(化学工業日報 2001/2/7)

ダウーＵＣＣ合併　米ＦＴＣが正式承認　 　一部ＰＥ売却など条件 　

米国のダウ・ケミカルとユニオン・カーバイド（ＵＣＣ）の合併計画が米連邦取引委員会（ＦＴＣ）から承認された。同計画は欧州委員会など米国以外の関係当局からはすでに承認されており、発表から１年半を経てようやく実現する。 ２０００年をべ−スにした両社合計の売上高は２８４億ドルで、米デュポンをわずかに上回る。世界の化学業界では９０年代後半から規模拡大などに向けた再編と集約化が加速しており、ダウとＵＣＣの合併実現がさらなる再編を促すのは必至だ。 　
ダウ・ケミカルは９９年８月にＵＣＣとの合併計画を発表。株式交換により実質的にはＵＣＣを買収するもので、ＵＣＣはダウの１００％子会社になる。合併によるコスト合理化効果は、計画発表時に見込んでいた年間５億ドルを上回る見通しで、２年以内に達成できるとみている。ダウのマイケル・パーカー最高経営責任者（ＣＥＯ）は「ＵＣＣとの合併完了は、景気サイクルを通じて１株当たり利益を毎年１０％ずつ伸ばすという成長我略を加速することになる」とコメントしている。 　
両社は類似事業が多いため、合併計画承認に当たって規制当局から条件が付いた。売却が必要なのは�@欧州での一部ポリエチレン（ＰＥ）資産�Aダウの世界でのエチレンアミン事業（オランダのタヌーゼンにある設備は除く）�Bダウの世界でのエタノールアミン事業�Cダウの北米でのガス処理事業となっており、そのほかＰＥの気相法技術の売却およびライセンス、ＵＣＣのＰＥ技術「ユニポール」のライセンス権と従来のＰＥ用触媒事業をユニべーション・テクノロジーズに供与することも求められた。ダウはこれらの実施について当局と合意している。 　
ダウの昨年の業績は売上高が２１９億ドル（９９年比１１６％増）、純利益が１５億ドル（同１４％増）。ＵＣＣは売上高が６５億ドル（同１１％増）、純利益が１億６千万ドル（同４４％減）。ダウは２０１０年までに売上高を６００億ドルに引き上げる目標を掲げており、ＵＣＣとの合併で達成に弾みをつける。 　
合併後のダウのエチレンの年産能力は９００万トン規模になる見通しで、ポリオレフィン能力は昨年１０月に発足した蘭バセル・ポリオレフィンズを上回り世界トップになる。また、ポリオレフィンの主力であるＰＥ能力は８００万トンを超えて、世界２番手のエクソンモービル　ケミカル（約６５０万トン）を大きく引き離すことになる。

エチレンアミン　ハンツマンに売却
米ダウ・ケミカルは、ユニオン・カーバイド（ＵＣＣ）との合併で規制当局から求められた案件のうち、世界のエチレンアミン事業を米ハンツマンに売却することで合意した。またＢＰなどと提携して進めていた、気相法メタロセン触媒の技術開発の権益や、気相法ポリエチレン技術に関連するパテントなどをＢＰに売却することでも合意した。 　
ハンツマンヘのエチレンアミン事業の売却額は明らかにしていないが、今年第１・四半期中の完了を予定している。 　ハンツマンは同事業買収でアミン事業を強化、年産能力は４１万トンに拡大する見通し。 　

石化再編、世界の頂点に　　６００億ドル企業へ戦略加速
　ダウ・ケミカルとユニオン・カーバイド（ＵＣＣ）の合併が正式決定したことで、ダウ・ケミカルは２０１０年の経営目標とする売上高６００億ドル企業へのピッチを上げる。同社では既存事業の拡大で現状の売上高２８４億ドルを３５０億ドルに拡大、さらにＭ＆Ａや新規事業の開発によって２５０億ドルの事業を確立することにしており、今後、アジアなどでのグローバル戦略の強化やＭ＆Ａの展開が注目される。一方、世界の化学工業の地図はまた塗り替えられることになる。すでに新ダウ・ケミカルは９９年度時点で、世界第３位の化学企業となっていたが、昨年実績でわずかながらデュポンを上回っており、一躍トップに躍り出た可能性もある。
　ダウ・ケミカルとＵＣＣの合併はＢＰとアモコの合併に始まる世界的な石油企業の再編成、欧州を中心として９０年以降集中した石油化学事業再編成の頂点の１つに立つものだ。両社の統合効果は大き＜、合併によりエチレン、ポリエチレン（ＰＥ）、ポリスチレン（ＰＳ）などの基礎石油化学製品、塩素、カ性ソーダなど無機化学品、さらにはポリオールなどの事業において世界トップの座を獲得する。
　すでに合併承認を前提として、新会社の事業組織はマイケル・パーカーＣＥＯのもとにダウ・アグロサイエンス、機能化学品、基礎化学品、ハイドロカーボン・エネルギー・酸化エチレン／ＭＥＧ，マーケット・フェイシング事業部、ＰＳおよびエンジニアリングプラスチック、ポリオレフィンズ、熱硬化性樹脂の８事業からなる事業カンパニーを置き、事業担当社長がＣＥＯに直接レポートする体制をとることが決まっている。新入社員からＣＥＯまでの管理層を６層とする、より簡素化された組織体制で今後の経営に臨むことになる。
　ダウ・ケミカルでは今後、景気循環を通じて株主資本利益率平均２０％、１株当たりの利益の年率１０％成長などの経営目標に取り組みつつ、パーカー新ＣＥＯが打ち出した「より強く、そしてより大きな企業」を目指して経営規模の急ピッチな拡大を図る。
　世界の化学工業の再編成は８０年代後半から始まり、９０年代は欧州で凝縮されて具体化した。こうした動きは現在、日本にも及んでおり、三菱化学、三井化学の誕生につながっている。さらに２００３年を目指して住友化学工業と三井化学が合併を発表するなど、世界の動きが日本の化学産業の再編成を加速させている。
　日本では事業売買など、これまでにはなかったドラスチックな動きも表面化しているが、売り上げ規模、利益率、キャッシュフローなどの点で欧米に後れをとっており、グローバル市場の広がりに合わせて、さらに再編成が進むことは必至だ。


世界の主要化学企業の連結売上高　（９９年度ベース）（単位：億円）
１　デュポン（米）　　　　　　　29,340
２　ＢＡＳＦ（独）　　　　　　　27,115
３　ダウ／ＵＣＣ（米）　　　　　27,030
４　バイエル（独）　　　　　　　25,116
５　アトフィナ（仏）　　　　　　19,007
６　住化＋三井化学　　　　　　　18,345
７　エクソンモービル（化学部門）17,376
８　三菱化学　　　　　　　　　　16,699

注　日本企業は２０００年３月期

SCHKOPAU II - SOLUTION ELASTOMER FACILITY, GERMANY 　

　　　　　　　　　　　　　　　　　　　　　　　　http://www.plastics-technology.com/projects/schkopau2/

In May 2000, Dow Chemical Company completed the reconstruction programme of its newest operation in Germany - Buna Sow Leuna Olefinverbund GmbH (BSL).

BSL was created in 1995 when Buna GmbH in Schkopau, Sachsische Olefinwerke in Bohlen and Leuna Polyolefine GmbH merged to form Buna Sow Leuna Olefinverbund GmbH. The same year Dow announced its intention to take an 80% stake in the operation and to manage the reconstruction process of the company. Dow also announced that from June 1, the BSL sites will be known as Dow Central Germany, reflecting Dow's 100% ownership of the operation from that date.

During the reconstruction period, total investment for new plant and renovation of existing facilities in the sites reached $2.5 billion. State-of-the-art facilities, a highly qualified workforce, new production techniques and an efficient infrastructure have resulted in increased competitiveness and the foundation for long-term sustainable development in the Halle/Leipzig region.

In the project, the new solution elastomer facility, the last of 15 new facilities to come on line, became fully operational and eight existing facilities which were fully modernised. One of the most important investment projects of the restructuring effort was the construction of a 430km pipeline between Rostock and Bohlen, which is crucial for the supply of the cracker at the Bohlen site. BSL's strategic importance to Dow is clear, and provides the company with a bridge between the markets of Central and Western Europe.

PROJECT MAKE-UP

Dow's European production capacity for polystyrene was increased by the start up of a new plant at BSL Schkopau in Germany in record time. The new plant boosted Dow's production capacity by adding 130,000 tonnes/year to total production. The plant is the largest capacity single train unit in Europe. Dow production capacity is now 630,000 tonnes/year and the new plant is well positioned to meet demand from Central and Eastern Europe for high performance plastics.

The new facility had a successful start-up, with less than one week between launch and manufacturing. The plant will be used exclusively to produce STYRON polystyrene (PS). At this speed, all grades of product planned for manufacture at the plant were qualified by the end of August 1999. Product shipping to customers was planned as soon as the qualifying process was over.

Dow was understandably pleased with the successful start-up. Given the size of the plant, it is an impressive achievement that prime product was manufactured just days after the reactors were filled. The new plant underwent tests for mechanical reliability in August 1999 to ensure that quality consistency was achievable. The BSL plant becomes the fifth PS production facility owned by Dow in Europe.

The new plant is strategically positioned to meet the demands of the Central and Eastern European markets. BSL, with its three sites in Boehlen, Leuna and Schkopau, Germany, is becoming one of the world's most competitive chemicals and plastics manufacturing complexes. Its integrated infrastructure comprising services, utilities and human resources allows Dow to increase its manufacturing capacity.

A range of STYRON polystyrene products will be produced at the new facility, including general-purpose polystyrene (GPPS) and high-impact polystyrene (HIPS). Key end-use market segments for polystyrene resins are packaging, appliances, electronics, consumer products, information technology and sheet.

Platts 2002/9/16

Dow selects Seadrift, Texas, for new ethylene plant site

Dow Chemical Co reported Monday it has completed its comprehensive site study determining scale, location and timing for constructing a new world-scale US Gulf Coast ethylene plant. Dow began the site study last fall when it announced Union Carbide Corp, a wholly owned subsidiary, plans to permanently shut down its 975-mil lb/yr Seadrift and 1.5-bil lb/yr Texas City, Texas, ethylene plants by 2005. Based on the site study analysis, Carbide's site in Seadrift, Texas, has been selected as the preferred location for a 900,000 mt/yr ethylene plant, which will use ethane and propane as feedstocks, Dow said. The timing for the start-up of this facility will be based on industry conditions, but is expected to be in 2007. Carbide will proceed as planned with the shutdown of the Seadrift and Texas City olefins plants no later than 2005.
Carbide will also "undertake capital projects during 2003 to maintain the existing site integration benefits at both locations," Dow reported. The shutdowns' exact timing is dependent on the successful completion of these projects. The shortfall in ethylene between the shutdowns and the start-up of the replacement capacity "will be bridged through substantial purchase agreements and internally driven efficiencies," Dow said. "Dow's and Carbide's integrated infrastructure, linked to our collective extensive pipeline and storage network in the US Gulf, provides optimal flexibility for securing our US Gulf ethylene needs," said Theo Walthie, business group president Hydrocarbons and Energy, and Ethylene Oxide-Ethylene Glycol. "This allows us to align the timing of a new plant with our needs and favorable industry conditions, while securing cost-competitive and reliable ethylene."

July 08, 2003　Dow

Union Carbide Finalizes Shutdown Date for Seadrift Olefins Plant
Unit to Cease Operation in September

Following a comprehensive review of options based on current market conditions, Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company, has finalized the timing for the permanent shutdown of the Seadrift Olefins plant. The unit will cease operation on September 12, 2003, in line with the overall timeframe that was announced earlier this year. Environment, Health and Safety considerations will remain a top priority during the shutdown and the cleaning of the unit.

In January of this year, Bill Stavropoulos, Chairman of the Board, President and CEO of Dow, announced that Carbide would shut down its Texas City olefins plant by mid-year and its Seadrift olefins plant no later than the end of 2003. The Texas City olefins plant was safely taken out of operation on June 16, 2003. Carbide's decision to cease operations at the Seadrift olefins plant on September 12 is also in step with Dow's previously announced US Gulf Coast Ethylene Review.

Projects have been undertaken to maintain the existing integration benefits at the Seadrift site, so the site can continue to function optimally following the shutdown. Supply to downstream businesses will be covered through internal and affiliate swaps from increased production at other crackers, and through the implementation of purchase agreements already in place.

The shutdown will result in the elimination of some jobs at the Seadrift site, although an exact number has not yet been determined. A detailed workforce reduction and redeployment plan is currently being developed.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $28 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Union Carbide is a wholly owned subsidiary of The Dow Chemical Company. Committed to the principles of Sustainable Development, Dow and its approximately 50,000 employees seek to balance economic, environmental and social responsibilities.

2002/12/13 Dow

Stavropoulos Named Dow President and Chief Executive Officer

The Dow Chemical Company announced today that its board of directors has elected William S. Stavropoulos as president and chief executive officer, succeeding Michael D. Parker. Stavropoulos continues in his role as chairman of the board.

The board reached this decision solely in light of the disappointing financial performance of the company over the last eight quarters, with this year's results expected to show no improvement from last year. No concern of impropriety was reflected in the Board's decision.

The board has called upon the experience and proven leadership of Stavropoulos, 63, who served as president and COO beginning in 1993, and as president and CEO from 1995 to 2000. He has served as a director since 1990 and became chairman of the board of directors in 2000.

Parker, 56, assumed the role of president and CEO in November 2000. His 34 years of service to Dow includes broad business and geographic experience in Europe, Asia, and North America.

---

2002/12/13 Platts

Dow's replacement of Parker surprises some analysts

Dow Chemical's abrupt dismissal of Michael Parker as its President and CEO Friday surprised some in the US financial community. "I was surprised," said Richard O'Reilly, chemicals equity analyst for Standard & Poor's. "This is very unusual for Dow Chemical to do this." Another chemical analyst, Andrew Cash, managing director, major chemicals for UBS Warburg, said, "It's a pleasant surprise." While Cash conceded that many of Parker's "woes were industry-related" and "not his fault," he noted that Dow Chemical is a company where there is a strong culture of responsibility and accountability, and that for the company not to reach its key goal of meeting or exceeding return on capital for two straight years was intolerable.

2001/2/5 Dow

Dow Announces Plans to Sell Portions of Two Amine Businesses to Huntsman, INEOS

The Dow Chemical Company today announced that it has signed agreements to sell selected portions of two amines businesses as part of the process to receive regulatory approval for Dow's merger with Union Carbide.

Dow will sell its global Ethanolamines (EOA) business and North American GAS/SPEC^TM business to INEOS plc of the U.K. Dow also will sell its global Ethyleneamines (EA) business to Huntsman International, LLC, a subsidiary of Huntsman Corporation of Salt Lake City, Utah. Financial terms of the transactions were not disclosed.

The agreement with INEOS includes Dow's ethanolamines (EOA) manufacturing assets in Plaquemine, Louisiana; Dow's global EOA business including Dow's U.S. and Canadian GAS/SPEC customer base, the associated technology, trade names and access to one-hundred percent of the MDEA capacity of Dow's Freeport plant which Dow will continue to own and operate. INEOS will operate Dow's polyglycols and glycol ethers facilities in Plaquemine as a contract manufacturer; Dow will continue to own the polyglycols and glycol ethers assets, but most of the units' employees will become INEOS employees. Approximately 53 Dow employees will be offered jobs as INEOS employees when the transaction closes, including most employees in the Plaquemine plant and key technical and commercial employees.

The agreement with Huntsman includes Dow's global EA business; and Dow's EA manufacturing assets in Freeport, Texas; and up to fifty-percent of the Terneuzen EA asset capacity rights. Most employees in the EA facility in Freeport will become Huntsman employees; most employees in Terneuzen are not affected. The transaction also includes Dow's alkylethyleneamines (AEEA) assets; however, Dow employees in that unit are unaffected. Approximately 25 Dow employees will be offered jobs as Huntsman employees, including most Freeport EA operations employees and EA commercial employees. The transaction also includes Dow's CASTMATER ceramic processing additive business.

Dow will continue to have a major presence in the EOA and EA businesses after the divestments, when Union Carbide's EOA and EA businesses become part of Dow (pending regulatory approval). At that time, these two businesses, along with oxygenated solvents business, will form Dow's new Oxide Derivatives global business unit.

"When these divestments and the Union Carbide merger are completed, Dow will have a world-class portfolio of oxide derivatives technology with a true global business reach," says Andrew Liveris, business group president for Performance Chemicals.

The divestments to Huntsman and INEOS are expected to be completed around the time of close for the Union Carbide transaction. Until that time, Dow will continue serving its current EA and EOA customers.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $22 billion, Dow serves customers in 162 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 41,000 employees seek to balance economic, environmental and social responsibilities. (This information is prior to the completion of the merger with Union Carbide.)

Huntsman Corporation is the world's largest privately held chemical company. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, footwear, paints and coatings, construction, high tech, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman-held companies today have revenues of approximately $8 billion, more than 14,000 employees and facilities in 43 countries.

INEOS is the U.K.'s second largest chemical company, with a group turnover of USD $3 billion and 6000 employees, operating in 35 facilities worldwide. The company has five divisions focused on: ethylene oxide and ethylene oxide derivatives, methacrylate monomers, Lucite/Perspex PMMA and derivatives, chlor-chemicals, Klea hydro-fluorocarbon refrigerants and Crosfield silicas/zeolites. Within the EO division, INEOS operates Europe's largest single EO/Glycol unit in Antwerp, Belgium where it manufactures, markets, and distributes a range of specialty and intermediate chemicals around the world.

June 26, 2003　http://www.rubberworld.com/

Union Carbide Shuts Down Olefins Plant

Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company, has announced the permanent shutdown of the Texas City Olefins plant. The company also announced the planned shutdown of its Seadrift olefins plant no later than the end of 2003. Environment, Health and Safety considerations will remain a top priority during the shutdown and the cleaning of the unit, reported the company.

2003/5/7 Dow

Dow Announces Successful Start-up of Converted Epoxy Resin Plant in China

The Dow Chemical Company announced today that its 41,000 metric tons per annum converted epoxy resin plant at the Dow Zhangjiagang site in the People's Republic of China has started up on schedule and with the first production within specification. (Zhangjiagang : 張家港)

The plant will produce solid epoxy resin used primarily to produce powder coatings; solid solution epoxy resin for marine and protective liquid paints; and brominated epoxy resin for the production of electrical laminates.

"All these applications have experienced double-digit growth in China," said Phil Cook, business vice president for Epoxy Products and Intermediates (EP&I). "This is due to both the buoyant domestic market and the migration of many applications to China for local use and export to the world. Our epoxy resin plant in Zhangjiagang expands our global presence and demonstrates our commitment to the growing epoxy industry in China and the broader Asia Pacific region."

The new plant will supply resins to Greater China, ASEAN and Australasia. "It joins our epoxy facilities in Kumi, Korea (30,000 metric tons per annum) and Kinu Ura, Japan (40,000 metric tons per annum) to provide a superior network of epoxy resin facilities in the largest global concentration of demand," said Graham Daley, EP&I Commercial Director, Pacific.

Chinese Epoxy Market Expanding
"Epoxy resins are very important raw materials for many high value, downstream industries, including electronics, marine, automotive and appliances," said Daley. "With Dow's efforts over the years to build up strong sales throughout the Asia Pacific region, this new Zhangjiagang facility will quickly approach full capacity utilization. The new Zhangjiagang plant will effectively meet the demand for high quality epoxy products in this region and will generally replace products currently being imported from Dow facilities elsewhere in the world. As product becomes commercially available in the May/June timeframe, the plant's high operating rates will boost efficiency."

Daley said that the electronics industries have been gravitating to China and the pace actually quickened during the global electronic downturn during the past two years. During 2002, personal computer and mobile phone purchases in China were phenomenal. He added that China is by far the largest manufacturer of shipping containers and significant large tonnage vessel construction takes place in Northern China. The appliance industry in China is also very large and automobile production is soaring.

The epoxy resin markets of China are concentrated around Shanghai in Eastern China and Guangzhou in Southern China. The Zhangjiagang site, located along the Yangtze River near Shanghai, is central to these locations and is ideally situated to service both the domestic and export markets. The new facility joins a Dow styrene butadiene latex facility and a joint venture polystyrene resin facility, which began operations in 2002. All three facilities are world-scale and state of the art.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $28 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of Sustainable Development, Dow and its approximately 50,000 employees seek to balance economic, environmental and social responsibilities.

Platts 2003/9/12　　　　　　　　Celanese release

Dow Chemical to acquire Celanese acrylics business

Dow Chemical plans to acquire Celanese's acrylics business, it announced Friday. The acquisition would include intellectual property, inventory and technology for crude acrylic acid, glacial acrylic acid, ethyl acrylate, butyl acrylate, methyl acrylate and 2-ethylhexyl acrylate, as well as acrylics production assets at the Celanese Clear Lake, Texas facility.
Celanese would provide select contract manufacturing services to Dow, and Dow will supply acrylics to Celanese for use in its emulsions production. The transaction remains subject to customary closing conditions, including regulatory approvals.

Sep 12 2003 Celanese AG

Celanese to sell Acrylates Business to Dow
　　　　　　　http://www.celanese.com/mr_news_fullpage?id=18818

Celanese AG and The Dow Chemical Company announced today that they have reached an agreement for Dow to purchase the acrylates business of Celanese.

Dow will acquire Celanese's acrylates business product line, including inventory, intellectual property and technology for crude acrylic acid, glacial acrylic acid, ethyl acrylate, butyl acrylate, methyl acrylate and 2-ethylhexyl acrylate, as well as acrylates production assets at the Celanese Clear Lake, Texas facility.  In related agreements, Celanese will provide certain contract manufacturing services to Dow, and Dow will supply acrylates to Celanese for use in its emulsions production.  The transaction remains subject to customary closing conditions, including regulatory approvals.

David Weidman, Chief Operating Officer of Celanese, commented, "This agreement helps fulfill our strategic commitment to a more focused portfolio and puts Celanese and the acrylates business in a better position to generate value.  At the same time, we secure an economical raw material supply from Dow for our recently acquired Emulsions business in Europe.  Celanese is committed to reliable service for our acrylates customers and to a seamless transition of the business.

According to Andrew Liveris, President of Dow's Performance Chemicals group, "This proposed acquisition positions our current acrylics activities into a complete, integrated acrylic acid chain, establishing Dow as a major presence in higher value, less cyclical, downstream markets.  It sends a strong message to customers that we are committed to providing a secure, long-term source of quality acrylic-based products and a broader offering of acrylic esters.  Additionally, through raw material integration, we gain a more competitive cost position for our UCAR Emulsion Systems business, Superabsorbent Products business, and other Dow specialty products.

Acrylic acid is used to produce acrylic esters and superabsorbent polymers.  Major end uses for acrylic esters include acrylic latex emulsions that are used in surface coatings, paints, textiles, and adhesives.  Superabsorbent polymers are used primarily in disposable diapers and other absorbent personal care products.

化学工業日報 2003年10月22日

米ダウ、スペインでポリオレフィン弾性繊維を自社生産へ

　米ダウ・ケミカルは２０日（米国時間）、スペイン・タラゴナにポリオレフィン系弾性繊維「ダウＸＬＡ」（一般名・ラストール）の量産工場を建設すると発表した。生産能力、投資額は明らかにしていない。同社初の繊維工場となるもので、原料からの垂直統合生産により欧州のほか米国など、グローバルに拡販する。

December 11, 2003 Dow

Dow Global Business Groups Re-aligned,
Liveris Names Three Senior Vice Presidents to Lead Business Portfolios
　　http://www.dow.com/dow_news/corporate/2003/20031211a.htm

Andrew N. Liveris, President and Chief Operating Officer, announced today a new organization with three global business portfolios and the appointment of the senior vice presidents who will lead them.

Our new team will work to further develop the company's strategy, to examine our business mix so that we have the most value-creating businesses going forward, and to gain the maximum efficiency from our company's overall resources, Liveris said. At the same time, we will remain focused on our Action Plan to further improve our ongoing financial results. Our ultimate objective is what it has always been: to maximize long-term shareholder value, he said.

The three global business portfolios - and their leaders who report to Liveris - include the following:

Plastics, headed by Romeo Kreinberg, which includes Polyethylene (PE), Polypropylene (PP), Polyethylene Terephthalate (PET), Polystyrene, Engineering Thermoplastics (ETP), Fabricated Products; Automotive, Wire and Cable; and Rubber and Elastomers.

Chemicals and Intermediates, headed by Michael R. Gambrell, which includes Organic Intermediates, Solvents and Monomers (OISM), Oxide Derivatives, Chlor-Vinyls, Chlorinated Organics, Cal/Mag, Propylene Oxide/Propylene Glycol (PO/PG), and Acrylates.

Performance Chemicals and Thermosets, headed by Phillip H. Cook, which includes Polyurethanes, Polyurethane Systems, Epoxy, Dow Latex (Emulsion Polymers & UCAR Emulsion Systems), Industrial Chemicals, Specialty Polymers (excludes Acrylates), Water Soluble Polymers, Custom and Fine Chemicals, and Licensing.

The three senior vice presidents will be accountable for:
・Their portfolios' profitability and related business measurements;
・Working with Liveris and the Office of the CEO on allocating resources based on the needs of the overall company;
・Operating at the corporate level on strategy and portfolio management.

In related assignments:

Lee P. McMaster will work full-time on a special project assessing Dow's opportunities in China and the Middle East, given the company's growth aspirations in Asia and the need to further develop the company's ability to access globally-competitive sources of raw material for feedstocks and energy. This analysis will guide a geographic growth strategy that reflects the changing industry landscape. McMaster will report to Liveris.

Theo Walthie, Business Group President, will retain his current responsibilities, including Hydrocarbons and Energy, and Ethylene Oxide/Ethylene Glycol (EO/EG). He will report to Liveris.

As previously announced, effective February 1, 2004, Jerome A. Peribere will succeed A. Charles Fischer and serve as President and CEO of Dow AgroSciences, reporting to J. Pedro Reinhard, Dow Executive Vice President and Chief Financial Officer.

The Environmental Operations Business will report to Arnold A. Allemang, Executive Vice President, Operations.

Global functional and geographic leaders will continue their current alignment, focusing on delivering optimal service across all business units at the lowest possible cost.

In making these decisions on organization and leadership, we are mindful of the long-term interests of all of Dow's stakeholders - investors, customers, employees and our communities, Liveris said. That translates to strong financial results, outstanding products, challenging jobs, a safe workplace, sound environmental stewardship and the highest standards of corporate responsibility, he said.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $28 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of Sustainable Development, Dow and its approximately 50,000 employees seek to balance economic, environmental and social responsibilities.

2004/9/6　日本経済新聞夕刊

米ダウ・ケミカル　中東の生産拠点増強　
　３０億ドル投資　石化合弁３社新設

　化学最大手の米ダウ・ケミカルは中東で相次いで合弁事業を立ち上げる。中東を中国と並ぶ重要拠点と位置付け、最大で３０億ドル（約３３００億円）を投じて石油化学コンビナートなどの生産拠点を建設する。
　クウェート石油公社傘下のペトロケミカル・インダストリーズ（ＰＩＣ）と折半出資で合弁２社を設立した。外販用モノエチレングリコール・ジエチレングリコールの製造を手がける「ＭＥグローバル」と、ポリエチレンテレフタレート（ＰＥＴ）製造などを手がける「エクイポリマーズ」で、クウェートで１０億ドルをかけて生産設備を建設する。これらの基礎原料となるエチレン生産能力は８５万トン。２００７年にも生産を始める見通し。(注　実際には両社はクウェート国外の事業）

　オマーンでもオマーン政府、オマーン石油との折半出資で合弁会社を設立する。１５億−２０億ドルを投じて０５年から石化コンビナートを建設し、０８−０９年に稼働を始める予定。石化コンビナートはポリエチレン樹脂製造設備３基、天然ガス分解炉などで構成する。

　ダウは中国でもエチレン生産を強化しているが、中東地域は「アジア市場へ原料供給するための基地」（アンドリュー・リバリス社長）として戦略的に強化する。

November 04, 2004 Dow

Dow to reduce production at VCM Plant in Texas (Oyster Creek) in 2005
http://www.dow.com/dow_news/prodbus/2004/20041104c.htm

The Dow Chemical Company (Dow) announced that it plans to reduce production at its vinyl chloride monomer (VCM) facility and cease production of ethylene dichloride (EDC) at the Unit 1 facility in Oyster Creek, Texas, by the end of 2005. This net reduction accounts for approximately 4% of the North American VCM industry capacity. The remaining chlor-alkali, Oxy EDC, and VCM plants in Unit 5 at Oyster Creek will not be affected by this decision and will continue to operate.

"We remain very committed to ensuring reliability of supply to our current VCM customers," says Philippe Raynaud de Fitte, vice president of Dow's Chlor-Vinyl business. "Long-term operation of this portion of the facility would require significant capital investments which could not be justified against other options within the Dow portfolio. In addition, high and volatile energy and feedstock costs on the U.S. Gulf Coast have increased the cost of operating this facility. This decision maximizes Dow's flexibility for long-term value creation."

Approximately 10-20 positions will be affected by this phase out. Dow will make every effort to redeploy employees within the company where practical.

Dow will honor its current contract VCM commitments to its customers by supplying from its other VCM plants and via commercial agreements. EDC is an intermediate used to produce VCM. VCM is used to produce polyvinylchloride (PVC), a common plastic used in vinyl siding, piping, and many other applications.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

December 20, 2004 Dow

Shenhua and Dow Chemical agree to study Coal-to-Olefins opportunity in China
http://www.dow.com/dow_news/corporate/2004/20041220a.htm

The Shenhua Group and The Dow Chemical Company have signed an agreement to jointly evaluate the feasibility of coal-to-olefins projects in China.

A feasibility study which covers areas such as economics and market analysis, logistics and technological applications will be undertaken to evaluate the potential and value of building large scale coal-to-olefins plants in China.

Areas around Yulin 楡林 city, Shaanxi 陜西province, have been identified as the location for the study which will start in the first quarter of 2005. It is anticipated that the study will be concluded by end of next year.

The agreement was signed by Jim McIlvenny, President of Dow Greater China and Zhang Yuzhuo, Vice President of Shenhua Group in the presence of Chen Deming, governor of Shaanxi. Chen Biting, President of the Shenhua Group and Andrew Liveris, President & CEO of The Dow Chemical Company, also attended the signing ceremony.

About Shenhua Group
Shenhua Group Corporation Limited was established in October 1995 as one of 53 wholly state-owned enterprises under the direct leadership of the State Council of China. By the end of 2003, Shenhua, the largest coal producer in China, had 35 subsidiaries, wholly owned or majority owned, with the assets totaling over RMB100 billion.

Shenhua Group, as an energy-based company, assumes the mission to plan, develop and operate the coal resources in the Shenfu-Dongsheng Coalfield and the affiliated railways, power plants, coal terminal and shipping fleet. It integrates coal mining, railway transportation and sales in an uninterrupted and streamlined process. In 2003, the sales and the profits were over RMB 34 billion and RMB 3 billion respectively.

For the next years to come, Shenhua Group will grow into a large international energy conglomerate based on coal mining, with coal, power and coal liquids as main products.

About Dow
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

　ダウは中国の国有石炭最大手・神華集団との間で、中国で石炭からオレフィンを生産する計画のＦＳを共同で実施する契約を結んだ。大規模なオレフィンプラント建設のための経済性、市場分析、物流、技術等を検討する。
　立地は陜西省楡林市の近辺で、2005年第１四半期に検討を開始し、年末に終える予定。
　神華集団は1995年に設立された国有企業で、 世界８大炭田の一つとされている神府東勝鉱区の開発・運営を担当しており、関連事業として鉄道、発電、貯炭設備、輸送設備を運営している。

---

中国国有石炭最大手　神華集団　http://ns.coalinfo.net.cn/shenhua/e1.htm

Shenhua Group Corp.is responsible for the overall planning/development & operation of the massive Shenfu Dongsheng coalfield as well as the related railway, power station, coal terminal and shipping fleet; pursuing the unified development of coalmine, railway, electric power, coal terminal and shipping fleet; undertaking the integrated operation of coal production/transportation/marketing; developing domestic & overseas investment & financing and trading business in the aforeaid respect and unfolding industrial development in the areas of finance, telecommunication and high-tech etc.

* Shenfu Dongsheng 世界8大炭田の一つとされている神府東勝鉱区

2005/3/7　日本経済新聞夕刊

ダウ・ケミカル　燃料電池事業を強化
　ＶＢと組む 携帯型を商品化へ
　ＧＭとは発電

　総合化学最大手の米ダウ・ケミカルは提携先を広げ、燃料電池事業を強化する。水素エネルギー開発ベンチャーのミレニアム・セル（ニュージャージー州）と組み、家電・軍事向けの携帯型燃料電池の商品化に乗り出す。ゼネラル・モーターズ（ＧＭ）とも燃料電池による発電事業を始動。燃料電池分野を新たな主力事業に育成する。
　ダウはミレニアム・セルに対し３％をまず出資、最終的にはミレニアム社の発行済み株の１９．９％を取得する権利を握る見込み。ミレニアム社はノート型パソコンや携帯電話向けのほか軍事用バッテリーシステム向けに同社が持つ独自の特許技術を使い、新型の携帯燃料電池を開発する。
　携帯燃料電池を含む携帯可能な電力源の市場規模は６０億ドル（約６３００億円）あるとみられ、ダウとミレニアム社は新商品投入により、市場規模の一段の拡大を狙う。両社は３年間の共同開発期間を設け、ミレニアム社の商品化に必要な技術・資金をダウが提供する。
　今年末にも第一弾の商品が登場する見通しで、２００８年をめどに量産体制を整える計画。新型電池について、両社は従来品より長い駆動時間や軽量化が見込めるとしているが、具体的な目標値は明らかにしていない。
　ダウはミレニアム社以外にも、ＧＭとの提携を通じてダウのテキサス工場で燃料電池による発電事業を展開中。昨年末には発電能力を年間７５キロワットから同１メガ（メガは１００万）ワットへと引き上げることに成功、０７年にも燃料電池を用いて同３５メガワットの商用発電を目指している。

2005/3/28　日本経済新聞夕刊

建材添加剤セルロース　ダウ・ケミカル大幅増産　信越化学抜き再び首位

　総合化学最大手の米ダウ・ケミカルは、建材や自動車排ガス処理に使う主要添加剤のセルロースを米独で増産する。増産規模は２万トン。これにより同社の生産量は６万５千トンとなり、信越化学の計画する６万３千トンを上回り、再び世界首位に立つ。セルロース需要が堅調なことから両杜ともさらに増産に踏み切る可能性があり、首位争いが激化しそうだ。
　セルロースの代表的な品種であるメチルセルロース製品を増産する。潤滑性を高める目的で用いており、タイル接着剤やモルタル添加剤のほか、自動車排ガス触媒やカプセルなど医薬品にも使われる。
　ダウは米ミシガンとルイジアナの２工場で計１万７千トン増産するために生産設備の増強を計画中。ミシガン工場は２００７年、ルイジアナ工場は０７−０８年にそれぞれ稼働する予定。
　さらに、独工場でも３千トン増産する計画で、現在、生産設備を増強中。来年初旬の完成・稼働を予定している。
　ダウは米独工場の増強に伴う投資額を明らかにしていないが、業界筋によると２億ー３億ドル（約２１０億−３１５億円）程度とみられる。米独の主力工場で生産能力を増強することで、世界市場のセルロース需要増にこたえる。
　セルロース生産は、信越化学が０３年末にスイスの化学大手からセルロース事業を買収したことで首位に立ち、０６年秋にかけて生産量を６万３千トンヘと引き上げる計画を公表していた。

Dow 2005/4/5

Dow and Snamprogetti developing breakthrough technology for styrene production
New Technology Would Realize Significant Cost Savings
http://www.dow.com/dow_news/corporate/2005/20050405d.htm

The Dow Chemical Company and Snamprogetti, the engineering and main contracting company of Italy's Eni, announced today that both companies are jointly developing a new process for the production of styrene monomer from ethane and benzene. The process, based on proprietary technology, would enable significant cost savings.

"We joined forces with Snamprogetti in the late '90s, combining their catalyst and engineering expertise with our strengths in styrene monomer technology. With this new process, we are moving away from the conventional styrene production process and raw materials," said Theo Walthie, business group president Hydrocarbons & Energy. "A process development unit has been in operation since late 2002. This allows us to test the production process and plant design. The results continue to be very encouraging. We believe that this technology will represent a step change in the costs of styrene production." Furthermore, greater location flexibility will be achieved.

In the dominant production process for styrene monomer today, ethylene and benzene react to form ethylbenzene, which is then dehydrogenated to styrene in the presence of an iron catalyst. "We, and others, have refined and improved this process over the last 65 years and industry is now approaching the point of diminishing returns on incremental improvements," explained Carol Dudley, vice President R&D Core, Hydrocarbons & Chemicals. "The significance of this new process would be that producers can take advantage of a much lower cost feedstock in ethane, eliminating the need for upstream investment in ethylene production at a steam cracker or ethylene purchases."

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

2005/6/21 Dow

Dow Completes Acquisition of Korea's Pacific Epoxy Co., Ltd.
http://news.dow.com/dow_news/prodbus/2005/20050621b.htm

The Dow Chemical Company announced today that it has completed the acquisition of Pacific Epoxy Co., Ltd., a manufacturer of converted epoxy resins in Korea, from Saehan Industries, Inc. (セハン)

Dow had previously acquired 80 percent of Pacific Epoxy Co., Ltd. in January 2001. The current agreement is for the remaining 20 percent of the company. Terms of the agreement were not disclosed.

Effective today, Dow becomes 100 percent owner of the Pacific Epoxy Co., Ltd. facility in Kumi, Korea. The 30,000 MT (66 million lbs) per year converted epoxy resin (CER) plant currently supplies brominated, solid, and solid-solution epoxy resins for use in protective coatings, electronics and specialties.

"This acquisition highlights Dow's commitment to the epoxy industry and the important role that the Asia Pacific region will continue to play for Dow and our customers," said Patrick Ho, business vice president of Dow Epoxy Products & Intermediates (EP&I). "The Asia Pacific region is an important growth market for our business, as rising incomes in this area have created higher demand for products that use epoxy resins - such as infrastructure, personal computers, mobile phones and automobiles. Our investment today complements our already strong, established presence in the Asia Pacific market and strengthens our leadership in this region."

Dow is the world's largest global supplier of epoxy products and intermediates and the most committed epoxy manufacturer in Asia Pacific. The company currently operates three epoxy manufacturing facilities in the region, including a 40,000 MT/year (88 million lbs) facility in Kinu Ura, Japan, a 41,000 MT/year (90 million lbs) facility in Zhangjiagang, China, and the Pacific Epoxy Co., Ltd. Kumi facility in Korea. Earlier this year, Dow announced its plan to build a state-of-the-art R&D Center in China to better serve its customers.

2005/9/15 Dow

Dow Aligns Business Portfolios to Drive Strategy; Executive Management Changes Announced
http://news.dow.com/corporate/2005/20050915a.htm

To further accelerate implementation of the company's long-term strategy, The Dow Chemical Company will realign its current three portfolios of businesses into two: Basic Plastics & Chemicals, and Performance Plastics & Chemicals, according to Andrew N. Liveris, president and CEO. Several executive changes have been announced as a result.
(注　従来： Performance Chemicals and Thermosets 熱硬化性樹脂, Chemicals and Intermediates, and Plastics. )

"Our strategy for the past decade has been to move to a basics- and performance-based business model," Liveris stated. "Dow is accelerating the implementation of that strategy, capitalizing on our historical strengths in low-cost production, as well as our growth and success in innovative, market-driven businesses. This alignment will drive independent strategies and actions based on the needs of each type of business within these portfolios, with the ultimate goal of maximizing Dow's earnings and extracting the full value of our company's strengths in diversification, integration, global reach, and technology."

Effective immediately, Liveris announced that:

"These moves further align our focus on our Strategic Themes." Liveris said. "Both the Basics and the Performance Portfolios are vital to Dow's long-term success, enabling value growth and furthering our product, systems and ultimately our solutions offerings to our customers. This change will sharpen the focus on the specific strategies, expertise and implementation required for every business to succeed."

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

2005/10/3 UOP

Honeywell to acquire remaining stake in UOP LLC Joint Venture
Acquisition Will Enhance Product and Service Offerings Of Honeywell's Specialty Materials Portfolio
http://www.uop.com/overview/8000.html

Honeywell announced today it has entered into a definitive agreement to acquire the 50 percent interest in UOP LLC currently owned by Union Carbide Corp., a wholly owned subsidiary of The Dow Chemical Company, giving Honeywell full ownership of the entity.
The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of 2005. Honeywell will pay $825 million for Dow's stake in UOP, with an adjustment for cash and outstanding debt in the venture at closing.
UOP is an established technology supplier to the refining and petrochemical industries worldwide and is playing a key role in meeting the world's increasing demand for energy, said Honeywell Chairman and Chief Executive Officer Dave Cote. The acquisition of UOP represents another significant transforming step for our Specialty Materials portfolio and is one more example of Honeywell's commitment to investing in innovative and productive solutions that meet global needs.
UOP is a leading international supplier and licensor of process technology, catalysts, process plants and consulting services to the petroleum refining, petrochemical and gas processing industries. UOP, which had 2004 annual revenues of $1.2 billion, will become part of Honeywell's Specialty Materials portfolio of businesses.
For more than 90 years, UOP has been recognized as a world leader in technology and innovation, said Nance Dicciani, president and CEO of Honeywell Specialty Materials. UOP is well positioned for growth as the world looks to enhance refining, petrochemical and natural gas capacities to meet increasing energy and feedstock demands. We are pleased to be adding such a great business to Honeywell Specialty Materials.
UOP is headquartered in Des Plaines, IL and has approximately 3,000 employees worldwide and eight manufacturing facilities throughout Europe, Asia and North America. UOP's technologies are mainly used in oil-derived products and chemicals, as well as the manufacture of plastics, detergents and fibers. UOP also produces catalysts, alumina adsorbents used to purify gas and molecular sieves used to dry air. Roughly half of the world's biodegradable detergents are produced with UOP technologies.
The acquisition of UOP is part of Honeywell's growth strategy for its Specialty Materials business. Over the past three years, Specialty Materials has focused on investment in select growth platform technologies, including fluorines, electronic materials and advanced fibers and composites. As part of this strategy, Specialty Materials has divested more than 10 non-core businesses, including a pending agreement to sell its U.S. nylon carpet fiber business. With the addition of UOP and the pending divestiture of the nylon fiber business, Honeywell expects Specialty Materials to have annual revenues of more than $4 billion in 2006.
Honeywell International is a $26 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit www.honeywell.com.
Honeywell Specialty Materials, based in Morristown, N.J., is a global leader in providing customers with high-performance specialty materials, including fluorocarbons, specialty films and additives, advanced fibers and composites, customized research chemicals, and electronic materials and chemicals.

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UOP was founded as the National Hydrocarbon Company in 1914 by California inventor Jesse A. Dubbs and Chicago industrialist J. Ogden Armour, with the goal of developing and licensing technology to the petroleum refining industry. In 1915 the name was changed to Universal Oil Products. Four years later, the company introduced its Dubbs thermal cracking process, a continuous process to convert crude oil into more useable products.

To learn the history of other UOP products and services, http://www.uop.com/overview/8061.html

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Announcing the sale, Dow Chief Executive Officer, Andrew Liveris, explained that despite the success of the joint venture with Honeywell, UOP is not considered strategic to Dow's future growth agenda.

2005/11/2 Dow

The Dow Chemical Company Plans to Close Polystyrene Plant at Barry, UK

The Dow Chemical Company announced today the decision to close its polystyrene production facility at Barry, South Wales, in the United Kingdom, by the end of 2005.

"This intended closure of the polystyrene plant at Barry involves extremely difficult decisions and reflects the competitive business climate that Dow faces in this industry," said Javier Constante, European polystyrene product director at Dow. "We must take action to maximize the efficiency of Dow's asset utilization in order to restore the long-term sustainability and profitability of Dow's polystyrene business."

Constante emphasized that Dow continues to be firmly committed to the polystyrene business. "With a total global polystyrene capacity of 2.3 million metric tons, Dow remains a leading producer in this industry," he said. "Our customers can expect a continued high level of service and quality, with their needs fully supplied from our other plants in Europe."

Dow produces STRYON* and STYRON A-TECH* Polystyrene Resins at six sites in Europe: Tessenderlo, Belgium; Schkopau, Germany; Lavrion, Greece; Terneuzen, The Netherlands; Bilbao, Spain; and Barry. The plant in Barry has a capacity to produce 75,000 MT annually of polystyrene but has operated historically below capacity.

The Barry site employs 24 people. The actual number of jobs that could be impacted will be determined during the 30 day employee consultation period.

March 28, 2006 Dow

Dow Moves Forward with Expansion Plans for Cellulosics
http://news.dow.com/dow_news/prodbus/2006/20060328a.htm

The Dow Chemical Company continues to make progress with its plans to increase cellulosics capacity at production facilities in Midland, Michigan; Plaquemine, Louisiana and Stade, Germany. As announced in March 2005, the expansions will enable an additional 20,000 metric tons of METHOCEL^TM cellulose ethers to be produced. This multi-phase expansion plan focuses on Dow's continued global leadership and commitment to the industrial and premium marketplace for water soluble polymers.

The first phase involves de-bottlenecking of current production capabilities at Dow's Stade, Germany facility. This phase is currently underway and will be completed in 2006. This is the second recent expansion at the Stade facility, with a full new train brought on-stream in early 2003.

Dow's North American facilities are the focus of the second phase of the project, with the first expansion in Midland. The equivalent of a full-train expansion will be achieved by installation of new post reactor processing equipment through optimization of our current assets. This project has received support for state and local tax incentives to move forward on an aggressive schedule for start-up in 2007. Expansion in Plaquemine will follow the Midland project and will include the first North American train capable of manufacturing hydroxyethyl methyl cellulose (HEMC), a functional polymer supporting our commitment to the construction industry. Dow is anticipating the Plaquemine facility start-up to occur in 2008.

Marty Kollmeyer, global business director for METHOCEL^TM cellulosics products at Dow, comments, "Dow's strategy is to invest in opportunities that will strengthen the Company's position in key growth economies around the globe and will enable us to grow our business with strategic customers and in strategic markets. Global demand for methyl cellulosics has been growing at an average of about 6 percent per year. These actions are consistent with our strategy to invest in our cellulosics business and maintain our historical leadership position by growing in all market segments on a global basis.

A global expansion of this magnitude is a significant investment to ensure we can meet our customers' needs. Based on continued demand strength across all industries, including construction - the largest - we feel it is critical to further develop our facilities and leverage new technologies. These expansions will also enhance our capability to provide even more specialized and premium products needed for the food and pharmaceutical businesses as well as the ability to participate in emerging new applications for these multi-functional polymers."

About METHOCEL
Dow MC and HPMC products, known as METHOCEL^TM cellulose ethers, are used in a wide variety of industries and applications, including tile grouts and mortars, tape joint compounds, plasters, paper coatings, resins and catalytic converters. Specialized Food grades and Premium grades are used respectively as functional food ingredients and in the pharmaceutical industry as tablet coatings and in controlled release formulations. For additional information about METHOCEL? cellulose ethers from Dow, please visit 　www.methocel.com.

METHOCEL cellulose ethers are water-soluble methylcellulose and hydroxypropyl methylcellulose polymers that bind, retain water, thicken, form films, lubricate, and much more. They add unique physical properties and outstanding performance to a huge array of products, including building materials, food, personal care products, and pharmaceuticals.

ヒドロキシプロピルメチルセルロース（HPMC）は、食品添加物公定書に収載されているメチルセルロース（MC）にヒドロキシプロポキシル基を導入したセルロースエーテルであり、同じく食品添加物公定書に収載されているカルボキシメチルセルロースナトリウム（CMC･Na）やカルボシキメチルセルロースカルシウム（CMC･Ca）と同じ範疇にあるセルロースの誘導体（セルロースエーテル類）である。
HPMC は、わが国では、平成15 年（2003 年）6 月に食品添加物として指定され、現在、「保健機能食品たるカプセル剤及び錠剤以外の食品に使用してはならない」との使用基準が定められている。
米国においては、GMP（Good Manufacturing Practice）のもと、直接食品添加物として、乳化剤、フィルム形成剤、保護コロイド、安定剤、分散剤及び粘稠化剤としての使用が認められている。また、欧州連合（EU）では、一部の食品を除き、一般食品にGMP のもとで使用することができる食品添加物とされ、広い範囲の食品に使用することが認められている。

2006/4/19 Dow

Dow To Build New P-Series Glycol Ethers Plant in Zhangjiagang, China 張家港
http://news.dow.com/dow_news/prodbus/2006/20060419a.htm

The Dow Chemical Company ("Dow"), the leading producer of glycol ethers, today announced that it will proceed with construction of a new propylene oxide-based glycol ethers facility at Zhangjiagang, Jiangsu Province, the People's Republic of China. This state-of-the-art facility is scheduled to come on line in late 2008, with an annual nameplate capacity of 120,000 metric tons.

Zhangjiagang, an established and strategic site for Dow, is located on the Yangtze River, approximately 200 kilometers (125 miles) upstream from Shanghai. It is centrally located to supply customers in the major, established markets of Japan, Korea and Taiwan, as well as a growing number of customers in China.

"We appreciate the support and loyalty our customers have shown us," says Jim McIlvenny, president, Dow Asia Pacific. "This investment underscores our commitment to China and is another step forward in our strategy to grow with our customers in emerging geographies."

"Customers recognize the value of DOWANOLTM PM glycol ethers in electronics, as well as paints and coatings applications" says Martin Sutcliffe, global business director, Glycol Ethers. "Our Asia Pacific customers already know Dow is committed to the region, now they will have a world-scale DOWANOL PM plant on their doorstep, as well as an established Butyl CELLOSOLVE? plant in Malaysia."

Dow's Zhangjiagang site is ideally situated to service both the domestic and export markets. The new glycol ethers facility will join three other world-scale, state-of-the-art facilities, including a converted epoxy resin plant and a styrene butadiene latex facility, as well as a joint venture polystyrene resin plant.

About Dow Glycol Ethers
The Glycol Ethers business, a member of the Specialty Chemicals Business Unit, is the industry leader in glycol ether products used in paints and coatings, cleaning products, inks, and electronics. Dow offers a full range of ethylene-based and propylene-based glycol ether products, including DOWANOL glycol ethers, and CELLOSOLVE and CARBITOL solvents. Production locations are in Seadrift, Texas; Hahnville, La.; Plaquemine, La.; Midland, Mich.; Stade, Germany; San Lorenzo, Argentina; and Kerteh, Malaysia (OPTIMAL Group of Companies).

2006/4/19 Dow

SINOPEC To Build Two Monoethylene Glycol Plants Based on METEORTM EO/EG Process Technology Licensed Through Dow
http://news.dow.com/dow_news/prodbus/2006/20060419d.htm

Dow Technology Licensing, a business group of The Dow Chemical Company and its consolidated affiliates (Dow), today announced that China Petrochemical International Company Limited (a fully owned subsidiary of SINOPEC) has agreed to license METEOR LEC EO/EG process technology from Union Carbide Chemicals & Plastics Technology Corporation, a subsidiary of The Dow Chemical Company, to build plants for SINOPEC Tianjin Branch and Zhenhai Refining & Chemical Company, Ltd.

SINOPEC Tianjin Branch will build a 420 KTA monoethylene glycol (MEG) plant as part of its 1 million MTPA ethylene cracker facility located in the Bohai Gulf, the closest seaport to Beijing. Zhenhai Refining & Chemical Company, Ltd. will build a 650 KTA MEG plant located in the southern region of mainland China.

"METEOR EO/EG process technology is unique compared to other technologies, both because of the simplicity of its plant design and because of its EO catalyst, which provides the rare combination of high efficiency and activity. China represents a tremendous growth opportunity for Dow and its customers and we are very pleased that SINOPEC has chosen METEOR EO/EG process technology to build its new monoethylene glycol plants," said Dr. Molly Peifang Zhang, vice president of Dow Technology Licensing.

"In addition to this agreement with SINOPEC, Dow has licensed and built three METEOR EO/EG process technology plants through joint venture agreements. The reputation of METEOR EO/EG plants for best-in-industry raw material efficiency coupled with excellent capital efficiency and operability influenced SINOPEC's decision to license this technology. The LEC version of the technology is designed to satisfy SINOPEC's drive to lower energy consumption," said Joe Bromley, business director, Licensing and Catalyst, METEOR and LP OxoSM Technology.

METEOR EO/EG process technology has a simpler design than other EO/EG technologies, resulting in significant savings for the company's licensees. Compared with other plant technologies, METEOR EO/EG process technology reduces equipment requirements and overall plot plan size, dramatically improves raw material utilization and requires less start-up capital. The simplicity of the METEOR process provides optimal reliability and ease of operation and maintenance.

2006/5/31 Dow

Signing a Letter of Intent with Zhangjiagang Free Trade Zone Dow Intends to Significantly Step Up Investment in China　張家港
http://news.dow.com/dow_news/prodbus/2006/20060531a.htm

The Dow Chemical Company, a world leader in the chemical industry, today signed a Letter of Intent (LOI) with the Administrative Committee of Zhangjiagang Free Trade Zone in Jiangsu Province and expressed its intention to significantly step up investment in China.

Located on the Yangtze River approximately 200 kilometers (125 miles) upstream from Shanghai, Zhangjiagang is uniquely positioned to supply domestic customers as well as export markets. The LOI covers products in three downstream Performance businesses of Dow - DOWANOL(TM) PM glycol ethers in Specialty Chemicals, styrene butadience latex in Dow Latex, and STYROFOAM(TM) brand insulation in Dow Building Solutions.

Dow currently operates three world-scale, state-of-the-art facilities in the Yangtze River International Chemical Park in Zhangjiagang Free Trade Zone: a converted epoxy resin plant, a styrene butadiene latex facility, as well as a polystyrene resin plant. Total investment so far is about US$300 million. The facilities under the LOI would bring an additional US$200 million investment to this strategic site in China.

We welcome Dow, our long term partner, to look into further investment in Zhangjiagang, said Wang Xiang, Mayor of Zhangjiagang, Jiangsu Province. We have been working closely with Dow in the region for nearly 10 years. The experience has been good and our partnership solid and successful. We look forward to further strengthening this partnership and, based on the principles of sustainable development, bringing more growth and added value to the Zhangjiagang community.

Jim McIlvenny, President of Dow Asia Pacific, said, This LOI again underscores Dow's commitment to investing in emerging geographies, in particular China which is a key component of Dow's global business strategy and a significant contributor to our growth and development. As we look into expanding our downstream Performance businesses in China, we will continue to explore upstream and other investment opportunities and collaborate with partners to strengthen our leadership position.

With its excellent location, efficient infrastructure and a forward-looking leadership, Zhangjiagang is an ideal base to expand our production capacity in China, added Frankie Ko, Vice President of Business Development, Dow Greater China. We intend to step up our investments in China so as to better meet the growing demand and needs of our customers in the downstream market.

China is Dow's third largest market behind the US and Germany in terms of sales. In 2005, Dow Greater China's revenue was US$ 2.3 billion.

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

2006/6/29 Dow 　　　 　　　　　　　　　　　　　　浙江省湖州市

Dow Signs Agreement to Acquire Zhejiang Omex Environmental Engineering Co. Ltd., Increasing Its Water Components Portfolio
http://news.dow.com/prodbus/2006/20060629a.htm

The Dow Chemical Company and Zhejiang Omex Environmental Engineering Co. Ltd. (OEE) today announced that Dow has agreed to acquire OEE. This acquisition establishes Dow as a leader in advanced component offerings for water purification.

OEE will bring new critical components that, together with Dow's existing technology offerings, will create the framework for a new Dow Water Solutions business. Terms of the agreement have not been disclosed.

The acquisition of OEE will allow Dow to expand into three critical, enabling component technologies for water treatment: Ultrafiltration (UF), Membrane Bio-Reactor (MBR) membranes, and Electrodeionization (EDI). With these technologies, Dow can now provide an enhanced component offering for its global customer base.

Dow is a leader in reverse osmosis membranes 逆浸透膜(RO膜）and ion exchange resins, and this further solidifies our position as a water solutions leader through additional, specialized components, said Ian Barbour, general manager, Dow Water Solutions. Adding the technologies from OEE, along with the current expansion in FILMTEC membrane production capabilities in Minneapolis, Minnesota, further demonstrates Dow's larger commitment to the water purification industry, and our ability to continue to lead as a global component supplier and solutions provider.

These new technologies also will accelerate Dow's growth in the water business. Ultrafiltration, in particular, is one of the fastest growing of these component technologies. Dow can now offer its customers easier access to these additional components and provide a higher level of integration with Dow's existing membrane technologies.

We clearly provide the leading reverse osmosis (RO) membrane with FILMTEC elements, Barbour added. The strategy for Dow is to expand our enabling components offering to be an even more valued supplier to our original equipment manufacturer (OEM) customer base. OEE allows Dow to move towards its strategic goals as a comprehensive component supplier for water purification.

The acquisition of OEE, which is situated in Huzhou, Zhejiang, China, enables Dow to further penetrate one of the fastest growing regions for water treatment components. OEE has provided design engineering and installation for high-purity water facilities throughout China since 1995. It is one of China's premier water treatment and design companies, specializing in pure and ultra pure water applications. With a new custom-built 20,000 square meter facility, OEE employs over 500 people, primarily in China, involved in manufacturing, design, engineering and fabrication. The mission of OEE has been to continuously improve people's living standard with its experienced water solutions expertise.

Dow provides highly productive and effective separations solutions based on FILMTEC^TM reverse osmosis (RO) and nanofiltration (NF) elements, DOWEX^TM ion exchange resins and ADSORBSIA^TMGTO^TM titanium-based arsenic removal media.

Dow is the only global manufacturer of both membrane and ion exchange products. Both of these technologies separate dissolved minerals and organics from solutions, producing water that meets the most stringent water purity standards today and achieving the highest quality water with lower operating costs.

Water purification products from Dow are used for the full spectrum of water treatment applications, including industrial water treatment, municipal water treatment, production of ultra pure water, commercial and home drinking water purification, sweetener processing, and other selected specialty applications. They are also used in the purification of foods, pharmaceuticals and other products.

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2006/7/13 Dow

Dow Completes Acquisition of Zhejiang Omex Environmental Engineering; Further Strengthens Water Solutions Portfolio
Newly expanded portfolio addresses rapidly growing need for environmentally sustainable water treatment in China and globally
http://news.dow.com/dow_news/prodbus/2006/20060713a.htm

The Dow Chemical Company today announced completion of its acquisition of Zhejiang Omex Environmental Engineering (OEE). The acquisition of the water treatment company further strengthens Dow's leading position in advanced solutions for water purification at a time of increasing efforts to address the world's water scarcity and environmental sustainability challenges.

This acquisition represents a very strategic and timely addition to Dow's existing technology components. The supply of clean water is one of the most important sustainability challenges facing mankind and Dow will be part of the solution now, and in the future. Our combined technology strengths and industry knowledge enable Dow to deliver more effective, tailored water solutions to our customers. As we expand our water purification efforts, we are advancing sustainable development in China and around the world, said Jim McIlvenny, president of Dow Asia Pacific.

Water purification solutions from Dow are used for the full spectrum of water treatment applications, including industrial water treatment, municipal water treatment, production of ultra pure water, drinking water purification, and other selected specialty applications. The strategic acquisition of OEE further strengthens Dow's offering in this important area, creating the framework for a new Dow Water Solutions business.

As a company that is constantly improving what is essential to human progress through science and technology, we are very pleased to be working with our customers and partners to address very significant water quality and supply challenges through innovative and cost-effective water treatment solutions. We are very excited that the OEE team is joining us to drive this forward, Mr. McIlvenny said.

OEE is a premier water treatment and design company, specializing in pure and ultra pure water applications. This acquisition is significant in that it brings three critical, enabling component technologies for water treatment: Ultrafiltration (UF), Membrane Bio-Reactor (MBR) membranes, and Electrodeionization (EDI), to Dow, enabling us to be a complete solutions provider and components supplier. Together, we are confident both Dow and OEE will move to a new level of excellence in this important area, said Ian Barbour, general manager, Dow Water Solutions.

Wu Yang, president of OEE, said, We are very excited to be a part of Dow, a global leader in innovation and sustainability. OEE is dedicated to providing leading technology and the highest quality water treatment solutions to our customers and partners. Dow's global resources and commitment to science will enable us to move to the next level, while OEE significantly enhances Dow's water solutions offering globally.

Upon close, OEE will be part of the Dow Water Solutions business and continue to be a high quality system supplier in China. In the rest of the world, the acquired components will be expanded to Dow's existing OEM customer base.

OEE is an innovative company that has been providing design engineering and installations for high-purity water facilities since 1995. Located in Huzhou, Zhejiang, China, it has become a premier water treatment and design company, specializing in pure and ultra pure water applications.

Dow also provides highly productive and effective separations solutions based on FILMTEC^TM reverse osmosis (RO) and nanofiltration (NF) elements, DOWEX^TM ion exchange resins and ADSORBSIA^TM GTO^TM titanium-based arsenic removal media.

Dow is the only global manufacturer of both membrane and ion exchange products. Both of these technologies separate dissolved minerals and organics from solutions, producing water that meets the most stringent water purity standards today and achieving the highest quality water with lower operating costs.

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Zhejiang Omex Environmental Engineering Co. Ltd.　June 29, 2006
http://www.dow.com/liquidseps/backgrounder/oee.htm

Zhejiang Omex Environmental Engineering Co. Ltd. (OEE) is an innovative company that has been providing design engineering and installations for high-purity water facilities since 1995. Located in Huzhou, Zhejiang, China, it has become a premier water treatment and design company, specializing in pure and ultra pure water applications.

OEE's specialties include research and development, design, engineering, manufacturing, installation, and service of Integrated Membrane Technology (IMT) equipment used in the process of water treatment.

IMT consists of three major membrane-based water treatment components sold under the OMEXELLTM brand. They are: Ultrafiltration (UF), Reverse Osmosis (RO) and Electrodeionization (EDI). OEE manufactures both UF and EDI components. OEE has emerged as a leader in IMT with its patented spiral wound EDI and unique hollow fiber UF technologies. OMEXELL component manufacturing is proudly certified as compliant with ISO 9001.

The primary systems manufacturing is done in a new, custom-built 20,000 square meter facility. The complex in Huzhou also has a 4,700 square meter membrane manufacturing center and a 5,600 square meter membrane R&D center complete with the latest technology in testing and analytical equipment.

Industry proven UF and EDI systems, together with RO, make IMT a cost-effective alternative for total high-purity water treatment. There are many equipment options and configurations that these systems can be used in to provide specific water purification objectives.

UF-RO-EDI systems can be used in tandem for complete water treatment applications, independently for specialized applications, or in paired configurations such as UF-RO and RO-EDI for alternate water treatment requirements.

OEE currently employs over 500 people involved in manufacturing, design, engineering and fabrication.

2006/8/9 Dow

Dow Epoxy to Invest US$200 Million to Accelerate Growth in China
Construction of new plants, capacity expansion and new Global Application Development Center support epoxy market growth in China
http://www.dow.com/facilities/asiapac/greaterchina/en/news/20060809a.htm

Dow Epoxy, a business unit of The Dow Chemical Company (Dow), today announced plans to invest more than US$200 million over the next five years in manufacturing and R&D facilities in China. Dow Epoxy is a leading global supplier of epoxy resins and related feedstock products with 10 manufacturing facilities worldwide, including plants in Zhangjiagang, Jiangsu Province, China; Gumi, Korea; and Kinu Ura, Japan.

To support continued growth in China and the broader Asian region, Dow Epoxy plans to build a 100,000 MTPA world-scale liquid epoxy resins (LER) plant at its existing site in Zhangjiagang, and a 150,000 MTPA epichlorohydrin (ECH) plant in a soon-to-be-announced site also in China. Both units are expected to start up in the 2009-2010 timeframe. At the same time, Dow Epoxy plans to expand the capacity of its converted epoxy resins (CER) plant in Zhangjiagang from its current 41,000 MTPA to 75,000 MTPA. In another related move, Dow Epoxy will also establish a Global Application Development Center in China, further strengthening customer support in China and across the region.

China is the world's fastest growing market for epoxy products and, together with other Asian markets, plays an important role for Dow and our customers. The new investments demonstrate our confidence and commitment to the China market and to our customers, says Patrick Ho, business vice president, Dow Epoxy. Dow Epoxy is a leading supplier in China and the Asia Pacific region, building on our global supply network and market-focused R&D capabilities. Our investments in ECH and LER production in China would give us in-market supply capabilities and the advantage of a fully-integrated operation which would put us in a uniquely competitive position to accelerate our growth and the growth of our customers.

New Epichlorohydrin Plant Based on Dow's Breakthrough Technology

Dow Epoxy is one of the largest ECH suppliers in the world. The new 150,000 MTPA world-scale ECH plant in China, which is expected to start up in 2010, would be the first to use a new Dow proprietary glycerine-to-epichlorohydrin technology. Glycerine is a bio-renewable product generated during bio-diesel production. The use of glycerine as the primary feedstock in Dow's ECH manufacturing represents a major technology breakthrough, providing significant cost and environmental advantages versus the conventional process technologies.

First World-Scale Liquid Epoxy Resins Plant in Zhangjiagang , China
Dow Epoxy's plans to build the first LER plant in China underscores the business's commitment to support rapid increases in market demand in China. The new 100,000 MTPA LER plant, based on state-of-the-art technology, would be located in the Yangtze River International Chemical Park in Zhangjiagang. Part of Dow's global LER supply network, which includes facilities in the U.S., Germany, Italy, Brazil, and Japan, this new LER plant in China is expected to start up in 2009.

Converted Epoxy Resins Capacity Expansion
Started up in 2003, the CER plant in Zhangjiagang has been supplying epoxy resins to high value, downstream industries including electronics, marine, automotive and appliances. The planned capacity expansion would add 34,000 MTPA in 2008, further strengthening Dow Epoxy's ability to meet growing customer needs in China.

Global Application Development Center Supports Local Market Growth
To help accelerate its application development and technical support capabilities in the region, Dow Epoxy will locate its Global Application Development Center in China, leveraging Dow's state-of-the-art Research and Development Center in Shanghai. The new Application Development Center will deliver innovative, timely and effective solutions to support customers primarily in the electrical laminates and coatings markets. Scheduled to begin activities in the first quarter of 2007, the center has been designed to meet the increasing demand for the Dow Epoxy products and technologies in China and the broader region, and will serve as a base for ongoing product research and development.

Leadership for the Future
Dow Epoxy is committed to establishing leading supply and customer support positions in all regions in its core markets of coatings, electrical laminates and civil engineering, which continue to record strong demand growth for high quality epoxy products in China. As one of the world's leading suppliers of epoxy resins, we continue our disciplined approach to being the most reliable, technology-focused supplier of choice in all regions, supporting customers in their growth and innovation, says Ho. We will continue to take advantage of growth opportunities and, most importantly, to sustain our leadership well into the future.

About Dow Epoxy
Dow Epoxy is one of the world's largest producers of epoxy resins and intermediates, with strong positions in a number of major applications including coatings, electrical laminates and civil engineering. Three of the company's 10 epoxy plants are in the Asia Pacific region, including a 41,000 MTPA facility in Zhangjiagang, China; a 40,000 MTPA facility in Kinu Ura, Japan; and a 30,000 MTPA facility in Gumi, Korea. Dow Epoxy is also the global market leader in epichlorohydrin, with more than one-third of global capacity share and manufacturing facilities in all major regions. More information about Dow Epoxy is available at www.dowepoxy.com and www.epoxyavenue.com.

About The Dow Chemical Company
Dow is a diversified chemical company that harnesses the power of science and technology to constantly improve what is essential to human progress. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

* Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow

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January 31, 2006 Solvay

Solvay builds new Epichlorohydrin plant to meet growing demand with innovative production process
A strategic outlet for booming‘green'biodiesel industry
http://www.solvay.com/services/newsfrompo/0,,38696-2-0,00.htm

Solvay announces today that it will build a new epichlorohydrin plant on its industrial site of Tavaux, France, implementing a novel process with greatly enhanced environmental performance. The process, called Epicerol, was successfully developed by Solvay's R&D and is based on the transformation of glycerine, a by-product of the biodiesel industry. The new plant, which is scheduled to be operational by the first half of 2007, will be fed with glycerine derived from rapeseed oil and fits perfectly with the development of the Biodiesel industry actively supported by the French government.

2006/8/6 Dow

Dow and Izolan Form Joint Venture to Serve Growing Systems Business in Russia
http://news.dow.com/dow_news/corporate/2006/20060808d.htm

The Dow Chemical Company and Izolan announced today the formation of a joint venture company that will provide customer-tailored, polyurethane systems products to a growing customer base in Russia. Subject to regulatory and other customary approvals, the new company, Dow Izolan, will be based in Vladimir, a city 170km north east of Moscow.
Dow Izolan will combine Dow's Polyurethane Systems business, known for its global leadership position in technology and raw materials back integration, with Izolan's strong local customer focus, product positioning and market experience, to become the leader in Russia's polyurethane systems house marketplace.
The new company will employ more than hundred employees, mainly from Izolan's current site in Vladimir. Further, the joint venture plans to build a new, large, state-of-the-art production plant in the Vladimir area within the next two years. The new facility will produce a broad variety of polyurethane systems products to meet the growing needs of customers in the region.
"This joint venture demonstrates Dow's continued commitment to invest in our Performance businesses and to grow in emerging geographies," stated Pat Dawson, vice president for Dow Polyurethanes. "By blending the strengths of both our companies, we are establishing the foundation for a strong and successful partnership that will better serve the needs of customers, accelerate innovation and provide opportunities for additional investment in the region." Dawson added.
No further details relating to the transaction were disclosed.

About Dow
Dow is a diversified chemical company that harnesses the power of science and technology to constantly improve what is essential to human progress. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

About Isolan
Located in Vladimir (Russia), Izolan was established in 1991 by recognized Russian specialists in the polyurethanes science and chemistry applications. Izolan main activity is the production and sales of Polyurethane Systems for rigid and flexible foams. Izolan employs about 100 employees and has more than 400 customers in Russia and the CIS (Commonwealth of Independent States). In 2005, Izolan Systems sales in Russia reached more than 20,000 MT, making Izolan the market leader in the Polyurethane Systems in Russia and the CIS. More information about Izolan can be found at www.izolan.ru.

About Dow in Russia
Dow has been present in Russia since 1974 with sales activities and technical support provided from the representation office in Moscow and the service center in Zelenograd. Recently, Dow announced the construction of a production plant in the village of Kryukovo, close to Moscow, to produce STYROFOAM- extruded polystyrene insulation boards (XPS) and other thermal insulation products designed to increase the energy efficiency of homes and commercial buildings.

About Dow Polyurethane Systems
Dow Polyurethane Systems provides formulated polyurethane systems for the manufacture of flexible, rigid and microcellular foams, elastomers, adhesives, coatings or binders used in such applications as construction, automotive, footwear, sports equipment and furniture. Focused on meeting the specific needs of customers in their local region, Dow Polyurethanes Systems operates a global network of 18 systems houses with manufacturing units and 8 service centers, supported by three research and development centers. Dow Polyurethane Systems is focused on providing innovative, tailor-made solutions to customers world-wide. For more information, please visit www.dowpolyurethanes.com.

August 31, 2005　Dow

Dow to Build a New Center in Shanghai, China
Underscoring its commitment and positioning for long term growth

The Dow Chemical Company today announces that it will build a new Dow Center in China at the Zhangjiang Hi-Tech Park in Shanghai which can house more than 1,000 employees.

The new Dow Center will be comprised of a state-of-the-art research and development (R&D) facility as well as a global information technology (IT) center, with other service and support facilities as well. The Center which takes up more than 65,000 square meters will have created 600 new jobs when it is completed in 2007.

Commenting on the announcement, Andrew Liveris, President & CEO of Dow said, "China is an important growth frontier for Dow and we are excited at the establishment of a Dow Center in the country. It not only underscores our commitment but is key to position Dow for our long term growth and sustainability in China."

The decision to locate the new Center in Zhangjiang follows months of evaluation studies on various cities and Hi-Tech Parks in the country and the announcement in January this year of the plan to establish the Center. "With its proximity to our customers, an efficient infrastructure and a visionary leadership, we find Zhangjiang a great location for our Center in China," said Jim McIlvenny, President of Dow Greater China.

"The new R&D Center will enable our growth through market-driven scientific and technological innovations, enhance current product platforms and create the product platforms of the future," McIlvenny said. He added that the new IT center in China will provide systems and work process support to Dow globally.

Preparatory works are already underway and it is expected that the IT components of the new Dow Center can be set up by end of the year, and the entire center will be operational in 2007.

Dow has a significant presence in Greater China with 10 manufacturing sites, business centers in 5 major cities and more than 1,300 employees. With revenues of US$ 2.2 billion in 2004, Greater China is the third largest geography in terms of sales for Dow behind the United States and Germany.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

2006/8/31 Dow

Dow Announces Plant Closures To Strengthen Competitive Position

In its ongoing drive to improve the competitiveness of its global operations, The Dow Chemical Company announced today that it will shut down a number of assets around the world.

As a consequence of these shutdowns, and other optimization activities, the Company expects to incur a charge in the range of $550 million to $650 million, which includes costs such as severance and asset write-downs.  This charge will be reflected in Dow's third quarter of 2006 results.

One of the fundamental drivers of Dow's future success is the Company's commitment to maintain a sharp focus on financial discipline and low cost to serve, explained Andrew N. Liveris, Dow's chairman and chief executive officer.

Part of that commitment involves continually looking for ways to enhance our efficiency and our cost-effectiveness - through good times as well as bad - to ensure we remain competitive across every business and in every geographic region. Today's announcement highlights a number of decisions by Dow in support of that objective, and demonstrates our resolve to actively manage the Company's portfolio at all points in the cycle, he said.

The Company expects that these actions, when fully implemented, will reduce structural costs by approximately $160 million a year.

In making the announcement, Liveris acknowledged the concern that the news would cause at the affected sites and in surrounding communities.

We well recognize the impact of these decisions on our employees, their families and those living in the communities around our sites; we will work hard to minimize the negative consequences of these necessary business decisions, said Liveris.

The most significant shutdowns will take place at Dow's facilities in Sarnia and Fort Saskatchewan, Canada, and the Porto Marghera plant in Italy.

In Sarnia, all production activity will cease by the end of 2008, reflecting the outcome of individual assessments by each of the four businesses located at the Ontario facility. The assessments, which were triggered by the recent suspension of ethylene shipments through the Cochin Pipeline, highlighted a variety of issues related to the effectiveness, efficiency and long-term sustainability of the Sarnia-based assets. As a consequence:

• The low density polyethylene plant will be shut down over the coming weeks;
• Polystyrene production will cease before the end of this year;
• Latex production from the UES facility will shut down by year-end 2008; and
• The polyols plant will also shut down by year-end 2008.

In Fort Saskatchewan, the Company will shut down its chlor-alkali and direct chlorination ethylene dichloride plants by the end of October 2006. This decision was driven by the substantial capital costs required to maintain long-term operations at the 27 year-old facilities - an investment that could not be justified based on expected rates of return.

In Porto Marghera, Italy, the Company has made the decision to not restart production of the toluene diisocyanate (TDI) facility, which was shut down for planned maintenance in early August. Fundamentals in the TDI business remain weak due to excess global production capacity.

The Company is also writing off obsolete technology assets and capital project spending that has been determined to be of no further value.

During the past three years, the Company has shut down more than 50 manufacturing facilities across the globe - yielding a significant reduction in structural costs - while continuing to invest in long-term growth, said Liveris. And that focus on asset optimization will remain sharp, no matter where we are in the business cycle, ensuring that we maintain our competitive edge as we accelerate a strategy focused on dampening cyclicality and driving earnings growth.

About The Dow Chemical Compan
Dow is a diversified chemical company that harnesses the power of science and technology to constantly improve what is essential to human progress. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

September 25, 2006 Dow

Dow Polyurethanes Successfully Completes Testing Phase for Natural Oil Polyols
Confirms Plans for Market Development Scale Production in 2007

Dow Polyurethanes, a business unit of The Dow Chemical Company, has successfully completed preliminary development of natural oil polyols (NOPs) for urethane formulations and will begin product sampling with a select group of customers immediately.  Dow plans to begin market development scale production of the next-generation polyols in 2007.

Since first announcing its intention to conduct small-scale product testing of NOPs with select customers in June of 2005, Dow has continued to invest in further advancing the technology and capabilities of these next generation products.  The company has now achieved the performance milestones necessary to support moving ahead to the market development scale production phase.

"Our developmental work has reached the point where we are now able to produce natural oil polyols that can match or exceed the performance of hydrocarbon-based products, and at fairly high levels of natural oil polyol content," said Pat Dawson, business vice president, Dow Polyurethanes. "Dow's continued work in developing NOPs illustrates our continued commitment to pursuing practical technology options for small scale, economical and enviromentally advantaged feedstocks where they make sense, support our business strategies and, most importantly, meet the needs of our customers."

Early developers of NOPs experienced several performance challenges when incorporating NOPs into formulations such as retaining tensile strength, resiliency, and compression set.  And, as they increased the level of NOPs in formulations, the processability of the foam was often compromised.

"Dow's mastery of polyurethanes chemistry - earned from over 50 years in the business - along with new technology, has enabled us to make significant progress on many of these critical performance issues," Dawson explained.  We've achieved this improved level of performance by creating optimized blends of NOPs and propylene oxide polyols.  By working with a select group of customers during this next phase, we will continue to refine the performance attributes of these products so that they meet specific customer needs."

To enable more extensive product sampling and scale-up of small, beta projects, Dow plans to begin market development scale production of soy-based polyols in 2007.  Meanwhile, the company is exploring various production options to support additional capacity as customer demand for the products grow.  Based on progress in this second phase, Dow will evaluate options for this new line of natural oil polyols, which includes bringing on additional capacity and expanding into new applications and geographies.

"We are very pleased with our progress to date.  As we continue to hit the milestones set for each additional phase of the project, we get closer and closer to full commercialization of these next generation products," Dawson said.

Dow's investment in natural oil polyols is consistent with the company's recently announced 2015 Sustainability Goals, one aspect of which calls for investment in products and technologies that will help reduce industry's dependency on non-renewable resources.  Natural oil polyols can be made from soybeans, sunflower seeds or rapeseeds, although Dow's technology currently focuses on a polyol that contains a significant percent of oil extracted from soybeans. Dow's intention is to ultimately develop a NOP-based multi-generational product line that provides customers with superior solutions to meet their needs in applications such as flexible slab, molded, and some CASE applications. In addition, other Dow businesses, such as Dow Automotive, are working with their customers to introduce natural oil polyols into automotive applications.

"We now have the technology, the results and the capabilities to take the first step toward providing a full line of natural oil polyols to customers around the globe," Dawson stated.

About Dow Polyurethanes

Dow is the world's largest producer of polyether polyols, a leading producer of quality aromatic isocyanates, such as MDI and TDI, and a major supplier of propylene oxide, an essential component of polyether polyols. Dow's polyurethanes products and formulated systems are used in rigid foams, flexible foams, adhesives, sealants, coatings, and elastomers, as well as many other applications. Dow also offers the latest in polyol technology with its VORANOL™ VORACTIV™ polyols, part of an ongoing initiative by Dow to lead the industry in providing high-performance products with reduced VOC-emissions. For more information, visit www.dowpolyurethanes.com, www.pusystems.com and www.voractiv.com.

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June 22, 2005 Dow

Dow Cites Progress In Natural Oil Polyols
http://www.dow.com/polyurethane/eu/resource/news/20050622a.htm

The Dow Chemical Company reports that it has made significant progress toward developing consistent soy-based polyols for urethane formulations. Soy-based polyols can substitute for a considerable percentage of hydrocarbon-based polyols, providing customers with greater economic stability and significant environmental advantages. David Babb, Ph.D. and scientist for Polyurethanes at Dow presented the information at a recent United Soybean Board meeting held in Detroit, Michigan.

"The biggest challenge in working with natural oils is the variations of the fatty acid makeup in the oils. If fatty acids are not controlled, final urethane product performance is impacted, thereby impacting overall customer acceptance and satisfaction," stated Babb. "We've been able to successfully overcome these challenges by utilizing a multi-step process that selectively modifies the natural oils."

Babb noted that Dow is focusing initially on developing soy-based polyols for flexible slab 軟質スラブ用 polyurethane products, the largest market for polyols today. Dow has achieved production success at the lab and pilot-plant scale. Foam performance data from products made in the company's pilot plant indicate that key product properties have been matched with formulations incorporating 35 percent soy monomer. This preliminary work also required no special processing steps, indicating that customers should not have to make any equipment or process modifications to work with the new soy-based polyol products.

Producing polyols from natural oils, such as soy, is increasingly being viewed by the industry as a viable alternative to hydrocarbon-based feedstocks due to the favorable environmental advantages and economic stability of these raw materials. Soy is an annually renewable resource that is cost-competitive and has reduced impact on the environment. From plant growth to polyol production, soy polyols are expected to require about half the fossil fuels and feedstocks required by traditional polyols. In addition, the introduction of natural oils into the polyurethane supply chain can provide an opportunity for polyurethane suppliers and customers to reduce their dependence on natural gas and crude oil, whose highly volatile and increased costs continue to make it difficult for them to compete.

Dow plans to start product sampling with select flexible slab customers in the U.S. and Europe in the fourth quarter of 2005 and will continue at least through 2006. Once pre-commercial trials are successfully completed, the company will evaluate full commercial investment in this technology.

About Polyols and Polyurethanes
Polyols are a component in the production of polyurethanes, which are rigid foams, flexible foams, and adhesives used in appliances, automotive parts, adhesives, building insulation, furniture, bedding, footwear and packaging. Dow is a leading global supplier of polyether polyols and other polyurethane raw materials, and offers one of the broadest lines of polyurethane products in the industry. For more information on Dow Polyurethanes, visit www.dowpolyurethanes.com.

October 20, 2006　Dow

Dow to Significantly Enhance its Capabilities to Serve Asian Customers Through Construction of a New Dow Center in China

The Dow Chemical Company, a world leader in science and technology, today commenced construction of a new state-of-the-art Dow Center in Zhangjiang Hi-Tech Park, Shanghai. A major milestone for Dow's development in China, the world-class facility will further strengthen the Company's capability to offer unique and innovative solutions to meet rapidly evolving customer needs in China and the Asia Pacific area.

The 65,000 square-meter Dow Center will be a major establishment supporting a variety of key functions which include a Research and Development (R&D) facility, a global Information Technology (IT) center, as well as other administrative and support facilities.

"With the New Dow Center Project officially commencing today, we are taking a major, significant step forward in bringing under one roof our best people, best technologies, and best work processes to support our customers in China, across the Asia Pacific region and globally," said Jim McIlvenny, President of Dow Asia Pacific.

When completed in 2008, the Center will house up to 1,600 employees and will become a major business and innovation hub for Dow in Asia Pacific which will create even more synergy by collaborating with other Dow facilities worldwide. 

Said McIlvenny, "As our customers grow, we'll step up our collaboration through market-driven scientific and technical innovation, enhancing current product platforms and creating the product platforms of the future together. With this new Center, we are even better positioned to meet our customer needs by developing - and delivering - high-performance products and applications tailored for their needs."

The new R&D facility - to be supported by hundreds of scientists - will include over 60 laboratories dedicated to developing innovative solutions for a wide range of industries vital for human progress such as building and construction, automotive, human health, and personal care.

The new IT Center will provide leading edge technologies - hardware, software and integrated systems - as well as services and work processes to support Dow's operations in China, Asia Pacific and globally.

With 2005 revenues at US$2.3 billion, Greater China is Dow's third largest market behind the US and Germany in terms of sales.

Platts　2006/11/21

Dow Epoxy to boost allyl chloride capacity in Texas by 20 kt/year

US-based Dow Epoxy, a business unit of the Dow Chemical Co, will expand its allyl chloride manufacturing capacity at its plant in Freeport, Texas, by 20,000 mt/year (45 million lbs/year), the company announced Tuesday. The added capacity, expected to be available in the third quarter of 2007, brings total capacity at the allyl chloride plant to 360,000 mt/year (794 million lbs/year). The debottlenecking project would cost the company $1.6 million.
"We view this incremental expansion as a strategic investment to meet the growing needs of customers worldwide," said Tom Heldt, Dow Epoxy global product manager for liquid epoxy resins and global marketing manager for intermediates. "The market has grown increasingly tight and we expect strong demand ahead (especially in the water treatment sector)." Allyl chloride is a reactant for chemicals used in water and wastewater treatment processes.
In addition to feeding the external market, the allyl chloride expansion will allow Dow to continue meeting its internal requirements for the manufacturing of epichlorohydrin and other important intermediates, resins and chemicals. The expansion will give Dow the flexibility to sell the allyl chloride or boost its epichlorohydrin output at the Freeport plant by as much as 22,000 mt/year (48.5 million lbs/year), the company said.

2006/12/18 Dow

Dow to Acquire Wolff Walsrode from Bayer
　Acquisition underscores Dow's commitment to Performance businesses;
　Will create US$1 billion Water Soluble Polymers business for Dow

The Dow Chemical Company and the Bayer Group today announced that they have reached agreement for Dow to acquire Bayer's Wolff Walsrode business group, primarily involved in cellulose products. The transaction is expected to close in the first half of 2007, subject to regulatory approval. Financial terms have not been disclosed.

For Dow, the agreement underscores the Company's commitment to strengthen its Performance businesses portfolio as part of its goal to dampen earnings cyclicality while driving growth.

We continue to deliver on our strategy - the acquisition of Wolff Walsrode is another step along our path to maximize long-term shareholder value from investments into advantaged technologies, growing end-use markets and emerging geographies, said Andrew Liveris, Dow's chairman and chief executive officer.

Bayer announced in March 2006 that it would divest its subsidiaries H.C. Starck and Wolff Walsrode AG. I'm pleased that following the sale of H.C. Starck, we've also found a buyer that offers promising perspectives for the future of Wolff Walsrode, said Bayer management board chairman Werner Wenning. As planned, the proceeds will help to finance the acquisition of Schering.

Wolff Walsrode, with 2005 revenues of more than US$400 million, would become an integral part of Dow's Water Soluble Polymers business.

The acquisition will create a US$1 billion performance business for Dow. We will accelerate growth, ensure long-term supply, and offer a broad portfolio of differentiated solutions by expanding our collective expertise and capabilities, said Romeo Kreinberg, Dow's executive vice president for the Performance Plastics and Chemicals portfolio.

Dow and Wolff Walsrode are complementary, bringing different products, processes, applications and expertise to the combined business. Dow is a good strategic fit for Wolff Walsrode and our expertise is an excellent basis for further growth in cellulosics in particular, said Dr. Dieter Herzog, managing director of Wolff Walsrode.

The new business would combine Wolff's advanced production technology and proficiency in HEMC (Hydroxyethyl Methyl Cellulose) and CMC (Carboxymethyl Cellulose) chemistry with Dow's leading HPMC (Hydroxypropyl Methyl Cellulose) product brands and industry expertise. Cellulose derivatives produced by the combined businesses are used across a broad range of industry sectors, including construction materials, personal care, pharmaceuticals, food and a number of specialty applications.

About Wolff Walsrode
The Wolff Walsrode group of companies develops and manufactures a variety of products based on cellulose, a natural raw material. Wolff Cellulosics produces and distributes high performance cellulose derivatives including hydroxyethyl methyl cellulose, carboxymethyl cellulose and nitro cellulose. Key applications include construction materials, food and personal care. Walsroder Casings specializes in the production and distribution of casings for the food industry, operating from plants in Germany and Poland. Wolff Walsrode employs some 1,500 people and had net sales of EUR 329 million in 2005. Its principal sites are in Germany in the Walsrode Industrial Park and the Bitterfeld Chemical Par

About Dow Water Soluble Polymers
The global Water Soluble Polymers business is a US$ 650 million business within the Performance Plastics and Chemicals portfolio of The Dow Chemical Company. It offers a wide portfolio of cellulose ethers and provides application and formulation expertise, products, and related technologies. The business employs nearly 700 people at 14 sites worldwide. Its brands include Amerchol, a global manufacturer and marketer of performance ingredients for personal care formulations; CELLOSIZE^TM Hydroxyethyl Cellulose (HEC); Dow Dispersion Sciences, an advanced technology for the personal care industry; DOW Latex Powders; ETHOCEL^TM Ethylcellulose Polymers; METHOCEL^TM Cellulose Ethers; and POLYOX^TM Water-Soluble Resins.

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Wolff Walsrode AG　A strong company with a wealth of know-how in cellulose derivatives
http://www.bayermaterialscience.com/Internet/global_portal_cms.nsf/id/Wolff_Walsrode_en

With its almost 200-year history, the Wolff Walsrode AG is one of Bayer's most traditional production sites. As a holding company, Wolff Walsrode operates the Competence Center for cellulose chemistry and markets the Walsrode Industrial Park (which is now open to outside companies), one of the most highly regarded economic locations in Lower Saxony.

The company has transferred its operations to the independent companies Wolff Cellulosics and CaseTech and the technical service provider Probis. It is particularly strong in the field of cellulose derivatives and services such as engineering, utilities, technical service, logistics, waste management and environmental protection, supporting Bayer Material Science in many key entrepreneurial functions. In this capacity, it makes a vital contribution to enabling its parent company to successfully assert itself as an innovative manufacturer. The CEO of Wolff Walsrode, Dr. Dieter Herzog, has no doubts whatsoever: "We play an important role within the Bayer MaterialScience group and are the driver for technological progress in the field of cellulose chemistry."

Our everyday life would be inconceivable without cellulose derivatives, which are used in a vast number of different products. They serve as thickeners in building materials such as tile adhesives, plasters and emulsion paints and also in foodstuffs, cosmetics and pharmaceuticals, and as binders in printing inks and surface coatings.

With its 1,270 employees, the Wolff Walsrode company posted sales last year of around EUR 329 million.

January 16, 2007　Dow

Dow Starts Up First Production Plant in Russia
　New Facility Will Produce STYROFOAM Brand Insulation Boards For The Building Industry

The Dow Chemical Company has started up its first ever production facility in Russia. The plant, located at Kryukovo, outside Moscow, will produce STYROFOAM brand extruded polystyrene (XPS) insulation boards for Dow Building Solutions, one of Dow's market-facing business units.

The project reinforces Dow's strategy to grow its performance business and to expand in new geographies, says Dow chairman and CEO Andrew Liveris. The STYROFOAM facility is a significant milestone in Dow's efforts to expand in the fast-growing Russian economy, Liveris says. The company is evaluating further investment opportunities there, in partnership with key domestic energy producers.

The plant also underscores Dow's long-term commitment to supplying Russia and Eastern Europe with technologically advanced building materials that enhance the comfort of living and working environments through effective moisture management and energy conservation.

"Our strategic aim is to establish Dow as an important and integral player in the building industry in Russia, says Kostas Katsoglou, business president, Dow Building Solutions.

This strategy is built upon our global expertise combined with a strong brand and in-depth product and application knowledge."

Dow has been established in Russia since 1974, and its business there has been growing rapidly. The company had combined sales of about $350 million in Russia and the Commonwealth of Independent States (CIS) in 2005, about a 50% increase over the previous year.

"Dow is highly committed to Russia and the CIS as a key area for growth, says Adriaan van den Berge, Dow general manager, Russia. We look forward to continued growth in partnership with the tremendous potential of the Russian economic and domestic business community."

Dow is already working on a second production facility in Russia. Dow and Izolan recently announced the formation of a joint venture company (Dow Izolan) that will provide customer-tailored, polyurethane systems products to a growing customer base. The joint venture will employ more than 100 staff and plans to construct a large, state-of-the-art production plant in the Vladimir area within the next two years.

January 29, 2007 Dow

Dow to Expand MDI Production in North America

The Dow Chemical Company ("Dow") announced today that it plans to expand production at its Freeport, Texas, MDI facility by 50 percent over the next 36 months.  In September 2006, Dow also announced plans to expand MDI production at its Estarreja, Portugal, site.  These two projects will significantly increase Dow's global MDI capacity and, in effect, support the future growth plans of Dow's performance businesses, which include Dow Polyurethanes.  A strong platform for developing a range of performance products and solutions furthers Dow's strategic portfolio shift to performance businesses.

"Demand for MDI has been growing steadily, and expanding our production capability will allow us to more effectively address the changing market needs," said Pat Dawson, business vice president, Dow Polyurethanes.  "With today's announcement, our North American customers will have the comfort of knowing that we are well positioned to reliably meet their growing supply requirements both now and in the future."

The Freeport MDI plant came on stream in 2005, and its original design blueprint provided for the possibility of expansion.  The expansion will be executed in two stages, with the first half of increased capacity expected to be available in early 2008.  When completed, the increase will account for an additional 250 million pounds of name-plate capacity per year of MDI manufactured at the Freeport site.

"The Freeport site is a world-class MDI facility with which Dow underscored its commitment to the polyurethanes industry and the rigid foam market," continued Dawson.  "The strong and steadily growing market merits further investment at this production site, and we have the capability to execute the expansion quickly and efficiently.  We are very excited to bring this added capacity to our polyurethanes customers and re-affirm our leading supplier position in North America."   
 
MDI (diphenylmethane diisocyanate) is a major raw material used in the production of rigid polyurethane foam and polyurethane elastomers.  Global market is estimated at 8 billion pounds; demand for MDI is currently growing at 6 percent to 7 percent annually, and that is expected to continue.  Overall global demand is particularly strong in end-use markets such as home, commercial and industrial foam insulation, as well as refrigeration, appliances, and coatings, adhesives, sealants and elastomers..

Dow currently produces and distills MDI at the facilities in Freeport and La Porte, Texas; Yeosu, South Korea; Yokkaichi/Kinu Ura, Japan; Stade, Germany; Delfzijl, The Netherlands, and Estarreja, Portugal.

March 26, 2007 Dow

Dow Announces Increased Global PO and PG Capacity-

Dow announced today that is has increased its total global nameplate production capacity for propylene oxide (PO) to more than 1,900 kilotons per annum (KTA) and total global production capacity for propylene glycol (PG) to 705 KTA. The additional capacities are the result of expansions in PO and PG production at the Stade, Germany facility, as well as low-capital cost expansions implemented at Dow's other PG plants.  Upon completion, in 2009, expansions at Stade, Germany will make it the world's largest PG facility, with a capacity to produce 270 KTA.

"Demand for PO and PG continues to rise globally as demand for end-use applications increases,  resulting in tight balances in the global industry," said Mady Bricco, global product director, Propylene Oxide and Propylene Glycols. "To meet rising demand, we will expand our PG production at Stade through two expansion projects and have optimized operations at our other facilities, through Six Sigma, technology enhancements, process automation and other improvements. We are pleased that we were able to identify these low-capital solutions to meet our customers' demands and support the growth of downstream businesses."

The global 2007 capacity numbers represent an increase of 140 KTA of PG and an increase of 40 KTA in PO.  Individual annual nameplate PG plant capacities (in KTA) are as follows:

Effective January 2007, Dow also increased PO production at Stade to 630 KTA, an increase from 590 KTA.
"These increases to the output of our PG facilities will add additional maneuverability to Dow's ability to manage peak demand throughout the year" said Bricco.

The increase of PG capacity at Stade is being implemented through two projects.  The first expansion project, which was completed in 2007, increased PG capacity at the facility from its current 190 KTA to 225 KTA. The second project, which is planned for completion in 2009, will enable another 45 KTA of PG output from the plant.  

March 26, 2007　Dow

Dow Epoxy Advances Glycerine-To-Epichlorohydrin and Liquid Epoxy Resins Projects by Choosing Shanghai Site
　Innovative Technology Provides Significant Environmental & Cost Advantages

Dow Epoxy, a business group of The Dow Chemical Company and a leading global supplier of epoxy resins and related feedstock products, today announced Shanghai Chemical Industry Park (SCIP) as the selected site for its world-scale 150,000-MTPA glycerine-to-epichlorohydrin (GTE) plant and 100,000-MTPA liquid epoxy resins (LER) plant.  Both plants are slated to start up in the 2009-2010 timeframe.

Today's announcement follows the signing of a Letter of Intent (LOI) by Dow Epoxy with SCIP, and an additional LOI with Shanghai Chlor-Alkali Chemical Co., Ltd. (SCAC) and its subsidiary Shanghai Tianyuan Group Huasheng Chemical Co., Ltd. (TYHSC 上海天原華勝化工) for the supply of critical raw materials for both the GTE and LER plants. SCIP is located in Caojing on the north coast of Hangzhou Bay, approximately 50 kilometers (31 miles) from Shanghai city, China.

"The selection of site and raw material partnerships marks a key milestone toward starting up our GTE and LER plants in China by 2009-2010.  The new plants will provide the in-market capabilities required to accelerate our growth and the growth of our customers," says Patrick Ho, business group president, Dow Epoxy & Specialty Chemicals. "SCIP is a well-established industry park with world-class management and integration capability and SCAC/TYHSC are strong and reputable companies.  We are very pleased to have SCIP and SCAC/TYHSC as our new partners."

The announcement directly underscores Dow's growth strategy, and marks another major step forward in the Company's quest for sustainable chemistries.  The world-scale GTE facility will be the first to use Dow's innovative and proprietary GTE technology, which uses a renewable resource - glycerine from bio-diesel - to produce epichlorohydrin.  At the cutting edge of innovation, this breakthrough technology provides significant cost and environmental advantages versus the conventional process technologies. In 2006 Dow launched a stand alone, full-process GTE demonstration unit at its Stade site in Germany.

Dow Epoxy will be able to realize significant economic and environmental benefits by locating at SCIP.   "It will also enhance the sustainability of our operations by more effectively using and recycling valuable raw materials and resources in the product value chain of SCIP," says Martin Sonntag, business director for Liquid Resins and Intermediates, Dow Epoxy.
 
Dow Epoxy first announced its plan to build the GTE and LER plants as part of its investment plan to support rapid growth in China and the broader Asia Pacific region in August 2006.

About Dow Epoxy
Dow Epoxy is one of the world's largest producers of epoxy resins and intermediates, with strong positions in a number of major applications, including coatings, electrical laminates and civil engineering. Three of the company's nine epoxy plants are in the Asia Pacific region, including a 41,000-MTPA facility in Zhangjiagang, China; a 40,000-MTPA facility in Kinu Ura, Japan; and a 30,000-MTPA facility in Gumi, South Korea. Dow Epoxy is also the global market leader in epichlorohydrin, with more than one-third of global capacity share and manufacturing facilities in all major regions. More information about Dow Epoxy is available at www.dowepoxy.com and www.epoxyavenue.com.

About The Dow Chemical Company

Dow is a diversified chemical company that harnesses the power of innovation, science and technology to constantly improve what is essential to human progress. The Company offers a broad range of products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $49 billion and employs 43,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

March 27, 2007 polymer-age.co.uk

Dow invests more in European polyurethanes
http://www.polymer-age.co.uk/news.htm#200703271

Dow Chemical is planning to invest at two of its polyurethanes chemicals plants in Europe over the next two years. The company plans to increase capacity at its polyols plant in Terneuzen, the Netherlands, by 180,000 tonnes, and at its propylene glycol facility in Stade, Germany, by 45,000 tonnes over the 35,000 tonnes it added earlier this year.
Dow has recent and current expansions in Europe with its joint venture with BASF to build a hydrogen peroxide-to-propylene oxide facility at Antwerp, Belgium, for 2008 start up and the completion of a 40,000 tonnes expansion of its propylene oxide capacity at Stade in January of this year, bringing its total PO capacity at the plant to 630,000 tonnes. PO is a key raw material used in the production of both propylene glycol and polyols.
According to Dow the European propylene glycol industry is growing at the rate of 3 per cent per year on average, driven primarily by strong demand from wide-ranging end-use applications, including unsaturated polyester resins. Growth for polyols is expected at the rate of 5 to 6 per cent per year on average, driven by strong demand in the automotive, construction and home furnishing industries.

2007/4/10 Dow

Dow and Chevron Phillips Chemical Announce Plans to Form Styrenics Joint Venture in the Americas

The Dow Chemical Company (Dow) and Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) have signed a non-binding Memorandum of Understanding relating to the formation of a joint venture involving assets from their polystyrene and styrene monomer businesses in the Americas. The new venture is subject to customary regulatory review, due diligence, completion of definitive agreements, and corporate and other approvals. Upon the necessary approvals, the parties would expect the transaction to close in the second half of 2007.

“Today’s announcement marks another key milestone in Dow’s strategic agenda and underscores our commitment to change the Company’s long-term earnings profile,” said Andrew Liveris, Dow chairman and chief executive officer. “This joint venture is what our Asset Light strategy is all about: joining forces with a complementary partner who brings value to Dow through its excellent feedstock position and with whom we can build a stronger regional presence, reduce costs, enhance innovation and deliver a superior service to our customers.”

The 50-50 joint venture is expected to establish the competitive model for an integrated producer of polystyrene in the Americas.

“This joint venture is an important step for our company in recognizing the changing competitive landscape for styrenics in the Americas,” said Ray Wilcox, president and chief executive officer of Chevron Phillips Chemical. “This is a very competitive business and we look forward to achieving the synergies of this venture so as to expand our opportunities in the Americas and more efficiently meet customer demand.”

The potential joint venture is expected to realize significant manufacturing, commercial and feedstock synergies between Dow and Chevron Phillips Chemical.

“We complement each other well and together we’re creating a sustainable company in the Americas,” said Mike Gambrell, Dow Executive Vice President. “Both companies bring a wealth of commercial and manufacturing experience to the venture.”

“Partnering in this way enables both Chevron Phillips Chemical and Dow to more efficiently build upon our core competencies,” said Mike Parker, senior vice president of aromatics and styrenics for Chevron Phillips Chemical. “We also believe it improves our customer coverage and enhances logistics to better serve them.”

Subject to due diligence, the parties intend to contribute the following assets to the venture. Dow intends to contribute: a styrene monomer plant (Camacari, Brazil) and six polystyrene plants (Gales Ferry, Connecticut; Ironton, Ohio; Joliet, Illinois; Torrance, California; Cartagena, Colombia; and Guaruja, Brazil). Chevron Phillips Chemical intends to contribute a styrene monomer plant (St. James, Louisiana) and a polystyrene plant (Marietta, Ohio).

About Dow
Dow is a diversified chemical company that harnesses the power of innovation, science and technology to constantly improve what is essential to human progress. The Company offers a broad range of products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $49 billion and employs 43,000 people worldwide. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

About Chevron Phillips Chemical
With approximately $7 billion in assets and over $12 billion in revenues in 2006, Chevron Phillips Chemical Company LLC with its affiliates is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping and proprietary plastics. The company produces chemicals that are essential to manufacturing over 70,000 consumer and industrial products. Headquartered in The Woodlands, Texas, the company has more than 5,000 employees worldwide. For more information about Chevron Phillips Chemical, go to www.cpchem.com.

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Platts 2007/4/11

Three Dow plants excluded from joint venture with Chevron

Three Dow Chemicals plants were not included in the 50-50 joint venture agreement with Chevron Phillips Chemical Company involving polystyrene and styrene monomer assets in the Americas.

Dow plants excluded from the agreement are in Pevley, Missouri; Freeport, Texas; and Midland, Michigan.

The Pevley plant is used predominately to make styrofoam feedstocks, according to a company source. "Since Dow is strong in the styrofoam business, we plan to manage it," the source said.

The plant in Freeport produces derivatives for styrofoam, latex and ABS. Dow plans on keeping that site, the source added, so that it can maintain an internal supply of styrene.

The operation in Midland is a mega site, and it is being held by Dow for business reasons, the source explained.

"Through the joint venture, we can produce a solid breadth of product and create supply chain synergies," the source summarized. "We'll also be able to fight interpolymer and intermaterial substitution."

Included in the agreement were Dow's styrene monomer plant at Camaraci, Brazil, and six of the company's polystyrene plants located at Gales Ferry, Connecticut; Ironton, Ohio; Joliet, Illinois; Torrance, California; Cartagena, Colombia; and Guaruja, Brazil. In addition, Chevron Phillips Chemical intends to contribute its styrene monomer plant at St. James, Louisiana, and its polystyrene plant at Marietta, Ohio.

After approval and regulatory reviews, the JV transaction is expected to be completed by the second half of this year, according to reports.