Dow Performance Chemicals: Stronger, Better, Global Integration of Union Carbide Products and Services Repositions Key Dow Business

The Dow Chemical Co. announced last August its full roster of products in its Performance Chemicals business group, reflecting the integration of Union Carbide products and services with existing Dow businesses. The integration will make Dow one of the largest specialty chemicals producers in the world.

"Clearly, the addition of Union Carbide to our performance chemicals portfolio has broadened not only our product offering around the globe, but also the technology and services we offer," says Andrew Liveris, business group president, Performance Chemicals. "Performance Chemicals includes more than 40 percent of the former Union Carbide businesses, more than doubling the size of the pre-merger Dow portfolio."

Performance Chemicals consists of seven global business units: Custom and Fine Chemicals, Emulsion Polymers, Industrial Chemicals, Oxide Derivatives, Specialty Polymers, UCAR Emulsion Systems, and Water Soluble Polymers. The business group has more than 7,000 people in over 100 sites around the world.

Small-Company Attributes, Big-Company Strengths

Liveris says the incorporation of Union Carbide products and services creates a business with small-company attributes and big-company strengths. While the new business has the rapid growth potential, flexibility and product turnaround of a small company, it still maintains the strengths of a company of Dow's size. "We have the financial capability to be the best in process technology, technical service and electronic commerce," Liveris says. "However, it's our ability to be global that makes us stand out. We have the global infrastructure to serve customers anywhere in the world."

Today, the Performance Chemicals business group generates more than $5 billion annually in revenue for Dow -- making it one of the company's largest business groups.

The goal of each business unit in Performance Chemicals is value growth, both through possible acquisitions and alliances, and through the identification of new market opportunities in new and current geographies. Dow's recent acquisition of Ascot Plc., a United Kingdom specialty chemical company, demonstrates the business' commitment to growth.

Liveris says. "Ascot is a perfect fit for our Custom and Fine Chemicals business, and demonstrates to our customers that we want to be the one source for all of their performance chemicals needs."

The management staff of Performance Chemicals was drawn from both Dow and Union Carbide. Dow supplied six leaders:

  • George Biltz, formerly president and CEO of ANGUS Chemical, which had been acquired by Dow, serves as global business vice president for Custom and Fine Chemicals;

  • Ted Cosse continues in his role as global business vice president for Emulsion Polymers;

  • Pat Dawson is the global business vice president for Oxide Derivatives;

  • Julie Fasone Holder is global business vice president for the Industrial Chemicals business unit;

  • Jim McIlvenny is the global business vice president for Specialty Polymers;

  • Jerry Doyle is the global business vice president for Water Soluble Polymers; and

  • Linda Koffenberger is the global business vice president for UCAR Emulsion Systems and was formerly with Union Carbide.

    "The Water Soluble Polymers and Specialty Polymers businesses will benefit tremendously from the integration of Union Carbide products," Liveris says. The Water Soluble Polymers business adds the AMERCHOL Corp. product line as well as POLYOX water-soluble resins and CELLOSIZE hydroxy ethylcellulose to its existing Dow line of METHOCEL cellulose ethers and ETHOCEL ethylcellulose ethers. Specialty Polymers includes Dow's Liquid Separations business and a line of specialty resins and powders, superabsorbent and specialty monomer products.

    The integration of Union Carbide was also the key driver in the formation of the Oxide Derivatives business. The new Oxide Derivatives global business unit was formed by Union Carbide's glycol ether and ethylene oxide derivatives businesses, along with the combined Dow glycol ether and specialty alkanolamines businesses.

    Dow divested its global Ethanolamines and Ethyleneamines businesses as part of the process to receive regulatory approval for the merger with Union Carbide. "UCC products are now integrated into our businesses and we're extremely excited about the additions," Liveris says. "Each of these unique technologies, products and services allows us to expand our offering to various markets including pharmaceutical, household and personal care, water treatment, and food processing."

    Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of approximately $30 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of Sustainable Development, Dow and its 50,000 employees seek to balance economic, environmental and social responsibilities.

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