Adhesives & Sealants Headlines

Dow Sells Global Polypropylene Business to Braskem

The Dow Chemical Co. recently announced it has signed a definitive agreement under which Dow’s global Polypropylene business will be divested to Braskem for a total enterprise value to Dow of $340 million, comprising a $323 million cash purchase price plus other cash and contingency assumptions of $17 million.

“This divestiture is yet another strong example of Dow’s disciplined and ongoing approach to portfolio management, and is directly aligned with our strategy to transform our Performance Plastics franchise to focus on downstream, technology-differentiated solutions,” said Andrew N. Liveris, chairman and CEO of Dow. “This business has delivered historic margins that do not meet our expectations moving forward and is no longer core to Dow’s strategy. We are shifting our Plastics portfolio from a commodity focus to that of a performance focus. This divestment is directly in line with that strategy, and allows us to continue to focus on our three main priorities: retiring debt, remunerating shareholders and investing in our innovation agenda so that we deliver consistent earnings growth.”

The divestiture includes Dow’s polypropylene manufacturing facilities at Schkopau and Wesseling, Germany, and Freeport and Seadrift, Texas. Also included are inventory, certain product and process technology, and customer contracts and lists.

Approximately 200 employees are expected to transition employment status to Braskem at the close of the transaction. Dow’s Polypropylene Licensing & Catalyst business and related catalyst facilities are excluded from the scope of the transaction. Under terms of the purchase agreement, Braskem will honor customer and supplier contracts and related agreements.

For more information, visit www.dow.com or www.braskem.com.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI April 2015 cover

2015 April

Our April issue includes previews of the ASC Spring Convention and Expo and the European Coatings Congress and Show, as well as articles detailing end-use applications in transportation, raw materials and equipment. Check it out today!

Table Of Contents Subscribe

Better Jobs

Is the economy prompting you to consider leaving your job for a better one?
View Results Poll Archive

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.