Dow thrust on price increases and JVs as remedy to limp Q3 results

07-Nov-07

After a lackluster financial performance in Q3 (profits were down 23%), Dow Chemical has embarked on a plan to recoup its margins. The chemical giant has announced a series of price increases and plans to embark on possible joint ventures. The company plans to moderate its major challenge of high and volatile feedstock and energy costs through a focus on aggressive actions to maintain margins, and through joint ventures with companies that have competitive feedstock positions. These JVs are planned to provide the company with its feedstock requirements on an ongoing basis, not just on one project. Dow's list of North American price increases in late October and early November include: surfactants, caustic soda, acrylates, solvents, polyolefin films, propylene glycol, etc. Dow also announced recently that it was investing $100 million into an R&D facility in India.