logo

Dow to retain chlorine links to polyurethanes after spinoff

By: URETHANES TECHNOLOGY INTERNATIONAL

December 6, 2013

MIDLAND, MICH. — Dow Chemical Corp. will maintain integration benefits between its polyurethane and chlorine business, which is to be carved out of Dow, according to Glenn Wright, business president, Dow Polyurethanes, Systems.

Chlorine is an important precursor chemical used to make phosgene, which is used to produce isocyanates.

“In North America maintaining our integration benefit will be a critical priority,” Wright said in a statement. “We anticipate there will be multiple supply and purchase arrangements between these units and Dow, given the high degree of integration.”

Speaking at an investor conference call, Andrew Liveris, president, chairman & CEO, Dow Chemical, said: “Our market choices have dramatically changed our chlorine integration needs, and we are aligning our integration needs for our strategic, downstream franchises such as polyurethanes.

“While our polyurethanes and AgroSciences franchises have experienced positive growth at 7 percent CAGR (compound annual growth rate) since 2006, their chlorine footprint has remained flat due new technology, asset optimization and new product,” Liveris said.

“Dow is committed to its current polyurethane business and optimistic about its ability to generate return on capital,” Wright said.

Dow announced the plan to separate its chlorine business on Dec. 2.