Dow Projects Growth, Outlines Strategies

18 December 2000 00:00  [Source: ICB Americas]

Dow Chemical expects sales from its Dow Plastics unit to surpass $11 billion by the end of the year, versus $9.6 billion in 1999, according to chairman and CEO Michael D. Parker. Mr. Parker, who spoke at a press briefing in New York, noted that more than half of the 15 percent growth stems from volume growth.

Mr. Parker says 2001 could be a challenging year for Dow Plastics because of a softening global GDP and continued high hydrocarbon and energy costs. But volume growth is expected to be similar to 2000.

Dow Plastics' polyolefins and elastomers business recently completed the construction of two major capacity additions, including a 550-million-pound polypropylene plant in Freeport, Tex., and a new polyethylene train in Argentina.

"We now have the capability to make and market our solution polyethylene products on four continents," says Romeo Kreinberg, business group president for Dow's polyolefins and elastomers businesses. In addition, Dow can run its Insite technology at all of its polyethylene plants, according to Mr. Kreinberg.

Dow's polyolefins and elastomers businesses are well-positioned for global growth, Mr. Kreinberg says. He cites Dow's strong customer base, powerful technology, high operating rates, broad product portfolio and drive for product efficiency.

Dow's polystyrene business also completed several expansions recently. At the company's Hanging Rock, Ohio, facility, Dow added 25,000 metric tons. In Guaruja, Brazil, Dow is upping its capacity from 110,000 metric tons to 200,000. In October, Dow broke ground for a 120,000-metric-ton plant in Zhangjiagang, China.

On a company-wide basis, Dow plans to grow its earnings per share (EPS) by 10 percent from peak to peak and trough to trough. Dow will expand its established businesses, complete value-adding mergers, and generate new business growth. If successful, Dow will be a $60 billion company by 2010, according to Mr. Parker.

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly