MOSCOW (MRC) -- Dow Chemical, the largest US chemical maker by sales, plans to separate chlorine-related assets including its epoxy business as the company focuses on higher-margin activities, said Upstreamonline.
The chlorine assets account for as much as USD5 billion of annual revenue and include plants at 11 sites employing almost 2,000 people, Midland, Michigan-based Dow said Monday in a statement.
Dow said it hired financial advisers to look at options for the assets including sales, joint ventures and spinoffs. It expects to complete transactions for the assets in the next year or two.
The move “represents a continuation of the shift of our company toward downstream high-margin products and technologies that customers value, and generate consistently higher returns than cyclical commodity products,” CEO Andrew N. Liveris said in the statement.
Like competing US chemical producers DuPont and Ashland, Dow is selling or considering the sale of business lines as it attempts to unlock growth. Dow said in October that WR Grace & Co. agreed to buy its polypropylene licensing and catalyst unit for USD500 million.
In October, Dow forecast USD3 billion to USD4 billion from asset sales in the following 18 to 24 months. The company had said previously that these assets may be sold.
Dow also said Monday that it plans to shut down about 800,000 tons of chlorine and caustic equivalent capacity in Freeport, Texas.
As MRC wrote before, Grace has completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company for a cash purchase price of USD500 mln. The acquisition includes UNIPOL Polypropylene Process Technology and makes Grace the second largest polypropylene licensor in the world based on installed capacity, advancing Grace's leadership in the broader polyolefin sector.
The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.MRC