Traditional chemicals and plastics businesses under review at Dow

27-Feb-08

With plans to shift focus to higher-growth operations, Dow Chemical Co. is reviewing several of its traditional chemicals and plastics businesses. Dow is shifting several of its businesses into a new business group - Dow Portfolio Optimization, where they will be evaluated as candidates for joint ventures with other companies or for outright sale. The new group will include Saran products and films, synthetic rubber, polycarbonate, plastic compounds and blends, and specialty copolymers. Dow also expects to add other businesses to the portfolio. Dow has been in the process of change since the last quarter of last year, when the chemical giant announced plans to sell a 50% share in its petrochemical business to Kuwait's Petrochemical Industries Co for $9.5 bln. Dow plans to use some or all of the amount to acquire companies or businesses that are less cyclical than petrochemicals. Dow is said to be focusing its acquisition search on companies that serve rapidly growing markets, including health, energy, infrastructure, transportation and electronics.