Dow's Liveris cagey on PE plans

By Frank Esposito
Senior Staff Reporter

Published: December 4, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers

NEW YORK (Dec. 4, 12:25 p.m. ET) — Challenges facing Dow Chemical Co. and other global plastics and chemicals firms were on full display at a media event hosted by the firm on Dec. 3 in New York.

At the event — which preceded Dow’s 2012 Investor Forum — Dow Chairman and CEO Andrew Liveris professed optimism about the North American economy, while at the same time confirming that the firm would divest businesses with $1 billion in annual revenue over the next 12 months.

Liveris offered no details of those divestments. In late October, Midland, Mich.-based Dow announced it would close about 20 plants worldwide and eliminate 2,400 jobs. Those cuts will include plastics materials plants in Belgium and Japan.

That announcement came only six months after Dow confirmed it would cut 900 jobs worldwide by closing four plants that made expanded polystyrene foam and polyurethane feedstocks.

Like many global firms, Dow is struggling with a weak European economy and slowing growth in Asia. But Liveris singled out the U.S. market as “a bright spot” for Dow.

The North American automotive and construction markets “both should be up” in 2013, he said, adding that the U.S. “is moving into territory that could lead the world out of a two to two and a half percent GDP growth level.”

Regarding Dow’s plans to build a massive plant making plastic feedstock ethylene in Freeport, Texas, Liveris said that the project “is moving ahead and is going through the permitting process.”

He stopped short, however, at saying if the project — set to open in 2017 — would include new polyethylene resin capacity.

“We’re looking at offers and deciding what makes the best sense,” Liveris said. “We could have large contracts to base-load someone else, but we’re not sure if that’s going to be for commodity polyethylene or not.”

Through the first nine months of 2012, Dow’s sales fell almost 7 percent to just under $43 billion. The firm’s profit slid almost 32 percent to less than $1.9 billion. Dow generated about half of its nine-month sales from plastics-related businesses.


Comments

Dow's Liveris cagey on PE plans

By Frank Esposito
Senior Staff Reporter

Published: December 4, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Trexel charges patent infringement against Taiwan company

October 20, 2014 3:25 pm ET

Trexel Inc., the supplier of the MuCell microcellular foaming technology, is accusing a Taiwanese company, Chuan Lih Fa Machinery Works, of violating ...    More

Materials firm realigns business divisions

October 20, 2014 1:23 pm ET

Trinseo S.A., formerly known as Styron L.L.C., is realigning its business divisions, creating two new business groups — Performance Materials...    More

Image

Humanoid robot provides inspection service with a smile

October 17, 2014 6:00 am ET

Everyone knows robots can improve production and quality. But no one says they can't show a little personality while they're working.    More

Image

Hasco gets into augmented reality

October 17, 2014 6:00 am ET

Mold makers may be used to seeing cores and pins on the exhibition stand of a supplier — but not augmented reality that looks like it comes...    More

Image

Corbion Purac collaboration taking bioplastics into even more uses

October 17, 2014 6:00 am ET

Corbion Purac NV's collaboration with Taiwan-headquartered compounder Supla Co. Ltd. and Taiwan electronics producer Kuender & Co. is paying dividends...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events