INTERVIEW-Dow Chemical under less pressure to sell agro unit

* Dow less pressured to sell agroscience unit than in March

* $6 bln bond issue, other sales means may even keep unit

* Demand stabilising, up in some products, emerging markets

* Sees 10,000 job cuts after Rohm & Haas buy by end 2010

By Shrikesh Laxmidas

ESTARREJA, Portugal, July 9 (Reuters) - Dow Chemical Co (DOW.N) is under less pressure to sell its agrosciences unit than three months ago and demand for the company's products has stabilised since then, Dow's European head Marcus Wildi said.

Wildi said a recent $6 billion bond issue, equity issuance and divestments meant the company may even keep its agrosciences unit, despite being under pressure to sell assets after its $15 billion dollar acquisition of Rohm and Haas in April.

"We can look at it from a divestment point of view, it could be an IPO, a joint venture or we could keep 100 percent. There's really no decision made on that front," Wildi told Reuters.

But he said the immediate sale of Rohm and Haas' Morton Salt business for $1.68 billion and the subsequent $725 million dollar sale of a 45 percent stake in European refinery business TRN meant Dow is ahead of schedule in its plan for $4 billion worth of divestments by the end of 2009.

Wildi said market conditions improved too.

"Compared to the fourth-quarter, we see demand has stabilised and maybe increased (in the second quarter). The packaging products have actually grown back, our polyethelene business in Europe is sold out. The electronics segment has improved," he said a visit to a plant in Portugal in which Dow has a stake.

Demand in emerging markets has also recovered, with Dow's global reach helping boost sales.

"(Demand in) China has come back compared to the fourth quarter, stronger than we expected, and that's due to the Chinese government putting significant amount (into) stimulus packages. And we're very pleased with Brazil too".

Wildi added the financial and sales strategies have been accompanied by a cost reduction operation. He said Dow's forecast-beating first-quarter results came mainly from restructuring efforts, decreasing inventories and cutting capital budgets.

In late April, Dow announced it had completed half of its plan to cut 5,000 jobs globally, but Wildi said that number could now be unrealistic after the Rohm and Haas acquisition.

"We are well on track to meet the 5,000 cut target, but when you add the restructuring plan announced by Rohm and Haas too, you're talking about a 10,000 cut by the end of 2010," he said.

He added that the total synergies of the acquisition will reach over $2 billion by the end of 2010 and "certainly half of that value by the end of this year".

(Editing by Axel Bugge and David Holmes)

((Lisbon Editorial; (351) 213-509-203; Reuters Messaging: chico.laxmidas@thomsonreuters.net)) Keywords: DOWCHEMICAL/

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