Dow energy costs surge to $32bn in 2008

05 June 2008 15:51  [Source: ICIS news]

CHARLOTTE, North Carolina (ICIS news)--Dow Chemical has seen its energy costs surge to an estimated $32bn (€21bn) in 2008, compared with $8bn in 2002, Dow Coating’s top executive said on Thursday.

Dow is one of the largest energy consumers in the world.

“Consumers need to be educated about not having a holistic energy policy,” George Hamilton, president and general manager of Dow Coating Solutions, said in an interview.

Consumers will pay more for added value they know is in the product, he said.

“They do not realize the run-up in oil prices goes beyond their gas tank and utility bills.”

While the surge in energy and raw materials costs has been a burden on consumers and the industry alike, Hamilton said Dow’s strategy is to develop solutions through technology that attenuate the problem.

“There is only so much you can absorb,” said Hamilton.

He added: “The value chain needs to be reset.”

Hamilton spoke with ICIS news on the sidelines of the American Coatings Show and Conference, sponsored by the National Paint & Coatings Association.

($1=€0.65)

To discuss issues facing the global chemical industry go to ICIS connect

By: Ivan Lerner
+1 713 525 2653

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