domain-b.com 2007/12/5
Dow Chemical's Indian R&D centre plan faces social boycott
Dow Chemical Co, the new owner of the infamous Union Carbide, is
planning a comeback by setting up a research and development
centre in India, but is facing stiff opposition from social
groups and prospective employees.
Dow has offered to invest $100 million (about Rs400 crore) in a global
R&D centre in India. The company has also signed a
memorandum of understanding with the Maharashtra government,
reports said.
Dow is planning to shut a number of plants in the US and shift
production to India and other low-cost locations, to cut costs.
Union Carbide, that caused the death of over 5,000 and left
several thousands permanently disabled in the Bhopal gas tragedy, was declared an absconder by a
court in Bhopal in 1991. The company was taken over by Dow
Chemical in 2001. Dow has refused to produce Union Carbide in
court, even while providing an avenue for Carbide to continue
profiting from sales in the Indian market without threat of
arrest.
With the help of industry leaders like Ratan Tata and Mukesh
Ambani, Dow has managed to win the favour of the Prime Minister's
Office which has promised to write off Dow's liabilities in
Bhopal if the company invests heavily in India.
The company, however, is now facing social boycott in the
country.
Young engineers of the Indian Institutes of Technology (IITs) are
rejecting lucrative jobs at Dow Chemical on moral grounds. They
are writing to their IITs to remove its name from the
recruiters'''' list, reports quoting NGO sources said.
IIT Madras and IIT Bombay had cancelled their prospective
engagements with Dow. Now students from IIT Kanpur have followed
suit, on the 23rd anniversary of Bhopal gas disaster, the report
said.
Meanwhile, the Central Bureau of Investigation has recently
raided Dow''''s offices across the country for allegedly bribing
officials to the tune of millions in order to get licences to
sell their products here.
The US Securities Exchange Commission had also fined Dow for
financial irregularities. In February 2007, Dow Chemical was
fined $300,000 (about Rs1.2 crore) by the SEC for having paid
Rs80 lakh as bribe to Indian officials to licence Dursban, a
pesticide that was banned in the US because of its harmful
effects on children''''s brains.
The company continues to market this pesticide in India with
impunity.
Meanwhile, in Chennai, more than 150 children in their teens
gathered at the central lobby of the Citi Center mall to demand
the
eviction of Dow Chemical from the premises.
Dow Chemical, the new owner of Union Carbide, has an office in
the 6th floor of the mall in the Mylapore area of the city.
The children also threatened to boycott the "unethical"
mall and persuade their friends to do the same if Dow was allowed
to continue using the mall premises.
Dow, which has been affected by soaring hydrocarbon feedstock and
energy costs, has been attempting to improve its earnings through
a series of joint ventures and by expanding its more profitable
specialty businesses.
Midland, Michigan-based Dow has been under pressure from
investors to announce a transformational deal that would reduce
its exposure to the more cyclical and low-margin commodity
chemicals business.
Dow said it would exit the automotive sealers business in North
America, Asia Pacific and Latin America within nine to 18 months
and explore strategic options for its Europe business.
It will also shut down its manufacturing facility in Lauterbourg,
France. The company will also write down an investment in its
Petromont and Co polyethylene joint venture in Canada.
Polyethylene is a very common plastic used for bags.
Dow will also idle a styrene plant in Camacari, Brazil, from
January 1, amid tougher competition and weak industry
fundamentals.
Nov 10, 2007
economictimes.indiatimes.com
Dow India plans $100
mn R&D centre
Dow India will invest $100 million (about Rs 400 crore) in a
global R&D centre at Chakan. The centre, located on a 100
acre plot, should be operational next year and by 2010, is
expected to employ 500 researchers. Dow India has signed a
memorandum of understanding with the Maharashtra government. 
A statement released by the multinational noted that initial
project related activities have begun at the location and 125
researchers are already working, out of rented premises. The
Dow Chemical Company has been present in India for over 50
years now.
Vipul Shah, CEO, Dow Chemical International noted that this
centre will be capable of bringing new products to market,
from concept to commercialisation.
The integrated R&D centre will serve multiple clients and
geographies in areas of water, personal care, paints and
coatings. It will also partner with government laboratories
and educational institutions, funding research to generate
intellectual property
April 16, 2008 Dow
Dow Europe and Gujarat Alkalies and Chemicals Ltd. Sign Joint
Venture Agreement
Dow Commits Rs.75 Lakh to Provide Clean Drinking Water to Local
Communities
Dow Europe GmbH (Dow), a wholly owned subsidiary of The Dow
Chemical Company, and Gujarat Alkalies and Chemicals Ltd
(GACL), a
company promoted by Government of Gujarat, announced today the
signing of a Joint Venture Agreement (JVA) for the construction,
operation and ownership of a 200 kilotons per year
chloromethanes manufacturing facility in Gujarat, India. The agreement allows Dow and GACL
to complete a study, begin work on definitive agreements and work
towards financial closure which is estimated to be completed by
late 2008. Estimated to be operational in 2011, the new
production unit would be located at Dahej, Gujarat on the western
coast of India. The parties will form a 50:50 joint
venture company to
manage local permitting processes.
“Being
here in India, and understanding the growth prospects for both
our companies, as well as this region, is very exciting. This is
yet another example of our commitment to meeting the needs of our
customers through establishing joint ventures with strategic
partners, using an asset-light investment approach,”
said Michael R.
Gambrell, executive vice president, Basic Chemicals and Plastics
for Dow. “As GACL - India’s largest chlor-alkali producer,
and Dow - the world’s largest producer
of chemicals and plastics and the world's largest supplier of
chlorinated organic products and services, form a joint venture company and
enter into negotiation of the definitive agreements for this
project, we do so against the all-important backdrop of
sustainability.”
“The new
investment through this Joint Venture between Gujarat Alkalies
and Chemicals Ltd. (GACL) and Dow Europe GmbH is a significant
development. This will give a push to the down stream users in
the pharmaceuticals, paints and grease removal, refrigerant and
solvent sector by making raw materials available at more
competitive rates and bringing valuable Forex to the country,”
said Shri
Saurabhbhai Patel, Minister Of State for Energy &
Petrochemicals, Government Of Gujarat.
“We
are happy to be associated with Dow to work on this project,
which will help the country to achieve its commitments as a part
of the Montreal Protocol, to which India is a signatory,”
said Dr. Manjula
Subramaniam, Chairperson, GACL and Chief Secretary, the
Government of Gujarat. She further informed that the association
of GACL with Dow would result in various business avenues for the
State. “Dow’s best-in-class process technology
to produce chloromethanes will help to minimize production of
carbon tetrachloride (CTC). The JV will also be able to convert
the total CTC production, not only from this facility, but CTC
produced in India, into a valuable product, a major breakthrough
for India’s chemical industry.”
“It also gives me
pleasure to announce today that, in keeping with Dow’s 2015 Sustainability Goal to
Contribute to Community Success, we are contributing Rs. 75 Lakh
to purchase the equipment to provide clean drinking water to over
10,000 residents of three neighboring villages of Jolwa, Suva and
Vadadla by using Dow technology. We plan to offer this facility
to other neighboring villages in the months to come,”
Gambrell continued.
Chloromethanes are used as an intermediate in the production of
fluorocarbons and fluoropolymers, and as a solvent in
pharmaceutical manufacturing, metal cleaning/degreasing, and
other chemical processing applications. GACL will supply
feedstock and power and lease land to the joint venture, while
Dow will license its production technology and marketing and
sales expertise. The joint venture will market its products
primarily to countries who are members of the South Asian
Association for Regional Cooperation (SAARC).
About Dow Europe GmbH
Dow Europe GmbH is a wholly owned subsidiary of The Dow Chemical
Company. With annual sales of $54 billion and 46,000 employees
worldwide, Dow is a diversified chemical company that combines
the power of science and technology with the "Human Element”
to constantly
improve what is essential to human progress. The Company delivers
a broad range of products and services to customers in around 160
countries, connecting chemistry and innovation with the
principles of sustainability to help provide everything from
fresh water, food and pharmaceuticals to paints, packaging and
personal care products. References to “Dow” or the “Company”
mean The Dow
Chemical Company and / or its separate but consolidated
subsidiaries unless otherwise expressly noted. More information
about Dow can be found at www.dow.com.
About GACL
Gujarat Alkalies and Chemicals Limited (GACL) was incorporated on
29th March, 1973 in the State of Gujarat by Gujarat Industrial
Investment Corporation Limited (GIIC), a wholly owned company of
Govt. of Gujarat, as a Core Promoter. GACL has two units located
at Vadodara (Baroda) and Dahej , both in the State of Gujarat. It
has integrated manufacturing facilities for Caustic Soda,
Chlorine, Hydrogen Gas, Hydrochloric Acid, Chloromethanes,
Hydrogen Peroxide, Phosphoric Acid, Potassium Hydroxide,
Potassium Carbonate, Sodium Cyanide, Sodium Ferrocyanide,
Aluminium Chloride, Poly Aluminium Chloride, CPW etc. Its
manufacturing capacity for caustic soda is 412500 tonnes per
annum and is the largest in India. The Dahej unit also has 90 MW
Captive Power Plant (CPP) for regular and economical power
supply. More information about GACL can be found at www.gacl.com.