05 September 2006 22:36 [Source: ICIS news]
HOUSTON (ICIS news)--Dow Chemical is just ahead of the industry curve in its decision to shut down five plants around the world, an analyst with Citigroup said on Tuesday.
“Dow’s new CEO [chief executive officer] Andrew Liveris is making his mark on the company by pro-actively shutting down five plants around the world,” said chemicals analyst PJ Jukevar. Dow’s actions reflect its strategic shift of commodity assets to low-cost sites in the ?xml:namespace>
The shutdowns will reduce North American capacities for chlor-alkali by 3.1%m, polystyrene by 3.9% and low density polyethylene by 2.2%, Jukevar said. It will also reduce global capacity for toluene diisocyanate by 6%.
“What is strikingly different about these shutdowns compared [with] the previous ones back in 2002, is that these actions are being taken during the good times rather than waiting for the bad times,” Jukevar said. “Management didn’t have to shut down these assets, but opted to do so, especially the chlor-alkali plant in
The decision to close the chlor-alkali plant in
“So although the caustic molecule was very profitable, the EDC trade with
The broader issue surrounding the shutdowns involves
“This raises an important question for the broader industry regarding many plants in the
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