02 December 2008 16:36 [Source: ICIS news]
By Joseph Chang
NEW YORK (ICIS news)--US chemical major Dow Chemical will announce a major expansion of its cost savings plans for US specialty producer Rohm and Haas in the next few weeks, Dow chairman and CEO Andrew Liveris said on Tuesday.
“Our original cost savings targets will not only hold, but we’ll have a lot more to say on that in the coming weeks,” Liveris said.
“We’re in the middle of finalising the numbers.”
When Dow announced its acquisition of Rohm and Haas for $18.8bn (€14.9bn) in July, the company originally planned to achieve $800m in annual cost savings from the integration - 40% in the first year and 60% in the second.
In its late October third-quarter results conference call, Dow announced it expected to get a $100m run rate on cost savings by day one of the acquisition.
“We already have a head start on our target of 40% in year one, and we’ll have a lot more to say about that in a couple of weeks,” said Liveris.
($1 = €0.79)
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