Profile: Dow Chemical Co (DOW.N)
7 Mar 2014
The Dow Chemical Company, incorporated on June 11, 1947, combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the problems, such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Its diversified portfolio of specialty chemicals, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. The Company conducts its worldwide operations through global businesses, which are reported in six operating segments: Electronic and Functional Materials, Coatings and Infrastructure Solutions, Agricultural Sciences, Performance Materials, Performance Plastics, and Feedstocks and Energy. In December 2013, W. R. Grace & Co announced that it has completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company.
In 2012, 36 % of the Company’s sales were to customers in North America; 34 % were in Europe, Middle East and Africa (EMEA); while the remaining 30 % were to customers in Asia Pacific and Latin America. In March 2012, the Company’s subsidiary Dow AgroSciences LLC, divested its European Dithane fungicide business to Indofil Industries Ltd. In October 2012, the Company’s subsidiary, Dow AgroSciences LLC acquired Cal/West Seeds based in Woodland, Calif. In February 2013, PMC Group N.A., Inc. acquired the global methyl tin stabilizers and solid lubricants business of the Company.
Electronic and Functional Materials
Electronic and Functional Materials develops and markets customized materials using advanced technology and chemistries for specialty applications ranging from semiconductors and liquid crystal displays to microbial protection for the oil and gas industry and cellulosics for pharmaceutical drug formulation and healthier foods. These businesses serve the needs of market segments as diverse as: electronics and entertainment; healthcare and medical; energy; water; and consumer and home goods. The segment's commitment to continuous innovation and rapid new product development enable it to maximize opportunities in emerging geographies and high-growth industries.
Dow Electronic Materials is a global supplier of enabling materials for applications such as consumer electronic devices, flat-panel displays and telecommunications. The business produces materials for chemical mechanical planarization (CMP); materials used in the production of electronic displays, including films and filters; metalorganic precursors for light-emitting diodes (LEDs); organic light-emitting diode (OLED) materials; products and technologies that drive semiconductor design; materials used in the fabrication of printed circuit boards; and integrated metallization processes for metal finishing and decorative applications.
The Functional Materials portfolio of businesses creates performance-enhancing solutions that enable customers to differentiate their products in the global pharmaceutical, food, water, energy and home and personal care markets. This group also provides key materials for industrial uses around the world.
Its technology includes CMP consumables, photolithography materials, Interconnect process chemistries, Display films and filters, OLED materials, Advanced chip packaging materials, metalorganic precursors, optical and ceramic materials.
The Company competes with Ashland, BASF, JSR Micro, Lonza and Shin-Etsu Chemical.
Coatings and Infrastructure Solutions
Coatings and Infrastructure Solutions is comprised of a portfolio of businesses utilizing advanced technology to deliver products ranging from low volatile organic compound (VOC) coatings to building insulations and adhesives to solar and water technologies. With unmatched research and development (R&D) capabilities, a broad range of chemistries, geographic reach and channels to market, this segment is well positioned to capitalize on market trends. The segment has broad geographic reach with sales in nearly 140 countries and R&D and manufacturing facilities located in key geographic areas. The Dow Building and Construction business is comprised of three global businesses - Dow Building Solutions, Dow Construction Chemicals and Dow Solar Solutions - that offer lines of insulation, housewrap, sealant and adhesive products and systems, as well as construction chemical solutions and building-integrated photovoltaics. Through its sales support, customer service and technical , Dow Building Solutions provides meaningful solutions for improving the energy efficiency in homes and buildings, while also addressing the industry's emerging needs and demands. Dow Construction Chemicals provides solutions for increased durability, greater water resistance and lower systems costs. As insulation solutions, the business' products help curb escalating utility bills, reduce a building's carbon footprint and provide a more comfortable indoor environment. Dow Solar Solutions is growing solar adoption with DOW POWERHOUSE Solar Shingles, a roofing product that is also a solar collector to help solve global energy challenges.
The Dow Coating Materials business manufactures and delivers solutions that leverage technologically advanced product offerings for architectural paint and coatings, as well as, industrial coatings applications, including packaging, pipelines, wood, automotive, marine, maintenance and protective industries. The business is in the conversion of solvent to water-based technologies, which enable customers to offer more environmentally friendly products, including low VOC paints and other sustainable coatings. Dow Water and Process Solutions is a provider of purification and separation technologies. The business provides the critical technology, including reverse osmosis membranes and ion exchange resins, to help customers with a broad array of needs such as reusing waste water streams, making fresh drinking water from sea water, creating a closed loop water system for oil field operations, making controlled release drugs possible, and removing impurities in dairy processing. A primary goal of the business is to drive down the cost and energy requirements to treat water.
Its products include AQUASET acrylic thermosetting resins, DOW latex powders, DOW POWERHOUSE solar shingles, FROTH-PAK foam insulation and sealants, GREAT STUFF insulating foam sealants and adhesives, RHOPLEX and PRIMAL acrylic polymer emulsions, STYROFOAM brand insulation products, WALOCEL cellulose ethers , AVANSE acrylic resin, EVOQUE pre-composite polymer, FASTRACK technology, OUDRA solution series, PROSPERSE polymers, ROSHIELD acrylic resin, DOW ADSORBSIA selective media, DOW EDI modules, DOWEX and AMBERJET ion exchange resins, DOWEX OPTIPORE polymeric adsorbent resins, DOW FILMTEC reverse osmosis and nanofiltration elements, TEQUATIC PLUS fine particle filter AMBERLYST polymeric catalysts, Acrylates, methacrylates and vinyl acetate monomers.
The Company competes with Arkema, BASF, Hydranautics, Lanxess and Owens-Corning.
The Agricultural Sciences segment is a provider of crop protection and plant biotechnology products, urban pest management solutions and healthy oils. The business invents, develops, manufactures and markets products for use in agriculture, industrial and commercial pest management, and food service. The segment has broad global reach with sales in more than 130 countries and R&D and manufacturing facilities located in all geographic areas. Growth is achieved through the development of new products and technologies, segmentation of market offerings with brands, diverse channels to market, cost competitive positions, strategic bolt-on acquisitions, and commercial and R&D collaborations. The Company is committed to the development of new biological and crop protection products and technologies.
Its brands include LORSBAN; RADIANT; SENTRICON; TELONE; TRACER, DITHANE, BROADWAY; CLINCHER; FENCER; GARLON; LONTREL; MILESTONE; PRIMUS; STARANE; SURESTART; TORDON, AGROMEN seeds; BRODBECK seeds; DAIRYLAND SEED; Grand Valley Hybrids; HYLAND seeds; MYCOGEN seeds; NEXERA; PFISTER seeds; PHYTOGEN; PRAIRIE BRAND SEEDS; Renze Seeds; TRIUMPH seed, HARVISTA; N-SERVE, and RIPELOCK.
The Company competes with BASF, Bayer, E. I. DuPont de Nemours, Monsanto and Syngenta.
The Performance Materials segment is comprised of eleven market-focused, technology-driven, customer-centric businesses that are advantaged through integration and driven by technology and solutions. Products produced by this segment are back-integrated into feedstocks, supporting a low-cost manufacturing base and consistent, reliable supply. The Performance Materials segment is positioned for growth through diverse markets and product offerings. The segment has broad geographic reach with sales in over 140 countries and manufacturing facilities located in all geographic areas. Performance Materials has a diverse product line that serves customers in a number of industries, including automotive, consumer, construction, infrastructure, oil and gas, appliance and electronics. The Performance Materials segment markets its products primarily through the Company's sales force and also utilizes distributors worldwide.
The products include Chelants, ethanolamines, ethyleneamines, isopropanolamines, Chloroform, methyl chloride, methylene chloride, perchloroethylene, trichloroethylene, Acoustical foam, composites, elastic, structural adhesives, one-coat adhesives, Formulated epoxy , polyurethane systems, Demulsifiers, drilling and completion fluids, heat transfer fluids, perchloroethylene, rheology modifiers, scale inhibitors, shale inhibitors, specialty amine solvents, surfactants, water clarifiers, Additives for the processing and modification of thermoplastic, thermosetting plastic materials, Epoxy resins, hardeners, intermediates, Acetone derivatives, butyl glycol ethers, glycol ethers, low-VOC solvents, methyl isobutyl, Heat-transfer fluids, polyalkylene glycol, polyethylene glycol, surfactants, Polyether polyols, methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI), Propylene oxide (produced via the chlorohydrin process; also produced using hydrogen peroxide to propylene oxide manufacturing technology (1)), propylene glycol and synthetic glycerine
The Company competes with BASF, Bayer and Huntsman.
The Performance Plastics segment is a solution-oriented portfolio composed primarily of four businesses, Dow Elastomers, Dow Electrical and Telecommunications, Dow Hygiene and Medical and Dow Performance Packaging. The segment also includes Dow Polypropylene Licensing and Catalyst, which licenses the UNIPOL process for the production of polypropylene as well as catalyst systems. These businesses serve high-growth, high value sectors where Dow's world-class technology and rich innovation pipeline creates competitive advantages for customers and the entire value chain. These businesses have complimentary market reach, asset capabilities and technology platforms that provide the Company with immediate and long-term growth synergies. The segment has broad geographic reach with sales in more than 100 countries and manufacturing facilities located in all geographic areas. Market growth is expected to be driven by r shifts in population demographics, improving socioeconomic status in emerging geographies, consumer and brand owner demand for increased consumer convenience, efforts to reduce food waste, growth in telecommunications networks, specifically broadband and LTE networks, and global development of electrical transmission and distribution infrastructure and renewable energy applications.
The segment strategically locates its polyethylene production units near its hydrocarbon cracking facilities to enable back-integration into feedstocks. As a result, the segment sources ethylene from internally produced sources and propylene from both internal and external sources. In 2012, the Performance Plastics segment consumed 69 % of Dow's internal ethylene production.
Its products include Elastomers, plastomers, ethylene propylene diene monomer elastomers (EPDMs), Wire and cable insulation, semiconductive and jacketing compound solutions, bio-based plasticizers, Acrylics, polyethylene, low-density polyethylene, polyolefin emulsions, polyolefin plastomers, Linear low-density polethylene, low-density polyethylene and high-density polyethylene.
The Company competes with ExxonMobil, INEOS, LyondellBasell, Mitsui and SABIC.
Feedstocks and Energy
The Feedstocks and Energy segment is the global producer of ethylene, chlorine, caustic soda and purified ethylene oxide. This segment is also a purchaser and producer of propylene and one of the industrial energy producers. Combining technologies, unparalleled scale and integrated operations, Feedstocks and Energy supplies cost-advantaged building blocks to its performance and market driven businesses. The majority of Dow's advantaged internal feedstock supply is used to enable its downstream businesses. In 2012, 88% of ethylene, 97%of chlorine, 86%of propylene and 90 % of ethylene oxide produced internally by Dow were consumed by downstream derivatives. The Company strategically locates its downstream production units near its hydrocarbon cracking facilities to enable back-integration into feedstocks.
Dow's global scale and feedstock flexibility creates a cost-advantaged foundation for the Company's downstream, market-driven businesses. In North America, new shale gas opportunities - and the resulting increased supplies and stabilized raw material prices - have made the Company's ethane- and propane-based production more cost-competitive. The Company's U.S. and European hydrocarbon cracking facilities allow Dow to use different feedstocks in response to price conditions. The Company's recently announced U.S. Gulf Coast investments will strengthen ethylene and propylene integration and establish a platform for growth of Dow's downstream businesses.
The Company operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to produce a number of products that are sold as finished goods at various points in those processes. The two raw material streams that feed the integrated production of the Company’s finished goods are chlorine-based and hydrocarbon-based raw materials. Salt, natural brine and electricity are the base raw materials used in the production of chlor-alkali products and derivatives. The Company owns salt deposits in Louisiana and Texas; Alberta, Canada; Brazil; and Germany. The Company also produces a portion of its electricity needs in Louisiana and Texas; Alberta, Canada; and Germany.
The Company purchases hydrocarbon raw materials including ethane, propane, butane, naphtha and condensate as feedstocks. These raw materials are used in the production of both saleable products and energy. The Company also purchases certain monomers, primarily ethylene and propylene to supplement internal production. The Company purchases natural gas, mainly to generate electricity, and purchases electric power to supplement internal generation. Expenditures for hydrocarbon feedstocks and energy accounted for 37 % of the Company’s production costs and operating expenses for the year ended December 31, 2012. The Company purchases these raw materials on both short- and long-term contracts.
Dow Chemical Co
2030 DOW CENTER
MIDLAND MI 48674-2030
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