14 March 2013 13:56 [Source: ICIS news]
HOUSTON (ICIS)--Dow Chemical is speeding up its divestment programme, targeting more than $1bn (€770m) in proceeds from divestments, the US-based chemicals major said on Thursday.
The divestments will include Dow’s polypropylene (PP) licensing and catalysts business unit and its plastics additives business unit, it said.
In December last year, Dow had announced it was seeking to divest businesses with revenues of around $1bn over 12 months.
However, on Thursday Dow said it decided that additional action was needed.
“As a result of thorough, ongoing portfolio reviews in a slow-growth world, Dow is targeting an increased divestiture list of nearly $1.5bn over the next 18 months,” it said in a statement.
“We are reviewing our entire portfolio and seeking even further opportunities to optimise value: selectively pruning assets that are no longer a strategic or financial fit – all in an effort to accelerate value creation and deliver long-term, sustainable growth for the company,” CEO Andrew Liveris said.
Since 2009, Dow has divested non-core businesses representing about $8bn in revenue, it said.
($1 = €0.77)
Additional reporting by Joseph Chang
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