The Dow Chemical Company (NYSE: DOW) today announced additional actions to accelerate the Company’s ongoing commitment to aggressive portfolio management, as outlined at its Investor Forum in December 2012. As a result of thorough, ongoing portfolio reviews in a slow-growth world, Dow is targeting an increased divestiture list of nearly $1.5 billion over the next 18 months. Further, the Company has identified two units that will be actively marketed for divestment: Dow’s Polypropylene Licensing and Catalysts business unit and its Plastics Additives business unit.
“Today’s announcement is yet another proof point of Dow’s rigorous focus on return on capital, and is squarely in line with commitments we made earlier this year,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “We are reviewing our entire portfolio and seeking even further opportunities to optimize value: selectively pruning assets that are no longer a strategic or financial fit – all in an effort to accelerate value creation and deliver long-term, sustainable growth for the Company.”
These actions are the latest in a series of steps the Company has taken to further enhance Dow’s leadership position in high-margin, fast-growing end-markets, while simultaneously optimizing the value of assets. Since 2009, Dow has divested non-core businesses representing approximately $8 billion in revenue. In January, the Company divested the stabilizers component of its Plastics Additives business, and entered into a definitive agreement to sell its 50 percent ownership in Nippon Unicar Company Limited (a Japanese joint venture in the Dow Electrical and Telecommunications business).
About Dow Polypropylene Licensing and Catalysts
Dow Polypropylene Licensing and Catalysts offers industry-leading technology for producing polypropylene, including UNIPOL™ PP Process Technology, CONSISTA™ D7000 Donor and SHAC™ Catalyst with Advanced Donor Technology (ADT).
About Dow Plastics Additives
Dow Plastics Additives is a worldwide supplier of additives used in a large variety of applications ranging from construction materials and packaging containers to consumer appliances and electronics, business machines and automotive parts.