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July 30, 2001 02:00 AM

Dow adds Celotex line to business

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    Dow Chemical Co. will boost its North American building insulation business with the acquisition of the rigid foam business of Tampa, Fla.-based Celotex Corp.

    Terms of the deal were not disclosed. It is expected to close in 30 days.

    Dow is adding Celotex's polyisocyanurate line to its own Styrofoam-brand insulation, said Barry Chatland, Dow's global business communications director. Dow is in the urethane-based insulation business already, but in a minute way: The company manufactures Trymer brand of industrial pipe insulation.

    The acquisition vastly expands Dow's foam insulation technology, said John Somerville, commercial director of Dow's North American Building Materials Fabricated Products division.

    ``Polyisocyanurate is a competitive but complementary board, and they sell basically in the same applications,'' Chatland said. ``This is going to truly help us. Our sellers now have a product for every sheathing.''

    Dow plans to increase its presence in Canada especially, Chatland said.

    ``Celotex did not sell in Canada,'' Chatland said in a July 25 telephone interview. ``We see this as a great growth opportunity.''

    The sale means Midland, Mich.-based Dow will add five manufacturing facilities: Charleston, Ill.; Elizabethtown, Ky.; Pennsauken, N.J.; Texarkana, Ark.; and Tracy, Calif. Dow maintains 12 plants in North America: three in Canada and nine in the United States.

    ``We have no plans to close any of the plants,'' Chatland said. ``We fully intend to increase operating capacities. There are no Celotex plants that are side by side with our plants, but some within 40 miles to 50 miles. That makes it ideal in that they could be mentored up.''

    Celotex brands include Tuff-R, Super Tuff-R and Thermax Insulating Sheathing. Celotex Corp. will retain the Celotex name.

    Although he could not disclose Celotex's 2000 sales, Chatland said Styrofoam is ``a major part'' of Dow's Fabricated Products business, which had $1 billion in sales.

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