home builder, as a customer.

Dow hopes to attract homeowners who need to replace their roofs and want to use clean power at the same time. In some cases, homeowners who have high utility bills — because they use a lot of power and are billed at higher rates than people with lower monthly electricity use — may save money over time by going solar.

The looks of the solar shingles may also be a selling point. Conventional solar panels require racks to prop them up, and the color of the solar cells is usually different than the color of the roof.

Whether solar shingles will become popular remains to be seen. The price of conventional solar panels is declining because more manufacturers entered the market in recent years and competition became more intense. Most of the solar panels for sale today contain cells made with silicon, which can convert a higher percentage of the sunlight into electricity than what Dow’s shingles can do.

Founded in 2008, NuvoSun’s technology uses copper, indium, gallium and selenium to convert sunlight into electricity. The compound and the manufacturing process involved make it possible to create ultra thin and flexible solar cells. Silicon solar cells are thicker and prone to breakage if they are not protected by glass.

NuvoSun’s founder, Dave Pearce, told me in early 2012 that his California company was gearing up to ship its cells to Dow. Pearce started another solar company before NuvoSun, and that company, MiaSole, has since been sold to China-based Hanergy.

---

greentechmedia.com

NuvoSun, a thin-film solar firm founded by former MiaSolé CEO Dave Pearce, was just acquired by Dow Chemical.

Dow had invested in the firm in early 2010. According to sources close to the deal, NuvoSun is now a wholly owned subsidiary of Dow Chemical. Dow has not yet responded to our inquiries.

Presumably, the NuvoSun CIGS products are destined for Dow's solar shingles, a building-integrated PV (BIPV) product that has long been promised by Dow. Solar shingles would seem to be a natural fit for the BIPV concept, but reliability, craft, and interconnection issues are still obstacles to widespread deployment on new or rebuilt rooftops.

Dave Pearce, the CEO of NuvoSun, has spent ten years developing CIGS-based thin-film solar and has lived to tell about it. Pearce founded NuvoSun in January 2008 after parting company as CEO of MiaSolé, the thin-film solar company he founded in 2001. MiaSolé was acquired by Hanergy late last year for pennies on the dollar. Pearce has admitted that he might have over-promised and under-delivered while at MiaSolé, an error he has not made at the relatively quiet NuvoSun. Pearce has claimed that he sees a path for NuvoSun to get its costs below $0.50 per watt.

Will a thin-film solar startup ever be able to get to market and commercial scale without partnering with an established manufacturing and technology company? The once sizable population of standalone CIGS aspirants continues to dwindle as companies fail or as early-stage firms are forced to consolidate with much larger partners.

以下　http://www.greentechmedia.com/articles/read/NuvoSun-CIGS-Solar-Startup-Acquired-by-Dow-Chemical

 Jan 18, 2012 Bloomberg

Dow Makes Third Investment in U.S. Solar-Cell Maker NuvoSun

NuvoSun Inc., a closely held producer of thin-film solar cells, expanded its third funding round to $28.8 million with $10 million from Dow Chemical Co., the largest U.S. chemicals maker.

NuvoSun disclosed the financing today in a Securities and Exchange Commission filing, which didn’t include the participants. Chief Executive Officer David Pearce confirmed the investment in a telephone interview. Dow representatives did not return phone messages seeking additional comment.

Proceeds from the latest funding will be used “just for business operations,” Pearce said. NuvoSun last year opened a 40-megawatt production facility in Milpitas, California, using funds acquired in September 2010 from Dow and Pearce.

Any plans for adding overseas manufacturing plants are “on hold,” Pearce said. “It doesn’t really strike me as the best time to be adding capacity.”

Dow also invested in NuvoSun’s $5.9 million first funding round that closed in February 2010.

March 14, 2013　Dow 

Dow Accelerates Portfolio Management Actions to Divest Non-Core Businesses; Targets More Than $1 Billion in Proceeds

The Dow Chemical Company today announced additional actions to accelerate the Company’s ongoing commitment to aggressive portfolio management, as outlined at its Investor Forum in December 2012. As a result of thorough, ongoing portfolio reviews in a slow-growth world, Dow is targeting an increased divestiture list of nearly $1.5 billion over the next 18 months. Further, the Company has identified two units that will be actively marketed for divestment: Dow’s Polypropylene Licensing and Catalysts business unit and its Plastics Additives business unit.

“Today’s announcement is yet another proof point of Dow’s rigorous focus on return on capital, and is squarely in line with commitments we made earlier this year,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “We are reviewing our entire portfolio and seeking even further opportunities to optimize value: selectively pruning assets that are no longer a strategic or financial fit – all in an effort to accelerate value creation and deliver long-term, sustainable growth for the Company.”

These actions are the latest in a series of steps the Company has taken to further enhance Dow’s leadership position in high-margin, fast-growing end-markets, while simultaneously optimizing the value of assets. Since 2009, Dow has divested non-core businesses representing approximately $8 billion in revenue. In January, the Company divested the stabilizers component of its Plastics Additives business, and entered into a definitive agreement to sell its 50 percent ownership in Nippon Unicar Company Limited (a Japanese joint venture in the Dow Electrical and Telecommunications business).

2013/1/31
PMC Group N.A., Inc. announced today that it has completed the acquisition of the global methyl tin stabilizers and solid lubricants 固体潤滑剤　business of The Dow Chemical Company.

About Dow Polypropylene Licensing and Catalysts

Dow Polypropylene Licensing and Catalysts offers industry-leading technology for producing polypropylene, including UNIPOL™ PP Process Technology, CONSISTA™ D7000 Donor and SHAC™ Catalyst with Advanced Donor Technology (ADT).

About Dow Plastics Additives

Dow Plastics Additives is a worldwide supplier of additives used in a large variety of applications ranging from construction materials and packaging containers to consumer appliances and electronics, business machines and automotive parts.

March 18, 2013 Dow       　　

Dow Progresses its U.S. Gulf Coast Investments, Develops Plans for Performance Plastics Facilities
     Shale Gas Advantage Positions Dow for Growth while Driving U.S. Economic Revitalization and Job Creation
   　　
The Dow Chemical Company announced today that it intends to build several new, specialty material production units aligned to its high value Performance Plastics franchise on the U.S. Gulf Coast. The move further connects the Company’s U.S. manufacturing operations with cost-advantaged feedstocks available from increasing supplies of shale gas in North America, while also creating thousands of new, high-paying jobs across the country’s manufacturing sector.

Collectively, Dow expects the new Performance Plastics facilities will employ up to 3,000 workers at construction peak. Over the next five to seven years, Dow estimates that these projects, together with all other planned projects previously announced as part of the Company’s comprehensive U.S. Gulf Coast investment plan, will employ approximately 5,000 workers during peak construction and support over 35,000 jobs in the broader U.S. economy.

“These new facilities will include a wide range of technologies that will produce differentiated, high performance materials for the fastest growing segments in Dow’s existing markets, while providing access to new markets and applications,” said Jim Fitterling, Dow Executive Vice President. “These investments are also aimed at businesses that have consistently delivered a higher return on capital, which is clearly aligned with our long-term strategy. This, coupled with an enhanced market and value chain focus in our high value Performance Plastics franchise, will deliver faster growth with lower earnings volatility.”

Production Units Enter FEED Phase, Target Dow’s Fastest Growing Markets

The new facilities are in the Front End Engineering and Design (FEED) phase that will be completed in 2014. These facilities will manufacture competitively advantaged materials for several of the Company’s fastest growing market segments, including Packaging; Hygiene and Medical; Electrical and Telecommunications; Transportation, Sports and Leisure and Consumer Durables. The new capacity will be targeted at projected growth in North and South America in addition to select export opportunities over the coming decade. Dow is currently exploring specific location options on the U.S. Gulf Coast, with final investment locations to be determined at a later date.

Specific production units include the following:

Previously announced Next Generation NORDEL™ metallocene Ethylene Propylene Diene Monomer (EPDM) for Transportation, Infrastructure, Electrical & Telecommunications;　　　　Dow Announces Plans for a New NORDEL™ IP Hydrocarbon Rubber Plant
High Melt Index (HMI) Elastomers for Dow’s AFFINITY™ brand of Hot Melt Adhesives;
ELITE™ Enhanced Polyethylene for high performance flexible packaging and hygiene & medical applications;
Specialty Low-density polyethylene (LDPE) to serve demand growth in packaging and electrical & telecommunications market segments.

Strategically Aligned Growth

These moves directly support Dow’s transformational strategy to create additional competitive advantage for Dow’s Performance businesses by expanding access to advantaged natural gas-based feedstocks. These new units will utilize building block materials from a new, previously announced ethylene production facility slated for start-up in 2017.

Dow Progresses Comprehensive U.S. Gulf Coast Growth Plan

Additional projects within the Company’s U.S. Gulf Coast investment strategy are moving forward according to schedule.

Actions to improve ethane feedstock flexibility and increase ethylene supply at the Company’s Louisiana Operations site in Plaquemine, La. in 2015 are progressing on schedule.

Construction work for a new propylene production facility at Dow Texas Operations commenced in January 2013, and the project is on track towards a scheduled start-up in 2015. The construction project is expected to create 1,300 jobs at its peak and will provide building blocks for Dow’s epoxies and polyurethanes franchises.

Plans to construct a new, world-scale ethylene facility at Dow Texas Operations are progressing in alignment with Company targets. Dow’s Board of Directors recently authorized capital to progress the project through detailed engineering and purchase long lead time equipment for the facility. This unit will be the primary supply to the newly announced Idemitsu / Mitsui joint venture.

In addition, an ethylene production unit at Dow St. Charles Operations successfully restarted in December 2012, meeting Company targets to re-start the plant by year-end 2012.

Dow also announced today an initial agreement for a long-term ethylene off-take arrangement with a new joint venture to be formed between Idemitsu Kosan Co., Ltd., and Mitsui & Co., Ltd., of Tokyo, Japan. Idemitsu and Mitsui will form the joint venture to construct and operate a world-scale, Linear Alpha Olefins unit on the U.S. Gulf Coast. The JV will utilize an integrated supply of ethylene from Dow’s U.S. Gulf Coast production grid to produce Linear Alpha Olefins used as comonomers throughout Dow’s high value Performance Plastics franchise.
　　　　Dow Enhances U.S. Gulf Coast Integration with New Idemitsu/Mitsui Joint Venture

May 16, 2013　Bloomberg      

Dow Chemical Damages Hit $1.2 Billion in Urethane Case

Dow Chemical Co. was ordered to pay a $1.2 billion judgment in a urethane price-fixing case after losing its bid to undo a jury’s verdict that it colluded with competitors.

U.S. District Judge John W. Lungstrum in Kansas City, Kansas, today denied Dow Chemical’s request to overturn the $400 million February jury verdict. Damages were tripled under U.S. antitrust law.

2013/2/27   Dow Chemical、ポリウレタン独禁法違反裁判で有罪

It’s the biggest U.S. verdict of 2013, according to data compiled by Bloomberg News.

Dow said in a statement it will appeal.

Lungstrum rejected the company’s challenge to the verdict on grounds the purchaser plaintiffs alleged a conspiracy spanning the years 1999 to 2003 and were unable to prove its existence prior to November 2000.

“The absurdity of its premise -- that Dow could escape liability for an illegal antitrust conspiracy because plaintiffs alleged a longer conspiracy than found by the jury -- convinces the court that it should not create new law by adopting Dow’s position,” the judge said in a 30-page ruling.

2005 Allegations
The case started in 2005 with allegations that Dow plotted with BASF SE, Huntsman International LLC and Lyondell Chemical Co. in violation of federal law. Only Dow didn’t settle.

At the heart of the suit were urethane-based products used in the automotive, construction, appliance and furniture industries.

Dow denied the price-fixing allegations, maintaining there were legitimate business reasons for the evidence the plaintiffs cited as proof of their claims.

“Dow will appeal the judgment entered against it today,” Rebecca Bentley, a spokeswoman for the Midland, Michigan-based company said in an e-mailed statement. “We believe that the jury’s findings required that judgment should have been entered in Dow’s favor.”

A U.S. Justice Department probe into the matter was closed in 2007 with no charges being filed, Bentley said.

The company also contended Lungstrum erred in not decertifiying the purchaser class based on a March 2013 U.S. Supreme Court ruling. In that case, involving cable-television service provider Comcast Corp., the high court rejected a damages theory propounded by the same expert used by the urethane buyers in Dow.

Expert’s Testimony

The chemical maker didn’t object to the expert’s testimony before or during the trial, Lungstrum said.

The expert, James McClave, testified to a causal link between the single price-fixing conspiracy alleged at trial and the impact on the plaintiffs, according to the judge.

“Dow had every opportunity to cross-examine him about whether the impact on plaintiffs could have resulted from some other wrongdoing,” Lungstrum said. The judge concluded there was no basis for finding that McClave’s methodology couldn’t provide an adequate link between the theory of liability and classwide impact.

“What Dow did was wrong,” buyers’ lawyer Joseph Goldberg told the jury Feb. 19 in his closing arguments. “It colluded with its competitors and entered into a price-fixing conspiracy.”

David Bernick, a lawyer for Dow, disputed that allegation in his own summation.

What ‘Cartel’

“What kind of cartel is it where everybody is doing exactly what they would be doing otherwise?” the Dow lawyer asked jurors.

The purchasers’ case was “empty of truth, empty of facts and empty of fairness,” said Bernick, a partner in New York-based Boies Schiller & Flexner LLP.

“An agreement can be just a wink and a nod,” Goldberg told the jury. He said such schemes aren’t agreed upon in corporate board rooms. They’re hatched in back rooms, on golf courses and over cocktails, he said.

The case is In re Urethane Antitrust Litigation, 04-md-01616, U.S. District Court, District of Kansas (Kansas City).

 

May 24, 2013 Dow

Dow Begins Deploying K-Dow Award to Balance Sheet
   Lays Out Plan to Reduce Nearly $2 Billion in Debt in 2013, with Nearly $1.6 Billion Debt Reduction in 2Q13 Alone

The Dow Chemical Company today announced it plans to deploy part of its recent payment from the Petrochemical Industries Company of Kuwait (PIC) to reduce up to $2 billion in debt in 2013. In addition, Dow is examining other ways to reduce high-cost instruments from its balance sheet. This is consistent with previous statements regarding Dow’s priorities for use of cash.

Taken on the whole, Dow’s current and planned actions are expected to deliver more than $100 million in annual interest expense savings once complete, and are expected to bring the Company’s net debt to total capital ratio to well below 40 percent.

“This is yet another strong example of the deliberate actions Dow is taking to further enhance our financial flexibility,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “We have been clear and consistent with our prioritized uses of cash, and our recent arbitration award from PIC enables us to take additional aggressive steps to substantially reduce our debt and therefore our interest expenses – positioning Dow well to further increase our earnings, and thus paving the way for future shareholder remuneration. These actions will effectively restore our net debt to capital ratios to pre-2008-crisis levels, as we continue to review additional means to reduce our financing costs.”

Liveris also stated, “Importantly, Dow has maintained full ownership of its industry-leading plastics franchise, which has delivered exceptional returns and is poised for even further margin expansion due to positive exposure to shale-gas and ethylene value chain dynamics.”

Today’s announcement brings Dow’s current debt-reduction activities in the second quarter of 2013 to nearly $1.6 billion, and includes today’s notice of redemption, to occur on June 24, of $1.25 billion of the Company’s outstanding 5.90% Notes due in 2015, as well as the Company’s notice of redemption of certain outstanding InterNotes and the redemption of certain tax exempt bonds – two actions that were announced earlier this month and are also scheduled to be completed by the end of the second quarter. Additional debt-reduction activities of up to $400 million are planned for the second half of the year.

Details Regarding the Redemption of the 5.90% Notes Due 2015:

As noted above, Dow today announced a full redemption in the principal amount of $1,250,000,000.00 of the Company’s outstanding 5.90% Notes due 2015 (the “Notes”) issued pursuant to an Indenture dated as of May 1, 2008 (the “Indenture”) between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee.

Pursuant to the terms of the Indenture, the Notes will be redeemed in full on June 24, 2013 (the “Redemption Date”) at a redemption price equal to the greater of (1) 100% of the principal amount thereof, and (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such interest payments accrued as of the Redemption Date), discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the Notes and determined on the third business day prior to the Redemption Date) plus 50 basis points, as set forth in the Notes, along with accrued and unpaid interest up to, but not including, the Redemption Date. On the Redemption Date and upon the Company’s payment of the redemption price, all rights of holders with respect to the Notes being redeemed will terminate, except for the right to receive payment of the applicable redemption price upon surrender of the Notes for redemption.
 

July 12, 2013 AFP

S. Korea court orders US firms to pay up over Agent Orange

South Korea's highest court on Friday upheld a ruling ordering two US Agent Orange makers to compensate 39 Vietnam War veterans, while sending another decision back to a lower court for review.

The Supreme Court recognised the correlation between the toxic defoliant and certain skin diseases, saying the 39 victims should receive a total of 466 million won ($415,000) from Dow Chemical and Monsanto.

The veterans had complained that Agent Orange was responsible for skin diseases such as "chemical acne"座瘡, which is caused by exposure to dioxin contained in Agent Orange, the court said.

Payment is now up to the US firms, but Dow Chemical said in a statement quoted by Yonhap news agency that it disagreed with the Supreme Court's decision, arguing that the verdict was not backed by clear evidence, citing US court rulings.

The South Korean court also sent back an appeals court verdict that the two firms should compensate thousands of other veterans who claimed to have similarly suffered from exposure to defoliants used during the Vietnam War.

More than 16,000 veterans退役軍人 filed separate lawsuits in 1999 against the US firms, seeking about five trillion won ($4.4 billion) in damages, but a district court ruled against them.

In 2006, an appeals court ordered the US firms to pay a total of 63 billion won ($61 million) in compensation to 6,795 veterans and their families.

But the Supreme Court, in its ruling on Friday, sent the case back to the appeals court for further review.

"There is no evidence their diseases were caused by their exposure to the defoliant sprayed during the Vietnam War," it said in a statement.

South Korea sent some 300,000 troops to fight alongside the United States and southern Vietnamese forces during the war.

US forces widely sprayed Agent Orange, which contained the lethal chemical dioxin, in Vietnam during the conflict to deprive enemy guerrillas of forest cover and destroy food crops.

Veterans in South Korea estimate the number of Korean victims of the chemicals at about 150,000. Many insisted they were suffering from various ailments associated with exposure to the powerful herbicide.

Vietnam says millions of its people have died or suffered from direct or second-generation disabilities as a result of the use of Agent Orange.

Washington has never accepted responsibility for the Vietnamese government's claim.

枯れ葉剤被害５兆ウォン訴訟で敗訴…韓国最高裁「因果性立証は不可」

2013年07月13日  中央日報/中央日報日本語版]
 
  １２日、ソウル瑞草洞の最高裁庁舎２号法廷。訴訟から１４年目、枯れ葉剤被害補償訴訟に対する最高裁の宣告があった。最高裁３部のキム・シン裁判長は「長い間激しく争ってきた当事者に敬意を表する」と述べた後、判決文を読み始めた。「現在１万６５７９人の原告のうち、塩素性にきび症状がある３９人を除いたそのほかの原告の病気と、枯れ葉剤に含まれたダイオキシンとの因果性は立証できない」という要旨だった。

  塩素性にきびは枯れ葉剤成分（ＴＣＤＤ）に露出した人の顔に水疱や皮脂のようなにきびが生じる症状。米国も認めない枯れ葉剤と病気の因果関係を世界で初めて一部認めたが、その範囲は極めて限られた。賠償額は１人当たり６００万−１４００万ウォンずつ計４億９０００万ウォン（約４４００万円）。二審は６７９５人に６０７億ウォンの賠償を命じる判決を出した。キム裁判長は「気の毒な立場だけをもって判決をすることができなかった」と述べたが、事実上、原告敗訴判決を下したのだ。

  １９９９年９月末、ソウル地裁（現ソウル中央地法）に提起されたこの訴訟は、訴訟参加者１万７２０６人、訴額５兆１６１８億ウォン、弁護団１００余人など国内民事訴訟の各種記録を塗り替えた。被告は６０年代末にベトナム戦争で使用されたエージェントオレンジという除草剤（枯れ葉剤）を作った多国籍化学企業ダウケミカルとモンサントだった。

  枯れ葉剤に露出した軍人と民間人に５−１０年後、がんと神経疾患症状が表れ始めたことが伝えられ、ベトナム戦争に参戦した米国・豪州・ニュージーランド軍人は７８年、米国の会社を相手取り集団訴訟を起こしたが、訴訟を取り下げる条件として２億４０００万ドルの補償を受けた。最大参戦国の韓国は後にこれを知り、９３年に在米同胞弁護士を通して訴訟を起こした。しかし「訴訟資料不足」という理由で訴訟取り下げ命令を受け、国内の裁判所にまた訴訟を起こしたのだ。

  争点は３つ。▼枯れ葉剤と原告の症状の因果関係▼枯れ葉剤露出から１０年が過ぎたという訴訟時効▼裁判管轄権が韓国裁判所にあるかどうか−−だ。一審が因果関係の立証のために原告全員に血液鑑定を受けることを要求すると、原告側は「１人当たり数百万ウォンかかる血液鑑定は必要ない」と主張した。２００２年５月に裁判所は「因果関係を確認できず、時効も過ぎた」として原告敗訴判決を出した。

  ４年後、劇的な反転があった。０６年１月に控訴審を引き受けたソウル高裁が「原告が主張する枯れ葉剤の後遺症のうち塩素性にきびをはじめ、非ホジキンリンパ腫・軟組織肉腫・ホジキン病・肺がん・多発性骨髄腫・２型糖尿病など１１の症状が除草剤の副産物ダイオキシンと因果関係がある」とし、一審判決を覆した。これらの病気とダイオキシンの間に疫学的な相関関係があるという米国立科学院の疫学調査報告書が根拠となった。

  しかし喜びもつかの間。上告審を引き受けた最高裁は宣告を先延ばしした。事件が複雑で検討する記録が多いという理由だった。すると「最高裁判事が職務を遺棄している」という非難があふれた。結局、最高裁は上告７年目のこの日、二審判決をほとんど覆す最終結論を出した。

  裁判所は「病気のうち塩素性にきびは枯れ葉剤の露出と明らかに直接的な因果関係があると証明されたが、そのほかの病気は多様な誘発要因があるだけに、必ずしも枯れ葉剤のために発病したと見なすことはできない」と説明した。
July 08, 2013   Dow

Shanxi Coking Co. Ltd., to Use UNIPOL™ Technology from Dow

Shanxi Coking Co. Ltd., has signed a license agreement for UNIPOL™ Polypropylene Process Technology with Union Carbide Chemicals & Plastics Technology LLC, a wholly owned Subsidiary of The Dow Chemical Company.

Shanxi Coking is the 14th UNIPOL PP Technology licensee to sign in China since 2006. The 400 KTA plant is expected to start up in 2015 and will produce homopolymers, random copolymers and impact copolymers. The plant will be located in Hongdong City in the Shanxi Province山西省 臨汾市 洪洞県

Based in Hongdong County, Shanxi Province, China, Shanxi Coking is a subsidiary of Shanxi Coking Coal Group (SCCG), one of the largest coal coking enterprises in the Shanxi province.

“The UNIPOL PP Process, Shanxi Coking’s customer will benefit from the ability to produce polypropylene products that are lighter and cleaner,” said Tracy Cleckler, president of Union Carbide Chemicals & Plastics Technology LLC. “Shanxi Coking, along with all UNIPOL PP Technology licensees, benefit from Dow’s donor and catalyst expertise, long-term support and continuous technology investments.”

Resins produced by UNIPOL Polypropylene Technology from Dow account for 17 percent of global polypropylene output. Polypropylene is a versatile plastic used in packaging, durable goods, automotive parts, non-wovens, fibers and consumer applications.

With the least complex PP process technologies available and low investment costs, Dow’s UNIPOL PP Process Technology positions polypropylene manufacturers to meet and exceed increasing demand for high quality polypropylene.

There are currently 48 operating lines worldwide and 15 licensees under design and construction using UNIPOL Polypropylene Technology from Dow Polypropylene Licensing and Catalysts. The UNIPOL Polypropylene Process is an all gas-phase process for producing the broadest range of polypropylene resins. The simple design is consistent in terms of product quality and energy efficiency, requiring no equipment for handling, separating or recycling solvents. The system’s fluidized-bed reactors and high performance CONSISTA™ and SHAC™ Catalyst Systems give manufacturers the flexibility to produce homopolymers, random copolymers and impact copolymers.

2013/7/26   M&A Navigator via COMTEX 

Dow Chemical weigh sale of three units - CEO

The Dow Chemical Company is evaluating all options for three business units, including their sale, chairman and CEO Andrew Liveris was cited as saying by Bloomberg.

The units in question are industrial paint, building products outside North America and chlorine derivatives.

During the conference call that followed the release of Dow's second-quarter financial results, Liveris said that the three businesses were performing below expectations as competition squeezed profit margins. As he put it, "more dramatic interventions" were called for in an economy where growth is hard to achieve.

A sale would be fine but Dow is also looking at possible joint ventures. Bloomberg added that the potential divestment candidates had combined revenues of $6bn (EUR4.5bn). The news agency also reminded that Dow had already announced plans to dispose of three other units by the end of this year: plastics additives, polypropylene licensing and catalysts and fumigants. These businesses have combined revenues of USD1.5bn.

Country: USA Sector: Chemicals Target: Dow Chemical epoxy unit, Dow Chemical chlorine derivatives unit, Dow Chemical building products unit Vendor: The Dow Chemical Company Type: Divestment Status: Auction

August 27, 2013 Dow

Dow Confirms U.S. Site Selections for Expansions to Leading Plastics Brands; Texas and Louisiana Chosen for Investments that Address Fast-Growing End Markets

As part of its focused investment strategy on the U.S. Gulf Coast to integrate advantaged shale gas, The Dow Chemical Company confirmed today the locations for expanding four of the Company’s leading brand franchises in Texas and Louisiana.

These actions, together with the Company’s collective, high-return investments in this region, are expected to drive strong revenue growth and generate approximately $2.5 billion in EBITDA once fully operational, enabling Dow to address growing customer and value chain demand in attractive markets such as food packaging, transportation and infrastructure, hygiene and medical, and electrical and telecommunications markets globally.

Construction is scheduled to begin soon on these investments, which were initially announced in March 2013, and are aligned with Dow’s industry-leading Performance Plastics franchise.

Strategic growth in NORDEL™ metallocene EPDM, AFFINITY™ brand polymers, and ELITE™ polymers build on a successful legacy of Dow innovation in consumer and industrial products such as flexible food packaging, diapers and nonwoven hygiene products, packaging for medical utensils, automotive and appliances, wire casings for telecommunication cables, roofing membranes and other infrastructure applications.

“Dow Performance Plastics is the world’s leading plastics franchise and with these expansions Dow will be able to further leverage our cost-advantaged position and R&D expertise to deliver leading edge technology that provides a competitive benefit to our customers in many of our most strategic markets,” said Jim Fitterling, Executive Vice President for Dow, “Our history on the U.S. Gulf Coast reaches back more than 70 years, and we’re proud to continue our commitment to this important region with these strategic and accretive investments."

In Freeport, Texas, Dow will expand its High Melt Index (HMI) AFFINITY™ brand polymer franchise. These materials deliver stronger bonding in hot melt packaging adhesives. The Company will also expand its ELITE™ polymer franchise which delivers enhanced durability and flexibility for food packaging, hygiene & medical, and industrial and consumer packaging markets. Both of these brands are powered by Dow's proprietary INSITE™ catalyst technology.

In Plaquemine, Louisiana, Dow will expand its NORDEL™ metallocene EPDM franchise with next generation technology. Also powered by INSITE, NORDEL mEPDM provides the infrastructure, automotive, consumer durables, appliance and electrical and telecommunications markets with highly flexible, heat and chemical resistant polymers that deliver enhanced durability and long service life. Also in Plaquemine, Dow will expand its Low Density Polyethylene (LDPE) family of high performance polymers like AGILITY™ that are faster to process, more stable and deliver improved optics for applications in flexible food packaging.

October 11, 2013 Dow

Dow Divests Global Polypropylene Licensing & Catalysts Business
    Driving Divestment Agenda of More than $1.5 Billion Through Focused Actions

The Dow Chemical Company announced today that it has signed a definitive agreement under which Dow’s global Polypropylene Licensing & Catalysts business will be divested to W. R. Grace & Co. for a sale price of $500 million. Dow expects to report a gain on this divestment and net proceeds will be directed toward the Company’s main priorities of remunerating shareholders, debt reduction and funding growth. The transaction is expected to close by the end of 2013, pending regulatory clearance.

Dow had previously announced its intent to divest this business on March 14, 2013, as part of the Company’s ongoing commitment to proactive portfolio management and plan to divest nearly $1.5 billion in assets by mid to late 2014.

2013/3/19  Dow Chemical、非中核事業の資産売却を促進

“Today’s announcement is another clear demonstration of Dow’s rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Our accelerated strategy is focused on narrowing our market participation and preferentially funding our select growth businesses with strong competitive positions in attractive markets such as electronics, water, packaging and agricultural sciences. We are planning further proactive divestments in the next 12 months in our relentless pursuit of rewarding shareholders.”

The divestiture includes Dow’s polypropylene catalysts manufacturing facility at Norco, Louisiana,(1) and customer contracts, licenses, intellectual property and inventory.

Approximately 90 employees globally are expected to transition employment status to W. R Grace & Co. as part of the transaction. Under terms of the purchase agreement, W. R. Grace & Co. will honor customer, licensing and supplier contracts and related agreements. Both companies are committed to working together for a seamless transition for all stakeholders.


1The Norco assets are owned by Union Carbide Corporation, a wholly-owned subsidiary of The Dow Chemical Company.

------

W.R. Grace

Grace is a leading supplier of polyolefin catalyst technology and has the broadest portfolio of polyolefin catalyst technologies of any independent polyethylene/polypropylene catalyst producer.

“The addition of Dow’s world-class polypropylene products and process technology is a significant enhancement of Grace’s market-leading catalysts franchise,” said Grace Chairman and Chief Executive Officer Fred Festa. “The agreement reflects Grace’s continuing commitment to invest in our catalyst businesses, particularly in technology. This acquisition strengthens our ability to provide polypropylene catalyst solutions to our customers around the world.”

Grace is a leading global supplier of catalysts; engineered and packaging materials; and, specialty construction chemicals and building materials. The company’s three industry-leading business segments—Grace Catalysts Technologies, Grace Materials Technologies and Grace Construction Products—provide innovative products, technologies and services that enhance the quality of life.

Grace Catalysts Technologies
We manufacture specialty catalysts and related products used in chemical manufacturing applications. Our products include petroleum refining catalysts and additives, and catalyst systems that support the petrochemical industry.

Grace Materials Technologies
We manufacture value-added, materials-based specialty products for a variety of industrial, consumer, food/beverage, pharmaceutical and packaging applications.

Grace Construction Products
We provide specialty construction chemicals and specialty building materials, as well as systems and services that strengthen, enhance and protect structures.
----------

1) Refining Technologies

Fluid catalytic cracking, or FCC, catalysts, that help to “crack” the hydrocarbon chain in distilled crude oil to produce transportation fuels, such as gasoline and diesel fuels, and other petroleum based products;
FCC additives used to reduce sulfur in gasoline, maximize propylene production from refinery FCC units, and reduce emissions of sulfur oxides, nitrogen oxides and carbon monoxide from refinery FCC units.

2) Advanced Refining Technologies

Advanced Refining Technologies (ART) is our joint venture with Chevron Products Company in which we hold a 50% economic interest. Its products include hydroprocessing catalysts that are used in process reactors to upgrade heavy oils into lighter, more useful products by removing impurities such as nitrogen, sulfur and heavy metals, allowing less expensive feedstocks to be used in the petroleum refining.

3) Specialty Catalysts

Polyolefin catalysts and catalyst supports for the production of polypropylene and polyethylene thermoplastic resins, which can be customized to enhance the performance of a wide range of industrial and consumer end-use applications including high pressure pipe, geomembranes, food packaging, automotive parts, medical devices and textiles;
Chemical catalysts used in a variety of industrial, environmental and consumer applications;
Catalysts and adsorbents for the efficient conversion of renewable feedstocks to fuels and chemicals.


2013/12/3  日経　

米ダウ・ケミカル、塩素事業から撤退　三井物産との合弁も売却

　米化学大手ダウ・ケミカルは２日、塩素事業の大半を売却すると発表した。世界首位とみられる同事業から事実上撤退する。売却する事業は年間売上高で50億ドル（約5150億円）に相当する。ダウは事業の「上流」に当たる基礎素材から、最終製品に近く利益率の高い「下流」の化学製品に軸足を移しており、今回の事業撤退は上流事業リストラの一環だ。

　塩素は塩を電気分解して作る化学品の基礎原料で、建材や包装資材に加工される塩化ビニール樹脂の原料になる。ダウは20世紀初頭に塩素製造の大手となり、塩素系事業は石油化学と並ぶ２大柱だった。リバリス最高経営責任者（ＣＥＯ）は「この事業は何十年にわたりうまくいってきたが、当社が撤退を進めている市場でもある」と説明した。

　塩素事業は40工場を持ち、同業他社などに売却するほか、一部は分離独立する可能性もある。米テキサス州にある三井物産との電解事業合弁の持ち分も売却対象として明記した。

　ダウはテキサス州に新型エネルギーのシェールガスを利用したエチレン生産の巨大工場を建設する。その一方で汎用素材や基礎化学原料など不採算分野をリストラし、事業の選択と集中を進めている。

December 02, 2013 Dow

Dow Announces Carve-Out Scope for $5 Billion of Commodity Chemicals Businesses

Right-Sizes Chlorine Footprint to Meet Dow’s Downstream Needs in High-Growth Markets;
Assigns Leadership Team to Commence Transaction Process;
Will Redeploy Resources and Cash Proceeds to Maximize Shareholder Value

The Dow Chemical Company today detailed the scope of a separation of a significant portion of its chlorine value chain. These assets are being carved out for future transactions, and represent up to $5 billion of total annual revenue, inclusive of sales on the merchant market and sales to support Dow’s downstream, value-added products. The scope includes approximately 40 manufacturing facilities at 11 sites, and nearly 2,000 employees.

“Today’s announcement represents a continuation of the shift of our Company toward downstream high-margin products and technologies that customers value, and generate consistently higher returns than cyclical commodity products. We are committed to prioritize our resources such that we maximize total shareholder return,” said Andrew N. Liveris, Dow’s chairman and chief executive officer.

“These businesses have served us well over decades, but are serving markets that Dow has exited over time, and we are therefore right-sizing our upstream integration to match the downstream focus that we started a decade ago,” Liveris added. “Separating these business units will allow us to further optimize the way they can be operated; and we believe different owners will be able to extract maximum value from these highly competitive assets and their related markets.”

Today’s announcement outlines a clearly defined scope of businesses that are located in attractive regions and are backed by a low-cost energy position attractive for producers of chlorine-based chemicals such as caustic soda and PVC. Further, they are coupled with businesses that command industry-leading positions with world-scale assets and global capabilities.

Assets included in this carve-out are:

  • Dow’s U.S. Gulf Coast Chlor-Alkali and Chlor-Vinyl facilities in Plaquemine, LA, and Freeport, TX, including Dow’s interest in the Dow Mitsui Chlor-Alkali joint venture in Freeport, TX;
  • Dow’s Global Chlorinated Organics production facilities in Freeport, TX; Plaquemine, LA and Stade, Germany;
  • Dow’s Global Epoxy business, including assets in Freeport, TX; Roberta, GA; Rheinmuenster, Germany; Pisticci, Italy; Baltringen, Germany; Stade, Germany; Gumi, South Korea; Zhangjiagang, China and Guaruja, Brazil; and
  • Dow’s brine and select assets supporting operations in Freeport, TX and Plaquemine, LA; and energy operations in Plaquemine, LA.

In addition to these separation actions, the Company also announced that it will shut down approximately 800,000 tons of chlorine and caustic equivalent capacity in Freeport, Texas. The capacity being shut down will be replaced with supply from new facilities that will come online with the start-up of the Dow Mitsui joint venture in early 2014. The shutdowns will help maintain Dow’s balances and will be coordinated with the start-up of the joint venture.

 Dow Mitsui JV
生産能力は苛性ソーダ約88万トン、塩素約80万トン

Building on Dow’s proven track record of successfully completing complex carve-outs, Dow’s Executive Vice President Jim Fitterling will oversee the separation and transaction activities.

“Due to the highly integrated nature of the chlorine value chain, we are conscious not to leave any stranded costs or create negative synergies,” said Fitterling. “Further, we anticipate that any related transaction or transactions will include supply and purchase agreements between these units and the Company to support downstream products aligned with Dow’s strategic market focus.”

In addition, the following leaders with strong experience in the chlorine value chain will lead the carved out businesses, optimizing operations and ensuring business success in anticipation of transaction:

  • Pat Dawson, President – Epoxy
  • Clive Grannum, President – Chlorinated Organics
  • Jim Varilek, President – Chlor Alkali & Vinyl North America

Dow has retained financial advisors to explore all separation alternatives for these businesses, including potential ownership structures and partnerships such as joint ventures, spin-offs and divestitures, and expects to execute transaction activities related to these businesses within the next 12 - 24 months. These transactions can be in pieces or on the whole of the announced scope.

In the past 12 months, Dow has completed or announced transactions totaling $700 million, including the recently announced definitive agreement to divest its global Polypropylene Licensing & Catalysts business. In anticipation of this separation, the Company announced in October it had expanded its divestiture target to $3 billion – $4 billion in proceeds over the coming 18 to 24 months. In line with the Company’s stated commitments, Dow expects to direct proceeds of these transactions toward increasing shareholder remuneration, organic growth investments and additional interest expense reductions.

 

2/28/2014                                                                            cf    2008/6/25 Bhopal 事件のその後

Voltas, Dow Chemical Pacific To Establish JV In India

Voltas Ltd. has executed a joint venture agreement with Dow Chemical Pacific (Singapore) Pte. Ltd. for establishing a joint venture company, to tap the growing water and waste water treatment market in the country.

Voltas is India's largest air conditioning company, and one of the world's premier engineering solutions providers and project specialists.
Founded in India in 1954, Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

The proposed new company - 'Voltas Water Solutions Pvt. Ltd.' will have equal capital contribution from Voltas and DOW.

The company will market and distribute standard packaged water treatment systems and waste water treatment systems of capacity up to 20m3/hour, to residential and commercial complexes and light industrial markets in the Indian subcontinent.

The entity's operations would include designing, procuring, testing, marketing, selling and servicing of such standard water treatment systems and waste water treatment systems.

The water and waste water treatment marker targeted by the new company is largely catered to today, by unorganized players. The new joint venture will provide a branded and differentiated product line, with a focus on quality and service delivery.

Dow Group Global Business Leader for the water and process solutions division Snehal Desai said, "We are proud to form an alliance with Voltas. Water treatment has significant business potential in India, and Voltas is an ideal partner with a strong brand reputation, and a wide-spread sales and service network. As part of our long-term strategy, we intend to establish the joint venture, to fully exploit the untapped potential of the Indian market. This joint venture is a significant step towards further strengthening our position in mid-market water systems in India."

Voltas Managing Director Sanjay Johri commented, "Water has been identified as a key focus area for the Tata group, and we are very happy to work with Dow Group, in this area. With its unrivalled know-how and technological leadership in the water treatment space, the partnership, will help Voltage Water Solutions cater to the growing water treatment requirements of the India subcontinent. The partnership will simultaneously leverage the brand and distribution strength of Voltas, along with the technology prowess of the water and process solutions divisions of the Dow Group. We will work towards establishing the joint venture as a leading provider of water treatment solutions."
 

March 31, 2014

Dow-Mitsui Chlor-Alkali Facility Achieves Successful Start-up
　　Joint venture facility provides advantaged chlorine, caustic sodaand ethylene dichloride to parent companies

The Dow Chemical Company announced today that its joint venture membrane chlor-alkali facility with Mitsui & Co., Ltd. of Tokyo, Japan successfully initiated full-scale, commercial production.

Dow’s share of the chlorine produced at the Dow-Mitsui Chlor-Alkali Freeport, Texas, facility will serve the growing feedstock needs of its performance- and market-driven businesses. In addition, Dow will market the caustic soda on behalf of the joint venture.

“This world-class facility allows us to capitalize on our modern and efficient membrane chlor-alkali technology and serves as a real-life proof point of how new, competitive energy resources in the U.S. are re-shaping the landscape of U.S. Gulf Coast manufacturing,” said James (Jim) R. Fitterling, Dow executive vice president. “This joint venture bolsters the integration strength of the chlorine value chain at the Freeport site in a capital efficient model that allows Dow to invest in more downstream technology and customer-driven businesses with higher and more consistent earnings.”

The new facility has a name plate capacity of approximately 800 kilotons per annum (KTA) of chlorine. As previously announced in December, 2013, this new world scale facility will replace 800 KTA of older capacity on the site.

2010/7/2　三井物産とダウ、合弁でテキサスで電解事業　

June 25, 2014

Dow to Begin Construction on New World-Scale Ethylene Production Facility in Texas on June 30

 
On June 30, The Dow Chemical Company will begin construction of its previously announced world-scale ethylene production facility, representing a prominent milestone in delivering on its strategy to invest in its performance-based portfolio of technology-enabled businesses. This significant investment in Dow’s Texas Operations in Freeport remains on track and on-plan for start-up in the first half of 2017, and will employ up to 2,000 workers during construction.

“This world-scale ethylene facility is a foundational element in Dow’s strategy to utilize low-cost and advantaged shale gas feedstocks to enable growth in key value-add market-driven businesses,” said Andrew N. Liveris, Chairman and Chief Executive Officer. “Collectively, Dow’s U.S. Gulf Coast investments serve as an integral component of our global growth strategy, where we are leveraging our first-mover advantage to deliver significant shareholder value, enabling the Company to achieve our near-term $10 billion EBITDA goal and beyond.”

With a nameplate capacity of approximately 1500 KTA, Dow’s new ethylene production facility is part of a multi-billion dollar investment. Alongside previously announced plastics and elastomers facilities, this will support market growth and expansions of Dow’s industry leading-leading Performance Plastics franchise that includes:

  • Next Generation NORDEL™ metallocene EPDM to serve the consumer durables, automotive and electrical cable markets. (Capacity: 200 KTA)
  • High Melt Index Specialty Elastomers used in hot melt adhesives for high performance flexible packaging, and hygiene and medical markets. (Capacity: 320 KTA)
  • ELITE™ Enhanced Polyethylene for high performance flexible packaging and hygiene & medical markets. (Capacity: 400 KTA)
  • New specialty low density polyethylene for protective packaging and power transmission markets. (Capacity: 350 KTA)

“When combined with our on-purpose propylene PDH project, which is more than 30 percent complete, this ethylene production facility takes Dow yet another step closer to realizing the full financial benefit of our Gulf Coast investment effort,” said Jim Fitterling, Executive Vice President, Feedstocks, Energy and Performance Plastics. “This investment will connect cost-advantaged raw materials to many of the Company’s highest-margin downstream businesses – including Performance Plastics – businesses that also consistently deliver a high return on invested capital. Once fully operational, our Gulf Coast investments are projected to deliver an estimated $2.5 billion in EBITDA and will serve as a solid base for long-term growth while further strengthening Dow’s market competitiveness.”

In total, Dow’s comprehensive U.S. Gulf Coast investments in Texas and Louisiana will employ 5,000 workers during peak construction. The projects announced for the Freeport site represent the majority of those workers, with 4,000 required for construction of multiple feedstocks, derivatives and supporting infrastructure projects.

Dow Texas Operations in Freeport is Dow’s largest integrated manufacturing site worldwide and the largest chemical complex in North America with more than 4,200 employees and 3,800 contractors on site daily.

Sep 25, 2014 Reuters

Dow Chemical launches sale of chlorine and epoxy units -sources

Dow Chemical Co has kicked off a process to sell its epoxy and chlorine businesses, hoping to find a single buyer for them in what is set to be a multibillion-dollar deal, according to people familiar with the matter.

The Midland, Michigan-based company has hired Goldman Sachs Group Inc and Barclays Plc to manage the process, the people said this week, adding that calls to potential buyers began this week.

Combined, the epoxy and chlorine businesses have annual earnings before interest, taxes, depreciation and amortization of close to $500 million, the people said.

The value of assets is not yet clear. It will depend on if and how they will be carved out of their contractual arrangements and the tax implications of their separation, the people cautioned. Initial estimates place their value between $3.5 billion and $4 billion, the people added.

Logical buyers might include companies in the sector such as Axiall Corp and Westlake Chemical Corp, as well as private equity firms experienced in chemicals such as Apollo Global Management LLC, the people said. Representatives for Axiall and Westlake did not respond to requests for comment, while Apollo declined to comment.

Georgia Gulf は2013年1月にPPG IndustriesのCommodity Chemical Divisionと合併し、Axiall Corp.となった。

A Dow representative confirmed that the company was moving forward with the sale of its U.S. Gulf Coast chlor-alkali and chlor-vinyl, global chlorinated organics, global epoxy, and brine and energy operations and supporting assets in Freeport, Texas, and Plaquemine, Louisiana.

"The carve-out and separation of these businesses is progressing and engaging with interested parties is part of that process," the representative said. Goldman Sachs and Barclays declined to comment.

Dow, which makes everything from insecticides to plastics, had previously said these and other units were earmarked for sale as part of an effort to divest several billion dollars worth of non-core assets by 2015.

Despite these commitments to sell assets, activist investor Daniel Loeb's hedge fund Third Point in January urged the separation of Dow's commoditized raw materials businesses from its specialty chemicals operations.

Dow has rejected the demands, arguing that keeping the businesses together helps curb costs.

Dow has already put additional assets on the block and raised the target of the proceeds it hopes to generate from the divestitures to $6 billion.

Dow has hired investment bankers including Morgan Stanley to sell its Angus Chemical Co subsidiary, as well as AgroFresh Inc, which could collectively fetch up to $2 billion, Reuters reported in August.

Dow has also engaged boutique investment bank Valence Group to solicit interest for its Sodium Borohydride unit, which could fetch more than $200 million, according to sources.

Last year, Dow agreed to sell its polypropylene licensing and catalysts business to smaller peer W.R. Grace & Co for $500 million.

Dow Chemical、PP ライセンス・触媒事業を売却

Sep 30, 2014                              2013/2/27   Dow Chemical、ポリウレタン独禁法違反裁判で有罪

Dow Chemical Hit with $1.1 Billion Fine

A U.S. appeals court has upheld a $1.1 billion antitrust ruling against Dow Chemical  that found the chemical giant conspired with competitors to fix prices in the polyurethane market.

Kansas City地裁の判事は2013年5月15日、陪審員決定を退けるよ求めたDowの要請を却下し、3倍賠償の12億ドルを支払うよう命じた。
その後、12億ドルから10.6億ドルに減額された。

The court of appeals in Denver, Colo. Monday backed a jury's May judgment in a class-action suit which alleged that between 1999 and 2003 Dow, BASF, Huntsman International and Bayer rigged prices for polyurethane products, harming buyers.
Polyurethane is used in consumer and industrial components such as mattress foams, insulation and footwear.

The court cited evidence at trial that included an admission of a price-fixing conspiracy by a Dow official.
Another key witness, from Bayer, described "inappropriate" conversations with competitors and testified that he would take unusual steps to conceal talks, such as using pay phones or meeting with competitors at coffee shops or hotels, the ruling said.
Dow sharply criticized the judgment, saying the matter was "thoroughly investigated" by the Justice Department and did not result in U.S. charges.
"Dow has always denied plaintiffs' allegations of price fixing and will continue to vigorously defend this litigation," the company said.
"Dow will seek further review of this decision, including, if necessary, an appeal to the United States Supreme Court."
Earlier BASF, Huntsman International and Bayer settled the accusations. BASF's settlement was $51 million, Huntsman paid $33 million, and Bayer $55 million.

---

The 10th U.S. Circuit Court of Appeals in Denver on Monday said new U.S. Supreme Court limits on class actions did not require Dow customers to sue individually, even if some could have avoided price hikes by negotiating or using rival products.

Dow is "extremely disappointed" in the decision and will appeal, including to the Supreme Court if necessary, the Midland, Michigan-based company said in a statement on Tuesday.

The decision shows that large class actions can still be sustained even after the Supreme Court, in 2011 and 2013 decisions favouring Wal-Mart Stores Inc  and Comcast Corp , made it harder to show that common questions predominated and damages could be readily determined.

　Wal-Mart Stores Inc

米連邦最高裁判所は2011年6月20日、米小売大手ウォルマートの女性従業員が同社を相手取り、待遇面で性別による差別を受けたとして損害賠償などを求めた訴訟について、集団訴訟として扱うことは認められないとの判断を下した。

この裁判が集団訴訟になれば原告資格を持つ人が約150万人という史上最大規模の集団訴訟になる可能性があったため注目を集めていたが、米連邦最高裁は、ウォルマートの女性従業員に対する雇用方針は包括的ではなかったため、女性従業員が受けたと主張する差別の内容はひとりひとり違う可能性があると判断した。

　 Comcast Corp

フィラデルフィア地域の住民が、ケーブルテレビ（CATV）のサービス料金が高すぎるのは、CATV米最大手コムキャストが競争相手を買収し、競争を制限したのが原因として集団訴訟を申し立てたことについて、連邦最高裁判所は2013年3月26日に申し立てを認めない決定を下した。

連邦最高裁の多数意見は、クラスアクションを認めるには、共通の争点が個人に固有の争点に対して支配的であること(共通争点の支配性)、クラスアクションが紛争解決の方法として、他の方法に比して、公平性及び効率性の点から優れていること(紛争解決方法としての優越性)について、証拠による証明を行わなければならないと判示した。

「共通争点の支配性」の要件を満たす為には、クラス全体に適用される損害算定方法を提示しなければならず、損害の算定方法は、法的責任(liability)についての主張と一貫性がなければならないと述べた。

原告の住民が勝訴した場合の損害賠償額の算定方法に関して、原告側が提示した方法を吟味しなくとも集団訴訟は進められるとした下級審の決定は誤りであるとの判断を示したもの。

、

Kansas City地裁の判事は2013年5月15日、陪審員決定を退けるよ求めたDowの要請を却下し、3倍賠償の12億ドルを支払うよう命じた。

Dowは控訴するとしている。

その後、12億ドルから10.6億ドルに減額された。

付記

控訴審は2014年9月29日、上記の地裁の判断を支持した。

　

陪審員裁判らしく、最終弁論では原告被告双方からカルテルについての説明が行われた。

被告側：
全員がいつもと変わらないことをやっているのが何がカルテルか？　単なる会話と取り決めとは別物で、価格カルテルはなかった。

原告側：
ウインクしたり、頷いたりするだけで協定は成立する。
陰謀は役員会議室で合意されるのではなく、裏部屋やゴルフコースやカクテルを飲みながら行われる。
もし、アヒルのようにガーガー啼き、アヒルのようにひょこひょこ歩けば、見なくても、それはアヒルだ。証拠は十分だ。

付記　ダウは裁判長に対し、有罪の証拠がないとして判決を取り消すように求めるとともに、集団訴訟の原告同士の被害が異なるとし、集団訴訟の要件である"共通性（commonality）"がないため、集団訴訟扱いを取り消すことを求めた。


October 02, 2014  Dow 

Dow Provides Updates on Planned Divestments Progress and Outlines Additional Portfolio Actions

 
The Dow Chemical Company today announced several updates regarding divestiture and portfolio management actions – demonstrating the Company’s commitment to previously established targets and its ongoing focus on shareholder value creation.

Progress against Divestiture Targets

In line with the Company’s plans to divest $4.5 billion to $6 billion of non-strategic businesses and assets by 2015, Dow is now confirming that its Angus Chemical Company, Sodium Borohydride and AgroFresh businesses are being actively marketed for divestment. The Company expects to complete signing of these transactions by year-end 2014, and close in early 2015. Collectively, these businesses are expected to yield proceeds greater than $2 billion.

Since its original patent application in 1936, ANGUS Chemical Company has developed and manufactured nitroalkane-based chemicals.
At ANGUS, we manufacture four basic nitroalkanes - nitromethane, nitroethane, 1-nitropropane, and 2-nitropropane.

Dow offers a product line of reagents (Sodium Borohydride and TriMethyl Borate)  for use in the synthesis of Fine Chemicals (Pharmaceuticals, Agrochemicals, Specialty Chemicals, Flavor and Fragrance, and Food Ingredients).

AgroFresh is a fast growing company dedicated to working with customers internationally to apply the benefits of its products and services, including its award-winning 1-MCP (1-Methylcyclopropene) based technologies that suppress ethylene development and its degrading effects on produce.

Agricultural Sciences Division Dow AgroSciences Seeds, Traits & Oils,  Ag Chemicals, Other: AgroFresh

In addition, Dow announced it has now completed the sale of a substantial portion of its North America rail car fleet, moving to a lease structure going forward – an action that generated nearly $450 million in cash proceeds and reinforced the Company’s commitment to identify alternative uses for capital.

Dow also continues to make solid progress on the planned carve-out of its U.S. Gulf Coast Chlor-Alkali/Chlor-Vinyl, Global Chlorinated Organics and Epoxy businesses, which collectively are expected to generate EBITDA in excess of $500 million annually. Dow is now actively working to stand up the carve-out within a separate structure, with more details forthcoming. The carve-out is receiving strong interest from the market and firm indications of interest are expected before year end, with signed agreements expected in early 2Q15.

In all cases, transaction options will be examined to ensure Dow generates maximum value for the businesses and its shareholders.

To date Dow’s completed divestiture actions total $1.3 billion, and the expected proceeds of the entire program will now be at the higher end of the Company’s $4.5 billion to $6 billion range.

Streamlining Dow’s Joint Ventures

As announced during Dow’s 2Q 2014 earnings call, the Company continues to assess opportunities to enhance the value created through its major joint ventures by simplifying the structure and focus of these partnerships and aligning them to Dow’s strategy.

The first such step is with Univation.
Dow has signed a definitive agreement with ExxonMobil Chemical Company regarding an ownership restructure of Univation Technologies, LLC.
Currently a 50/50 joint venture, Univation Technologies is the licensor of UNIPOL™ PE Process Technology and the leader in the development, manufacture and sales of PE catalysts for the UNIPOL™ PE Process – highly differentiated market-aligned solutions.
This transaction will result in Univation Technologies becoming a wholly-owned subsidiary of Dow. A valuable, high-margin business, Univation Technologies will enhance Dow’s industry-leading Performance Plastics franchise – further strengthening its leadership position in this high-demand technology.

Further, the Company is working rigorously to rationalize its position in joint ventures that – while valuable – no longer align with Dow’s strategy. More details are forthcoming by year-end 2014.

Commenting on today’s announcements, Dow’s Chairman and Chief Executive Officer Andrew N. Liveris said, “Dow’s strategy of being low cost, integrated in key products and adding value through technology in its markets, all the while applying a best owner mindset to our portfolio, is on display with these updates and announcements.”

“Through the actions we have taken and the plans in progress, we will have divested more than $14 billion in non-strategic businesses since 2009, while at the same time adding $18 billion in revenue via acquisitions and organically through targeted R&D, thus proving our complete focus on further accelerating Dow’s continued commitment to going deeper into attractive end-markets within its integrated value chains and products – all while enhancing return on capital and driving TSR even higher,” Liveris said. “In fact, our consistent execution against the plans we have firmly set has resulted in the Company’s achievement of TSR increases above the S&P Chemicals and S&P 500 on a 1-, 3-, and 5-year basis – with more upside on the way.”

 

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October 02, 2014  Dow

Dow and ExxonMobil Announce Agreement Making Univation Technologies a Subsidiary of Dow

 
The Dow Chemical Company and ExxonMobil Chemical Company, announced jointly today the signing of a definitive agreement to restructure the ownership of Univation Technologies, LLC, currently a 50/50 joint venture between affiliates of Dow and ExxonMobil. This transaction will result in Univation Technologies becoming a wholly-owned subsidiary of Dow aligned to its Performance Plastics operating segment.

“Univation Technologies is a global leader serving a growing, high-margin market,” said Cindy Shulman, president of Univation Technologies. “Univation remains committed to reliably serving our customers and licensees with the world’s leading gas phase polyethylene process technology and associated catalysts and looks forward to being aligned with Dow’s Performance Plastics franchise.”

Univation Technologies is the licensor of UNIPOL™ PE Process Technology and the leader in the development, manufacture and sales of PE catalysts for the UNIPOL™ PE Process. Univation Technologies will continue to license its UNIPOL™ PE Process Technology, including swing capability for linear low density polyethylene and high density polyethylene. Additionally, Univation Technologies will continue to develop and supply all catalysts, including: UCAT™ Conventional, ACCLAIM™ Advanced Unimodal, XCAT™ Metallocene and PRODIGY™ Bimodal Catalysts.

The transaction is expected to close by the end of 2014, pending regulatory approval. Dow and ExxonMobil are committed to working closely together to ensure a seamless transition for all stakeholders.


September 29, 2014  Dow 

Dow Launches New Material in Middle East for Energy Efficient Construction Solutions     

    New product specially designed to meet the critical quality requirements for “Cool Roofs” to perform in hot weather conditions

Dow’s Construction Chemicals will launch a  new technology  this week that meets the growing demand for energy efficient Cool Reflective Roof Coatings or “cool roofs” in the Middle East region.  The new material will be manufactured at Dow’s state-of-the-art production facility in Jebel Ali, UAE and is a critical component in cool reflective roof coating (CRRC) formulations.

When applied to exterior roof surfaces, cool roofs coatings help reduce the amount of air conditioning required in hot climates by reflecting solar heat rather than absorbing.    To introduce their new cool roof material and make clear the sustainable benefits of ‘cool roof’ coatings, Dow has planned a series of events this week in Dubai aimed at the building and construction sector. 

The new product is a water based acrylic polymer which was designed specifically for the conditions in the Middle East of extreme warm temperatures, sun and dust.    It is the latest development from Dow Construction Chemicals which has years of experience in developing products for elastomeric roof coatings. 

 
November 12, 2014 Dow 

Dow Announces Sale of ANGUS Chemical Company
   Latest in a Series of Actions to Shed up to $6 Billion of Non-Strategic Assets and Businesses

The Dow Chemical Company announced today that it has signed a definitive agreement under which ANGUS Chemical Company will be sold to Golden Gate Capital for $1.215 billion. The transaction is expected to close during the first quarter of 2015, subject to completion of customary regulatory filings.

Dow had previously announced its intent to divest this business on Oct. 2, 2014. The divestiture aligns to Dow’s efforts to achieve its identified target of $4.5 billion to $6 billion in proceeds from shedding non-strategic assets and businesses by year-end 2015. To date, Dow has achieved $2.5 billion in proceeds designed to remunerate shareholders, reduce debt, and fund growth.

“With today’s announcement, Dow continues to demonstrate its rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “We remain committed to streamlining our portfolio aligned to our market-driven, integrated strategy and will continue to pursue additional portfolio actions in our relentless pursuit of rewarding shareholders.”

The divestiture of ANGUS includes the business headquarters and R&D facility in Buffalo Grove, IL; manufacturing facilities located in Sterlington, LA, and Ibbenbueren, Germany; a packaging facility in Niagara Falls, NY; as well as the associated business, inventory, customer contracts, process technology, business know-how and certain intellectual property.

ANGUS is the world's only chemical company dedicated to the manufacture and distribution of nitroalkanes and their derivatives, which are extremely versatile additives and intermediates that help customers to enhance their products’ performance. Industries successfully using ANGUS’ products include paints and coatings, life sciences and biopharma, metalworking, personal care, pharmaceuticals, water treatment, oil & gas and many others.

Approximately 290 employee positions globally are expected to transition employment status as ANGUS moves to being owned by Golden Gate Capital as part of the transaction. Under terms of the purchase agreement, ANGUS will continue to honor customer, licensing and supplier contracts and related agreements.

Dow is committed to working with Golden Gate Capital for a seamless transition of this business for all stakeholders.


December 05, 2014　                         2014/10/6  Dow Chemical、非戦略事業の売却を進める　

Dow Further Advances Portfolio Management Drive, Announces Additional Divestments
           Continuing to Selectively Shift Portfolio Towards Targeted Growth Markets

The Dow Chemical Company announced today that it has signed definitive agreements to sell its global Sodium Borohydride 水素化ホウ素ナトリウム business to Vertellus Specialty Materials LLC (Vertellus) and its polyolefin films plant in Findlay, Ohio to Valfilm North America, Inc. (Valfilm), a wholly-owned subsidiary of VALGROUP Packaging Solutions. Both transactions are expected to close in the first quarter of 2015 pending regulatory approvals. Combined proceeds from the transactions total approximately $225 million.

Dow had previously announced its intent to divest its Sodium Borohydride business on Oct. 2, 2014, as part of the Company’s ongoing focus to maximize value across its integrated portfolio by reducing exposure to non-strategic businesses and assets. Both transactions are part of Dow’s ongoing drive to deliver $7 billion to 8.5 billion in gross proceeds by mid-2016.

“We continue to demonstrate our market-driven focus by selectively shifting our portfolio away from businesses that – while valuable – are no longer a strategic fit,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “By narrowing our market participation and preferentially funding those businesses in which we have strong competitive positions in attractive markets, we continue to increase value that can be redirected for more strategic uses, such as funding targeted growth, reducing debt and rewarding shareholders.”

The divestiture of Sodium Borohydride includes a manufacturing facility located in Elma, Washington, the associated business, inventory, customer contracts and lists, process technology, business know-how and certain intellectual property. Approximately 75 employees globally are expected to transition employment status to Vertellus as part of the transaction. Under the terms of the purchase agreement, Vertellus will honor customer and supplier contracts and related agreements.

The sale of the Findlay plant includes assets and technology that produce a wide-variety of polyolefin films. In September 2014, Dow decided to close the facility at the end of January 2015, impacting approximately 70 employees. Valfilm intends to restart the facility in February 2015. The transaction is dependent on the final approval for all incentives by the State of Ohio.


January 08, 2015

LG Electronics Partners with Dow to Commercialize LGs New Ultra HD TV with Quantum Dot Technology

 
The Dow Chemical Company is pleased to announce it is partnering with LG Electronics to provide cadmium-free quantum dot technology for LGs new Ultra HD TV with quantum dots unveiled Tuesday at the 2015 Consumer Electronics Show. Dow’s quantum dot technology, licensed from Nanoco Group plc, enables brilliant color in displays and, equally important, allows LG to plan their quantum dot requirements with the confidence of reliable, consistent supply from Dow.

In-kyu Lee, senior vice president and head of the TV and monitor division at LG Electronics Home Entertainment Company, said, “Through our partnership with Dow, we can go forward knowing we have the strength of Dow’s large-scale cadmium-free quantum dot manufacturing facility and the expertise of Dow beside us.” He added, “Dow’s quantum dot technology takes LGs latest LCD TVs to a new level of picture quality, and further establishes LG as a leading provider of the most diverse and innovative TV display technologies in the industry.”

“We look forward to our continued collaboration with LG as they bring their new quantum dot TV to the consumer marketplace,” said Dominic Yang, president of Dow’s Electronic Materials’ business. “Aligned to our market-driven strategy, this collaboration is a strong example of Dow continuing to meet the needs of the market and consumer demands. It is indeed a pleasure to support our customers in the development of extraordinary display applications.”

On January 23, 2013, Dow Electronic Materials and Nanoco entered into a global licensing agreement for Nanoco’s cadmium-free quantum dot technology. Under the terms of the agreement, Dow Electronic Materials has exclusive worldwide rights for the sale, marketing and manufacture of Nanoco’s cadmium-free quantum dots for use in electronic displays. The manufacturing process will utilize Nanoco’s patented, molecular-seeding technology, which enables high-volume manufacturing.

“Nanoco’s quantum dot technology has been years in the making, and going cadmium-free was the right choice from day one,” said Michael Edelman, Nanoco’s chief executive officer. “Dow is the right partner for us and for the industry’s display makers, and we are proud to know that LG will bring our technology to market in its new Ultra HD TVs.”
 

January 30, 2015 　

Dow AgroSciences Concludes Coodetec Acquisition

Dow AgroSciences, a wholly owned subsidiary of The Dow Chemical Company, has completed the acquisition of Coodetec’s seed business. This acquisition marks the second largest by Dow AgroSciences and is in line with Dow’s plans to expand participation in attractive, high-value growth markets, a key component of the Company’s strategy. The acquisition also expands the Company’s corn and soybean genetics, and strengthens the Company’s breeding and production capabilities in the Americas.

Coodetec＝ブラジルの農業協同組合研究センター（Central Cooperative Agricultural Research）

Dow AgroSciences continues to be one of the largest and fastest growing soybean seed companies in the world. The acquisition further enables growth for Dow AgroSciences in Brazil with strategic corn and soybean traits technology, including POWERCORE™ and new technologies under development such as Conkesta™, and the Enlist™ Weed Control System.

“With this transaction, Dow AgroSciences accelerates its entry into the soybean market in Brazil, a strategic focus of the Company's growth. The objective is to increase market share in soybean seeds in the short term. Furthermore, it strengthens the Company's position in the corn market and marks the entry into wheat seeds in the country,” said Rolando Meninato, Vice President, Seeds Business, Dow AgroSciences.

The conclusion of the Coodetec acquisition also represents a significant addition to Dow AgroSciences’ soybean capabilities across the Americas, enhancing the Company’s genetics portfolio, operations breeding, and ramp-up of new technologies.

“This acquisition will benefit U.S. farmers by enabling Dow AgroSciences’ seed brands to offer growers even more high performing corn and soybean germplasm with the characteristics growers are looking for,” said Brian Barker, General Manager, U.S. Seeds, Dow AgroSciences.

It is expected that the current operational structure of Coodetec will be maintained. A team is being led by Vitor Cunha, former Regional Sales Director for Dow AgroSciences, who is now overseeing the operation as General Manager. Ivo Carraro will remain Coodetec’s Administrative Director.

ーーーーーーーーーーーーーー

July 2, 2014

Dow AgroSciences Signs Agreement to Purchase Coodetec

Dow AgroSciences LLC, a wholly owned subsidiary of The Dow Chemical Company, has signed a binding agreement to purchase Coodetec's seeds business. The transaction is subject to certain closing conditions, including the approval by Brazilian Antitrust Authority (CADE). The completion of the transaction is estimated for the fourth quarter of 2014.

Brazil is one of Dow AgroSciences' priority markets and the Seeds business is of increasing importance for the company in the country. With the signing of the agreement, Dow AgroSciences confirms the company's overall strategy in Brazil to advance the development of its soybean program, strengthen the company’s position in the corn market, and enter the market for wheat seeds.


March 13, 2015  Dow 

Dow to Become One of the Largest Industrial Buyers of Renewable Energy

 
       Dow Accelerates Sustainability with New Wind Farm Agreement for Texas Facility

As a part of Dow’s Energy Plan and its Sustainability Goals, The Dow Chemical Company has taken another step towards reducing its own carbon “footprint.” Marking milestone progress, Dow’s Energy business has signed a long-term agreement with a new wind farm, currently under development in South Texas by a subsidiary of Bordas Wind Energy, LLC, a joint venture between MAP® and Enerverse, LLC. The wind farm, to be complete in first quarter 2016, will span nearly 35,000 acres, and will supply Dow’s Freeport Texas Manufacturing facility with 200 MW of wind power annually, equivalent to the amount of electricity needed to power more than 55,000 homes. As a direct result, Dow is the first company in the U.S. to power a manufacturing site with renewable energy at this scale, and will become the third largest corporate purchaser of wind energy in the United States. As one of the largest industrial energy consumers in the world, Dow has consistently been on the forefront of new energy technology improvements. Dow is on track to meet its 2025 renewable energy goal as part of its Sustainability Goal commitments.

“Dow is always looking for win-win solutions – good for the environment and good for business,” said Jim Fitterling, vice chairman of business operations at Dow. “By entering into this agreement, Dow is taking a serious approach to our future energy needs in Texas and cost-competitive wind energy is a great opportunity.”

“Adding large scale renewable energy to Dow's manufacturing process is just one smart move that we can make to secure a future of sustainability, growth, and long-term competitive advantage,” said Seth Roberts, global business director of the Energy and Climate Change portfolio at Dow. “This decision also serves as a systemic hedge against both energy and power price volatility, while improving our overall carbon footprint.”

This new wind deal results from Dow’s long-term COAT vision and strategy as outlined in the Dow Energy Plan, a four pillared, global approach to Energy and Sustainability:

  • Conserve by aggressively pursuing energy efficiency and conservation.
  • Optimize, increase and diversify domestic hydrocarbon resources.
  • Accelerate the development of cost effective clean energy alternatives.
  • Transition to a Sustainable Energy Future.

As a business and sustainability leader, Dow recognizes that today’s unprecedented challenges also represent a tremendous opportunity for those who dare to envision a different future. Under Dow’s Sustainability Goals, Dow commits to continuing to reduce our own footprint, including securing 400 MW of clean power by 2025.

March 27, 2015

Dow and Olin Corporation Create an Industry Leader in Chlor-Alkali and Derivatives with Revenues Approaching $7 Billion

Transaction is Highly Accretive to Dow, with a Tax Efficient Consideration of $5 Billion

  • Dow to separate a significant portion of its chlor-alkali and downstream derivatives businesses and merge them with Olin in a tax-efficient Reverse Morris Trust transaction that creates an industry leader with revenues approaching $7 billion; Dow shareholder value will be further enhanced through the ownership of shares in the combined company.
  • Transaction is highly complementary to the strategic objectives of both companies, with substantial synergies and significant potential to enhance value for both sets of shareholders.
  • Represents highly synergistic transaction with significant growth opportunities; Olin expects to achieve annualized cost synergies of a minimum of $200 million, which are anticipated to be fully realized within 36 months.
  • Transaction is highly accretive to Dow and Dow shareholders, with a tax efficient consideration of $5 billion, and a taxable equivalent value of $8 billion.
  • Transaction is a significant achievement in executing Dow’s strategic transformation to a focused provider of high value, differentiated products based on key integrated and innovative value chains, such as Dow’s advantaged ethylene and propylene derivatives.
  • The strategic relationship between Dow and Olin resulting from this transaction will enable Dow to continue to benefit from its integration efficiencies in chlorine for key downstream applications; Olin will expand its downstream portfolio of chlorinated products and benefit from the opportunity provided by low-cost ECU production on the U.S. Gulf Coast.
  • Olin will become a leading, low-cost global player in chlor-alkali and derivatives while enhancing its existing presence in key geographies; Olin will more than double its scale and drive incremental growth as a result of the combined companies’ product and process technologies, networks, logistics, creating substantial customer value.

The Dow Chemical Company and Olin Corporation announced today that the boards of directors of both companies unanimously approved a definitive agreement under which Dow will separate a significant portion of its chlorine value chain and merge that new entity with Olin in a transaction that will create an industry leader with revenues approaching $7 billion. The transaction has a tax efficient consideration of $5 billion, and a taxable equivalent value of $8 billion to Dow and Dow shareholders. It is highly complementary to the strategic objectives of both companies, with significant potential to enhance value for both Dow and Olin shareholders, and create substantial benefits for customers.

The terms of the agreement call for Dow to separate its U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses, and then merge these businesses with Olin in a Reverse Morris Trust transaction. The merger will result in Dow shareholders receiving approximately 50.5 percent of the shares of Olin, with existing Olin shareholders owning approximately 49.5 percent.

The transaction is valued at $5 billion, and includes $2.0 billion of cash and cash equivalents to be paid to Dow; an estimated $2.2 billion in Olin common stock using the Olin stock value as of close on March 25, 2015; and approximately $800 million of assumption of pension and other liabilities. In addition, by virtue of the joint share ownership, both sets of shareholders will benefit from a minimum of $200 million in projected annual synergies and cost savings.

Following the completion of the transaction, Olin will be an  – benefiting from the combination of complementary businesses, significant scale, integration, cost-advantaged feedstocks, and a broad and diverse end-uses portfolio. Expected cost synergies of the transaction include network optimization which will facilitate output expansion, significant logistics savings and benefits, and the potential for expansion of existing products produced by Olin and Dow into additional geographies and to additional customers. Annual revenues of the combined business are anticipated to be approximately $7 billion and EBITDA is expected to be $1 billion on a 2014 pro forma basis, excluding synergies. The transaction is subject to a vote by Olin shareholders and is expected to close by year-end 2015.

In a separate, arms-length transaction, Dow and Olin agreed to a 20-year long-term capacity rights agreement for the supply of ethylene by Dow to Olin, in which Dow will receive up-front payments and, in return, Olin will receive ethylene at co-investor, integrated producer economics. The agreement is additive to the financials outlined above for the chlorine value chain transaction. The combined company will utilize an integrated supply of ethylene from Dow’s production grid on the U.S. Gulf Coast to be a sustainable, integrated chlor-vinyl producer. It will create scale benefits to Dow, and Olin will contribute significant capital for these rights. Together, both Dow and Olin will benefit from long-term, sustainable physical integration, which is key to the ongoing sustainable growth of both companies.

“By combining Dow’s world-class assets and people with Olin, we are creating a premier company with the scope and capabilities to optimally leverage long-term growth opportunities in the marketplace and generate significant shareholder value,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “We have jointly created a solid foundation for success for Olin, driven by the benefits of greater scale, an enhanced ability to capitalize on globally advantaged cost positions backed by U.S. shale gas economics, technology advantages, broader market access and significant envelope integration.”

Liveris added, “This milestone is a powerful shift in our portfolio towards targeted, integrated high performance sectors and end-markets that will drive further margin expansion, earnings growth, and return on capital – with a deal structure designed to maximize total shareholder return. With this transaction we will exceed our target to divest $7 billion to $8.5 billion of non-strategic businesses and assets. This achievement will allow us to have an ongoing focus to continue to enhance shareholder remuneration, reduce debt and continue to invest in future growth in our high priority and high margin businesses.”

“This transaction is a natural fit to our strategic objectives - creating a sustainable, long-term growth platform and enhanced shareholder and customer value,” said Joseph D. Rupp, Olin’s chairman and chief executive officer. “Supported by significant integration and scale, premier low-cost assets, an upgraded and diversified product mix, and valuable network and other synergies, we will be able to better serve and grow with our customers. We are excited to combine the strengths of our businesses and capitalize on the significant opportunities inherent in this transaction.”

Dow and Olin will have a strong, ongoing operational and commercial relationship including several long-term supply, service and purchase agreements which will support downstream products aligned with Dow’s strategic market focus. Dow will be an important anchor customer of Olin as it works to grow the acquired business. Olin will have a strong capital structure and cash flow to support growth and return of capital to shareholders. It will employ approximately 6,000 employees at 29 operating sites in 9 countries.

Olin will continue to be led by Rupp and a senior management team comprised of both Dow and Olin current employees. Olin’s Board of Directors will consist of the existing nine Olin Company directors and three new members to be designated by Dow.

The transaction is subject to approval by Olin shareholders and completion of customary closing conditions, including relevant tax authority rulings and regulatory approvals.

April 30, 2015　

Dow Advances Portfolio Management Drive with Divestment of AgroFresh

The Dow Chemical Company announced today that it has signed a definitive agreement under which AgroFresh, its post-harvest specialty chemical business, will be acquired by Boulevard Acquisition Corp., a public investment vehicle, formed by Avenue Capital Group, for $860 million, or 9.2x EBITDA multiple based on 2014 earnings.

2014年10月2日の売却計画の進行状況発表時に、3事業の売却を進めているとしていたが、今回、この一つの子会社Angus Chemical Companyを12.15億ドルでGolden Gate Capital に売却すると発表した。

残り2件は、水素化ほう素ナトリウム事業（Vertellus Specialty Materials LLC に売却すると発表）と、Dow AgroSciences部門に属する子会社のAgroFresh。

AgroFreshはDow AgroSciences部門に属する子会社で、果実の成熟を抑えたり、カットした果物の傷みを抑えるのに用いられる 1-MCP (1-Methylcyclopropene) などを扱う。

The transaction has been unanimously approved by the boards of directors of both companies, and is expected to close in the third quarter of 2015, subject to approval by Boulevard’s shareholders and other closing conditions, including regulatory filings and local employment law and governance obligations in Europe. An affiliate of Avenue has provided incremental capital commitments and Boulevard expects to take certain steps to help ensure both the successful closing and the future growth of AgroFresh.

“In line with recently announced portfolio moves, this transaction demonstrates Dow’s focus on selectively shifting our portfolio away from businesses that are no longer a strategic fit, allowing Dow to release cash and focus on advancing our strategic growth agenda and remunerating shareholders,” said Howard Ungerleider, Dow’s chief financial officer. “AgroFresh is focused on the post-harvest market segment, which is not aligned to the rest of the Dow AgroSciences’ portfolio. The retention of a minority interest in AgroFresh, however, allows Dow to participate in the growth prospects of the business while unlocking a majority share of value for our shareholders.”

Upon closing, AgroFresh will become a subsidiary of Boulevard, a stand-alone public company in which Dow will retain a non-consolidated minority ownership position. It will be positioned to grow both through its existing innovative processes and through future investments and acquisitions.  Thomas Macphee, vice president and corporate director for Dow, who had formerly been responsible for AgroFresh in the Company’s early development, has been named Chief Executive Officer of AgroFresh, pending official closure of the transaction.

AgroFresh is a global industry leader in advanced proprietary technologies for the horticultural and agronomic markets. It offers an innovative portfolio of products and services that enhance the freshness, quality and value of fresh produce. Its flagship product is the SmartFresh℠ Quality System, a freshness protection technology proven to maintain firmness, texture and appearance of fruits during storage and transport. SmartFresh is currently commercialized in 45 countries worldwide.

Dow had previously announced its intent to divest AgroFresh on Oct. 2, 2014. The signing of this transaction represents yet another milestone against the Company’s stated target of $7 billion to $8.5 billion in proceeds from divestitures by mid-2016. Since 2013, the Company has signed or completed transactions that are expected to exceed $12 billion in pre-tax proceeds.

Dow is committed to working with Boulevard to ensure a seamless transition of this business for all stakeholders.

April 6, 2016

Dow Announces Settlement in Urethanes Opt-Out Case Litigation

The Dow Chemical Company has entered into a settlement agreement to resolve the Urethanes Opt-Out case litigation. In this settlement, Dow has agreed to pay the opt-out plaintiffs $400 million, which is estimated to result in net cash payments totaling approximately $250 million. The Opt-Out litigation represents claims from purchasers who elected not to be class members in the previously settled Urethanes Class Action matter.

Dow Chemical は2016年2月26日、2005年に米国の需要家が集団訴訟を行ったポリウレタン独禁法事件について、835百万ドルの支払で和解したと発表した。

　　2016/2/29　Dow Chemical、ポリウレタン独禁法違反の集団訴訟で和解　

Based on the risk assessment and potential outcomes, Dow believes this settlement is the right decision for the company and its shareholders.

Although Dow is settling this case, it maintains its position consistent with the position in the class action that the Company never agreed with its competitors to fix polyurethane prices at any time. In fact, Dow cooperated with an extensive investigation by the U.S. Department of Justice, which closed its investigation in 2007 without taking any or proposing any action against Dow. The Company and its employees are and have always been committed to ethical, lawful conduct and business practices world-wide.

米国のクラスアクションは、一個人が、同じような立場にある多数の人々(クラス構成員)を代表して訴訟提起し、集団的な請求を行うことを可能とする制度である。
その大きな特徴は、オプトアウト方式と呼ばれる仕組みであり、クラス構成員の定義に該当する者は、自ら参加する意思表明を行わなくとも、その訴訟から離脱(オプトアウト)する意思を積極的に表明しない限り、当然にクラス構成員に取り込まれる(なお、厳密には離脱が許されない類型のクラスアクションもある)。

 August 29, 2016  Dow　

Dow Announces Start-up of Sadara Mixed Feed Cracker

The Dow Chemical Company today announced that its joint venture in the Middle East – Sadara Chemical Company (Sadara) – has achieved a significant milestone, starting up its mixed feed cracker (MFC).    エタン＋ナフサ

2011/7/26 　DowとSaudi Aramco、石油化学JV設立を最終決定

“Sadara is a fundamental cornerstone in Dow’s strategic actions to deliver consistent, long-term earnings growth for our shareholders and enhanced value and market access for our customers,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “The startup of the mixed feed cracker is a pivotal next step in realizing the full value creation of this world-scale integrated complex, which builds upon the unique strengths of its parent companies to deliver a portfolio of differentiated, high-value plastics and specialty chemical products throughout emerging economies.”

Sadara supports Dow’s strategy to enable cost-advantaged growth in key regions such as Asia Pacific, the Middle East, Africa, India, and Eastern and Central Europe in key markets such as packaging, construction, electronics and transportation. The MFC is one of 26 manufacturing assets being built at the complex in Jubail Industrial City II, the largest of its kind ever built in a single phase. Ethylene and propylene produced by the MFC will be subsequently converted to a wide range of value-added plastics and specialty chemicals through Sadara’s other manufacturing units.

The complex has already commissioned two polyethylene trains, qualifying 25 products to date and shipping PE to nearly 100 customers in more than 25 countries. Sadara remains on schedule for a sequenced start-up process, continuing with the polyethylene and polyolefins envelope to maximize timing in the ethylene cycle, followed by ethylene oxide/propylene oxide and their derivatives. The more than 3 million metric tons of performance-focused products will add new value chains to the Kingdom’s vast petroleum reserves, resulting in the diversification of the economy and region.

 

October 24, 2016　

Trinseo Announces Capacity Expansion for Solution-Styrene Butadiene Rubber

Dowは2010年3月2日、Styron DivisionをBain Capital Partnersに16.3億ドルで売却する契約を締結したと発表した。ポリカーボネートや合成ゴムも含まれる。

同社は2007年にChevron PhillipsとのSM/PSの50/50JV、Americas Styrenicsを設立し、米国と南米のPS工場を拠出したが、この持分も売却対象に含まれる。

2010/6/18　ダウ、スチレン系事業売却完了

Styronは2011年末に社名を Trinseo に変更した。

TrinseoはIntrinsic(「固有の」、「本質的な」、「内在する」）から取った。
同社の製品や技術が、需要家の製品にintrinsic な役割を果たし、需要家の成功に不可欠なものになるという意味。

なお、PSの商標は従来通り Styron を使用する。

 

Trinseo, a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, today announced that it will expand capacity for Solution-Styrene Butadiene Rubber (S-SBR). This increased investment is a direct response to rising customer demand for this critical technology, which is a key component in increasing energy efficiency, safety and durability in performance tires.

The asset upgrade at Trinseo’s world-class synthetic rubber manufacturing complex in Schkopau, Germany, will add 50 KT of S-SBR capacity, increasing the company’s global S-SBR production by 33%. This additional capacity is expected to be online in January 2018.

 

November 30, 2016  Dow 

Royal Inauguration Celebrates Success of Sadara Chemical Company

Sadara Chemical Company, a joint venture between The Dow Chemical Company and Saudi Arabian Oil Company (Saudi Aramco), was inaugurated by His Majesty, King Salman bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, representing the strategic significance of Sadara to the country’s growth and economic diversification strategy Saudi Vision 2030.

Andrew Liveris, Dow’s chairman and chief executive officer, was invited to deliver remarks at the event which was also attended by His Royal Highness, the Deputy Crown Prince of Saudi Arabia, Mohammad bin Salman Al Saud, Second Deputy Premier and Minister of Defense; His Excellency Khalid A. Al-Falih, Saudi Arabia’s Minister of Energy, Industry and Mineral Resources and Chairman of Saudi Aramco; Amin H. Nasser, Chief Executive Officer of Saudi Aramco; and other distinguished guests including Sadara’s Board of Directors and leadership members.

Speaking of the young, eager and talented Saudi workforce, Liveris said: “And this, more than anything, speaks to the present impact – and the future promise – of all that Sadara represents. Because even this historic inauguration is just the beginning… the foundation for a bold vision – of a vibrant society, a thriving economy, and an ambitious nation at the intersections of three continents. It is a vision that we all share, and one that we all must help fulfill in the decades to come.”

Comprising 26 manufacturing units, Sadara is one of the world’s largest integrated chemical facilities and the largest ever built in a single phase. The complex possesses flexible cracking capabilities and will produce more than 3 million metric tons of high-value performance plastics and specialty chemical products, capitalizing on rapidly growing markets such as transportation, infrastructure, packaging and consumer products. The performance-focused products will add new value chains to the Kingdom’s vast petroleum reserves, resulting in the diversification of the economy and region.

Sadara will employ thousands of talented Saudis and foreign nationals, and will help diversify the economy by adding value to the Kingdom’s vast petroleum reserves and making chemical products not produced before in the Middle East. Dow has estimated that the project will create 14,000 new jobs in Saudi Arabia, ~4,000 of which are from direct employment and the rest indirectly.
The complex has started its Mixed Feed Cracker and commissioned three polyethylene trains, qualifying 25 products to date and shipping polyethylene to nearly 100 customers in more than 25 countries. Sadara remains on schedule for a sequenced start-up process, continuing with the polyethylene and polyolefins envelope, the propylene oxide/isocyanates/polyurethanes envelope, and finally the ethylene oxide/propylene oxide/specialty chemicals units.

Dow has been investing in Saudi Arabia for more than 40 years, is the largest foreign investor and currently has more than 500 employees in the country.
During a recent visit to the Kingdom of Saudi Arabia, Liveris met with H.R.H. Deputy Crown Prince Salman Al Saud, to discuss Dow’s existing investments in the Kingdom and potential future opportunities aligned to the Company’s growth strategy and Saudi Arabia’s Vision 2030.

In June, Dow became the first company to receive a trading license from the Government of Saudi Arabia, allowing 100 percent ownership in the country’s trading sector. In addition to Sadara, Dow maintains several joint ventures in the region including a joint venture with Juffali & Brothers, and Saudi Acrylic Monomer Company (SAMCo).

Arabian Chemical Company Polyurethane Systems House

Arabian Chemical Polyurethane (PU) Systems House, a business alliance between Juffali & Brothers and the Dow Formulated Systems business, was inaugurated in March 2012.

Saudi Acrylic Monomer Company (SAMCo)

A joint venture with the Tasnee Sahara Olefins Company (TSOC), SAMCo is the first acrylic monomer production facility in the Middle East. Completed in 2013, the asset manufactures downstream products for local and regional markets.

立地：Jubail
出資：Rohm & Haas→Dow  25%、Saudi Acrylic Acid Company 75% (Tasnee と Sahara Olefins のJV）
製品：acrylic acid 　250千トン and related esters
startup：2011
原料プロピレン：Saudi Ethylene and Polyethylene

Arabian Chemical Company (Latex) Ltd. (ACCL)

ACCL, based in Dammam, is one of three joint ventures with E.A. Juffali & Brothers. The partnership manufactures and sells latex specifically designed for the coatings industry.

Arabian Chemical Company (Polystyrene) Ltd. (ACCPS)

ACCPS, a Jeddah-based joint venture with E.A. Juffali & Brothers, manufactures and sells Dow STYROFOAM™ brand insulation.

 

Additional strategic investments include agreements with King Abdullah University of Science and Technology (KAUST) to construct a new Dow Middle East Research and Development Center, and a Reverse Osmosis manufacturing facility – the first unit of its kind outside of the United States.

 

May 20, 2017 　

Dow Signs Agreements for Coatings and Silicones Investments in Saudi Arabia

Investments Advance Dow’s Innovation Agenda; Demonstrate Continued Commitment to the Region

The Dow Chemical Company today signed two agreements to advance the Company’s strategic, innovation agenda in the Kingdom of Saudi Arabia (KSA) which will bring leading edge technologies to KSA that support the Kingdom’s Vision 2030 economic diversification and advanced manufacturing development plan.

Dow signed an agreement to construct a state-of-the-art manufacturing facility to produce a range of polymers for coatings and water-treatment applications, and a memorandum of understanding for a feasibility study related to a proposed investment in the Company’s Performance Silicones franchise.

Andrew Liveris, Dow’s chairman and chief executive officer, signed the agreements at an event in Riyadh, Saudi Arabia, attended by U.S. President Donald J. Trump, His Majesty, King Salman Bin Abdulaziz Al-Saud, Custodian of the Two Holy Mosques, His Royal Highness, the Deputy Crown Prince of Saudi Arabia, Mohammad bin Salman bin Abdulaziz Al-Saud, and other distinguished guests.

“Dow has been a long-term strategic partner in Saudi Arabia for nearly four decades and is the largest foreign investor in the country,” said Liveris. “Through our global and regional experience and expertise, we have unmatched capabilities to deliver high value, innovative solutions that support the Kingdom in key growth areas that help advance the Saudi’s Vision 2030 plan designed to create a vibrant society and a thriving diversified economy.”

Located in the PlasChem Park in Jubail, the coatings facility will service the needs of the Saudi Arabian market with an innovative range of acrylic-based polymers for industrial and architectural coatings and water-treatment and detergent applications.

The investment will create approximately 1,000 jobs during peak construction and approximately 100 high-skilled, full-time operations jobs in the Kingdom, ultimately growing local manufacturing and sustainable economic growth.

The new coatings facility will complement Dow’s existing coatings capabilities in the Middle East, which include an existing facility at Jebel Ali, in Dubai, United Arab Emirates.

The proposed silicones investment will include constructing a fully integrated, world-scale siloxanes and high performance silicones complex geared towards markets and industries such as home and personal care, automotive, high performance building and construction, solar energy, medical devices, and oil and gas. When complete the complex will support the economic impact of KSA through the creation of approximately 350 full-time, technology-skilled jobs.

This move will serve to further integrate the former Dow Corning silicones business into Dow, and will accelerate the development of new hybrid materials which will be unique, technology rich solutions for regional-specific needs. For example, the Middle East is home to many of the world’s largest and tallest buildings, which utilize high performance glass bonding technologies from Dow Silicones. Dow was recently awarded the contract for supply of silicones sealants for the structural glazing façade of the Jeddah Tower in KSA. Construction of the façade will start later this year. Upon completion, the Jeddah Tower will be the tallest building in the world and will utilize state-of-the-art silicones technology from Dow to realize its futuristic architectural design.

These investments are another example of Dow’s long-term strategy in the Kingdom and region.

Dow maintains several joint ventures in the region including Sadara Chemical Company, a joint venture with Saudi Arabian Oil Company (Saudi Aramco). Comprising 26 manufacturing units, Sadara is one of the world’s largest integrated chemical facilities and the largest ever built in a single phase.

Sadara has completed construction on all of its 26 manufacturing units with 19 units either in operating or start up mode. Five units are fully up and running – marking the commercialization of Sadara’s entire plastics franchise. And all remaining units are on track for a sequenced start-up throughout 2017 to meet rising demand in Asia, Africa, the Middle East, India, and Eastern Europe.

The complex possesses flexible cracking capabilities and will produce more than 3 million metric tons of high-value performance plastics and specialty chemical products, capitalizing on rapidly growing markets such as transportation, infrastructure, packaging and consumer products. The performance-focused products will add new value chains to the Kingdom’s vast petroleum reserves, resulting in the diversification of the economy and region.

Sadara employs more than 4,000 talented Saudis and foreign nationals, and will help diversify the economy by adding value to the Kingdom’s vast petroleum reserves and making chemical products not produced before in the Middle East. Dow has estimated that the project will create 14,000 new jobs in Saudi Arabia, ~4,000 of which are from direct employment and the rest indirectly.

Other joint ventures in the region include a joint venture with Juffali & Brothers, and Saudi Acrylic Monomer Company (SAMCo). Additional strategic investments include agreements with King Abdullah University of Science and Technology (KAUST) to construct a new Dow Middle East Research and Development Center, and a Reverse Osmosis manufacturing facility – the first unit of its kind outside of the United States.

In June, 2016, Dow became the first company to receive a trading license from the Government of Saudi Arabia, allowing 100 percent ownership in the country’s trading sector.

June 20, 2018　

Judge awards Dow Chemical Canada $1.06-billion in damages against Nova Chemicals

A judge has awarded Dow Chemical Canada $1.06 billion in damages against Nova Chemicals Corporation in a dispute over a massive ethylene plant in central Alberta.

The dispute centred around the operation of a production facility in Joffre known as E3.

E3 started operating in 2000 as a joint venture, with Nova running the facility.

Dow Canada alleged breach of contract over the E3 joint venture agreements, claimed that Nova took part of the ethylene and other products that belonged to Dow and failed to run the facility at full production.

Nova said it faced an ethane shortage and ran the facility as full as it could subject to mechanical issues that constrained production.

Justice Barbara Romaine of Alberta Court of Queen’s Bench ruled in favour of Dow and against a counterclaim filed by Nova in a case that included claims and counterclaims for damages between 2001 to 2012.

“Dow has established these facts and has proved on a balance of probabilities that Nova has breached the joint venture agreements both as Operator and as Co-owner and has converted some of the ethane that Dow was entitled to from E3,” Romaine wrote in a lengthy redacted judgment released Wednesday.

“I also grant Dow a declaration that the conduct of Nova as Operator constitutes Wilful Misconduct and Gross Negligence.”

Romaine said Dow established that there was no ethane shortage, that Nova always had enough ethane to fill E3 and had the ability and freedom to acquire additional ethane.

She also said Dow showed that Nova failed to operate E3 to maximize production and that the facility had more capacity than Nova submitted at trial.

The court assessed damages against Nova amount to approximately $1.06 billion USD, but must be converted into Canadian dollars.

Jenn Nanz, a spokeswoman for Nova Chemicals, said the corporation will appeal within 30 days.

“While this decision is extremely disappointing, it has no impact on our announced growth plans,” Nanz said in an e-mail.

“Nova Chemicals is confidently moving forward with: Corunna cracker expansion and AST2 in the Sarnia-Lambton region (and a) joint venture with Total and Borealis in the U.S. Gulf Coast, which closed on May 23.”

Officials at Dow Chemical Canada were not immediately available for comment.

Ethylene is the building block for a range of chemicals from plastics to antifreeze solutions and solvents.