''The American Lawyer'' is a monthly legal magazine and website published by ALM Media. The periodical and its parent company, ALM (then American Lawyer Media), were founded in 1979 by Steven Brill.[Keating, Gina. ]
"Judge throws out Dole "bananeros" cases, citing fraud"
– ''Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
''. – April 24, 2009.
Tax evasion
In February 2013 a federal court rejected two tax shelter transactions entered into by Dow that created approximately $1 billion in tax deductions between 1993 and 2003. In the stated opinion, the Court termed the transactions "schemes that were designed to exploit perceived weaknesses in the tax code and not designed for legitimate business reasons". The schemes were created by Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
and the law firm of King & Spalding
King & Spalding LLP is an American international corporate law firm that is headquartered in Atlanta, Georgia and with offices located in North America, Europe, the Middle East and Asia. It has over 1,200 lawyers in 23 offices globally. It is A ...
, and involved creating a partnership that Dow operated out of its European headquarters in Switzerland. Dow stated that it had paid all tax assessments with interest. The case was a lawsuit against the Internal Revenue Service seeking a refund of the taxes paid. The case was appealed to the 5th Circuit court, where Dow's claims were again rejected. Dow has petitioned for an en banc hearing by the 5th Circuit, arguing that the decision was contrary to established case law.
Price fixing
Dow Chemical was implicated in a price-fixing scheme that inflated the cost of polyurethane
Polyurethane (; often abbreviated PUR and PU) refers to a class of polymers composed of organic chemistry, organic units joined by carbamate (urethane) links. In contrast to other common polymers such as polyethylene and polystyrene, polyurethan ...
for customers. The U.S. Justice Department closed an investigation in 2007, but a class-action lawsuit won at a jury trial in 2013. Dow settled the suit in 2016 for $835 million.
Recent mergers, acquisitions and reorganization
1990s – transition from geographic alignment to global business units
In the early 1990s, Dow embarked on a major structural reorganization. The former reporting hierarchy was geographically based, with the regional president reporting directly to the overall company president and CEO. The new organization combines the same businesses from different sites, irrespective of which region they belong (i.e. the vice president for Polystyrene is now in charge of these plants all over the world).
Union Carbide merger
At the beginning of August 1999, Dow agreed to purchase Union Carbide Corp. (UCC) for $9.3 billion in stock. At the time, the combined company was the second largest chemical company, behind DuPont. This led to protests from some stockholder
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal owner ...
s, who feared that Dow did not disclose potential liabilities related to the Bhopal disaster.
William S. Stavropoulos
William Spyros Stavropoulos (born 12 May 1939) is a Greek-American businessman and philanthropist. He is the past CEO and Chairman of The Dow Chemical Company, and the current CEO and Chairman of the Michigan Baseball Foundation.
Early life an ...
served as president and chief executive officer of Dow from 1995 to 2000, then again from 2002 to 2004. He relinquished his board seat on April 1, 2006, having been a director since 1990 and chairman since 2000. During his first tenure, he led the purchase of UCC which proved controversial, as it was blamed for poor results under his successor as CEO Mike Parker. Parker was dismissed and Stavropoulos returned from retirement to lead Dow.
2006–2008 restructuring
On August 31, 2006, Dow announced that it planned to close facilities at five locations:
*Sarnia, Ontario
Sarnia is a city in Lambton County, Ontario, Canada. It had a 2021 population of 72,047, and is the largest city on Lake Huron. Sarnia is located on the eastern bank of the junction between the Upper and Lower Great Lakes where Lake Huron flo ...
was Dow's first manufacturing site in Canada, located in the Chemical Valley area alongside other petrochemical companies. In 1942, the Canadian government invited Dow to build a plant there to produce styrene (an essential raw material used to make synthetic rubber
A synthetic rubber is an artificial elastomer. They are polymers synthesized from petroleum byproducts. About 32-million metric tons of rubbers are produced annually in the United States, and of that amount two thirds are synthetic. Synthetic rubbe ...
for World War II). Dow then built a polystyrene plant in 1947. In August 1985, the site accidentally discharged 11,000 litres of perchloroethylene (a carcinogenic dry cleaning chemical) into the St. Clair River
The St. Clair River (french: Rivière Sainte-Claire) is a U.S. Geological Survey. National Hydrography Dataset high-resolution flowline dataThe National Map accessed November 7, 2011 river in central North America which flows from Lake Huron int ...
, which gained infamy in the media as "The Blob", and Dow Canada was charged by the Ministry of the Environment. Up to the early 1990s, Dow Canada's headquarters was located at the Modeland Centre, and a new three-story complex called the River Centre was opened up on the Sarnia site in 1993 to house Research and Development. Since then, several plants (Dow terminology for a production unit) on the site have been dismantled, particularly the Basic Chemicals including Chlor Alkali unit whose closure was announced in 1991 and carried out in 1994 which affected nearly half of the site's employees. The Dow Canada headquarters were moved to Calgary, Alberta
Calgary ( ) is the largest city in the western provinces and territories of Canada, Canadian province of Alberta and the largest metro area of the three Canadian Prairies, Prairie Provinces. As of 2021, the city proper had a population of 1,30 ...
in 1996, and the Modeland Centre was sold to Lambton County
Lambton County is a county in Southwestern Ontario, Canada. It is bordered on the north by Lake Huron, which is drained by the St. Clair River, the county's western border and part of the Canada-United States border. To the south is Lake Saint Cla ...
and the City of Sarnia with Dow leasing some office space. The Dow Fitness Centre was donated to the YMCA
YMCA, sometimes regionally called the Y, is a worldwide youth organization based in Geneva, Switzerland, with more than 64 million beneficiaries in 120 countries. It was founded on 6 June 1844 by George Williams in London, originally ...
of Sarnia-Lambton in 2003. The Sarnia Site's workforce declined from a peak of 1600 personnel in the early 1990s to about 400 by 2002. In the late 1990s, land on the site was sold to TransAlta
TransAlta Corporation (formerly Calgary Power Company, Ltd.) is an electricity power generator and wholesale marketing company headquartered in Calgary, Alberta, Canada. It is a privately owned corporation and its shares are traded publicly. It o ...
which built a natural gas power plant that begun operations in 2002 to supply electricity to the remaining Sarnia site plants and facilities, so that Dow could close its older less efficient steam plant (originally coal fired and later burning natural gas). On August 31, 2006, Dow announced that the entire Sarnia site would cease operations at the end of 2008. The Sarnia site had been supplied with ethylene through a pipeline from western Canada
Western Canada, also referred to as the Western provinces, Canadian West or the Western provinces of Canada, and commonly known within Canada as the West, is a Canadian region that includes the four western provinces just north of the Canada ...
but BP officials warned Dow that shipments from the pipeline had to be suspended for safety reasons, and the loss of an affordable supply for the low density polyethylene plant rendered all the other operations at the site non-competitive. The Low-Density Polyethylene and Polystyrene units closed in 2006, followed by the Latex Unit in 2008, and finally the Propylene Oxide Derivatives Unit in April 2009. Dow afterward focused its efforts on the environmental remediation of the vacant site, which was sold to TransAlta. The former site has since been renamed the Bluewater Energy Park, with the River Centre remaining available for lease.
*One plant at its site in Barry (South Wales), a triple string STR styrene polymer
A polymer (; Greek '' poly-'', "many" + ''-mer'', "part")
is a substance or material consisting of very large molecules called macromolecules, composed of many repeating subunits. Due to their broad spectrum of properties, both synthetic a ...
production unit. Integral in the company's development of the super high melt foam specific polymers & Styron A-Tech high gloss, high impact polymers.
*One plant at its site in Porto Marghera
Marghera is a ''municipalità'' (borough) of the ''comune'' of Venice, Italy. It includes the industrial area known as Porto Marghera (English: Marghera Port) or Venezia Porto Marghera.
Etymology
The name Marghera is said in popular myth to come ...
(Venice), Italy.
*Two plants at its site in Fort Saskatchewan
Fort Saskatchewan is a city along the North Saskatchewan River in Alberta, Canada. It is northeast of Edmonton, the provincial capital. It is part of the Edmonton census metropolitan area and one of 24 municipalities that constitute the Edmont ...
, Alberta, Canada.
On November 2, 2006, Dow and Izolan, the leading Russian producer of polyurethane systems, formed the joint venture Dow-Izolan and built a manufacturing facility in the city of Vladimir
Vladimir may refer to:
Names
* Vladimir (name) for the Bulgarian, Croatian, Czech, Macedonian, Romanian, Russian, Serbian, Slovak and Slovenian spellings of a Slavic name
* Uladzimir for the Belarusian version of the name
* Volodymyr for the Ukr ...
. Also in 2006, Dow formed the Business Process Service Center (BPSC).
In December 2007, Dow announced a series of moves to revamp the company. A December 4 announcement revealed that Dow planned to exit the automotive sealers business in 2008 or 2009. Within several weeks, Dow also announced the formation of a joint venture, later named K-Dow, with Petrochemical Industries Co. (PIC), a subsidiary of Kuwait Petroleum Corporation
Kuwait Petroleum Corporation ( ar, مؤسسة البترول الكويتية) is Kuwait's national oil company, headquartered in Kuwait City.
The activities of Kuwait Petroleum Corporation (KPC) are focused on petroleum exploration, produc ...
. In exchange for $9.5 billion, the agreement included Dow selling 50-percent of its interest in five global businesses: polyethylene, polypropylene and polycarbonate plastics, and ethylenamines and ethanolamine
Ethanolamine (2-aminoethanol, monoethanolamine, ETA, or MEA) is an organic chemical compound with the formula or . The molecule is bifunctional, containing both a primary amine and a primary alcohol. Ethanolamine is a colorless, viscous liquid wit ...
s. The agreement was terminated by PIC on December 28, 2008.
=Rohm & Haas Co. purchase
=
On July 10, 2008, Dow agreed to purchase
Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between ...
all of the common equity interest of Rohm and Haas
Rohm and Haas Company is a manufacturer of specialty chemicals for end use markets such as building and construction, electronic devices, packaging, household and personal care products. Headquartered in Philadelphia, the company is organized i ...
Co. for $15.4 billion, which equated to $78 per share. The buyout was financed with equity investments of $3 billion by Berkshire Hathaway Inc.
Berkshire Hathaway Inc. () is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from which it invests the float (the retained premiums ...
and $1 billion by the Kuwait Investment Authority
The Kuwait Investment Authority (KIA) is Kuwait's sovereign wealth fund, managing the state’s reserve and the state’s future generation fund (FGF).
Founded in 1953, the KIA is the world's oldest sovereign wealth fund. As of April 2022, it ...
. The purpose of the deal was to move Dow Chemical further into specialty chemicals
Speciality chemicals (also called specialties or effect chemicals) are particular chemical products which provide a wide variety of effects on which many other industry sectors rely. Some of the categories of speciality chemicals are adhesives, agr ...
, which offer higher profit margins than the commodities
In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
The price of a comm ...
market and are more difficult to enter for the competition. The purchase was criticized by many on Wall Street
Wall Street is an eight-block-long street in the Financial District of Lower Manhattan in New York City. It runs between Broadway in the west to South Street and the East River in the east. The term "Wall Street" has become a metonym for t ...
who believed Dow Chemical overpaid (about a 75 percent premium on the previous day's market capital) to acquire the company; however, the high bid was needed to ward off competing bids from BASF. The transaction to purchase the outstanding interest of Rohm and Haas was closed on April 1, 2009.
=Accelerated implementation
=
On December 8, 2008, Dow announced that due to the Financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
, it would accelerate job cuts resulting from its reorganization. The announced plan included closing 20 facilities, temporarily idling 180 plants, and eliminating 5,000 full-time jobs (about 11 percent of its work-force) and 6,000 contractor positions.
=Strategy interruption
=
Citing the global recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
that began in the latter half of 2008, the Kuwaiti government scuttled the K-Dow partnership on December 28, 2008. The collapse of the deal dealt a blow to Dow CEO Andrew Liveris
Andrew N. Liveris (born 5 May 1954) is an Australian former CEO and chairman of The Dow Chemical Company of Midland, Michigan. Liveris has been a member of Dow's board of directors since February 2004, CEO since November 2004 and was elected as ...
' vision of restructuring the company to make it less cyclical. However, on January 6, 2009 Dow Chemical announced they were in talks with other parties who could be interested in a major joint venture with the company. Dow also announced they that it would be seeking to recover damages related to the failed joint venture from PIC.
After the K-Dow deal collapsed, some speculated that the company would not complete the Rohm & Haas transaction, as the cash from the former transaction was expected to fund the latter. The deal was expected to be finalized in early 2009 and was to form one of the nation's largest specialty chemicals firms in the U.S. However, on January 26, 2009 the company informed Rohm and Haas that it would be unable to complete the transaction by the agreed upon deadline. Dow cited a deteriorated credit market
The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, bu ...
and the collapse of the K-Dow Petrochemical deal as reasons for failing to timely close the merger. Around the same time, CEO Andrew Liveris said a first- time cut to the company's 97- year- old dividend policy was not "off the table". On February 12, 2009, the company declared a quarterly dividend of $0.15/share, down from $0.42 the previous quarter. The cut represented the first time the company had diminished its investor payout in the dividend's 97-year history.
The transaction to purchase the outstanding interest of Rohm and Haas closed on April 1, 2009. After negotiating the sale of preferred stock
Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt ins ...
with Rohm and Hass' two largest stockholders and extending their one-year bridge loan
A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing. It is usually called a bridging loan in the United Kingdom, also known as a "caveat loan, ...
an additional year, the company purchased Rohm and Haas for $15 billion ($78 a share) on March 9, 2009.
2007 dismissal of senior executives
On April 12, 2007, Dow dismissed two senior executives for "unauthorized discussions with third parties about the potential sale of the company". The two figures are executive vice president Romeo Kreinberg, and director and former CFO
The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financ ...
J. Pedro Reinhard. Dow claims they were secretly in contact with JPMorgan Chase
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the ...
; at the same time, a story surfaced in Britain's ''Sunday Express
The ''Daily Express'' is a national daily United Kingdom middle-market newspaper printed in tabloid format. Published in London, it is the flagship of Express Newspapers, owned by publisher Reach plc. It was first published as a broadsheet i ...
'' regarding a possible leveraged buyout
A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loan ...
of Dow. The two executives have since filed lawsuits claiming they were fired for being a threat to CEO Liveris, and that the allegations were concocted as a pretext. However, in June 2008 Dow Chemical and the litigants announced a settlement in which Kreinberg and Reinhard dropped their lawsuits and admitted taking part in discussions "which were not authorized by, nor disclosed to, Dow's board concerning a potential LBO" and acknowledged that it would have been appropriate to have informed the CEO and board of the talks.
2008 sale of zoxamide business
In summer 2008, Dow sold its zoxamide business to Gowan Company
Gowan may refer to:
People
*Charles Gowan (1850–1938)
*David Gowan, American politician from Arizona
*Franklin B. Gowen (1836–1889), attorney, president of Reading Railroad
*Geoffrey Gowan (1929–2013), Canadian sports broadcaster
*Hunter Go ...
. Included in the sale were the trademarks for a potato
The potato is a starchy food, a tuber of the plant ''Solanum tuberosum'' and is a root vegetable native to the Americas. The plant is a perennial in the nightshade family Solanaceae.
Wild potato species can be found from the southern Unit ...
and grape
A grape is a fruit, botanically a berry, of the deciduous woody vines of the flowering plant genus ''Vitis''. Grapes are a non- climacteric type of fruit, generally occurring in clusters.
The cultivation of grapes began perhaps 8,000 years ago, ...
fungicide
Fungicides are biocidal chemical compounds or biological organisms used to kill parasitic fungi or their spores. A fungistatic inhibits their growth. Fungi can cause serious damage in agriculture, resulting in critical losses of yield, quality, ...
called Gavel (fungicide)
A gavel is a small ceremonial mallet commonly made of hardwood, typically fashioned with a handle. It can be used to call for attention or to punctuate rulings and proclamations and is a symbol of the authority and right to act officially in the ...
. It is employed by potato growers to control early and late potato blight
''Phytophthora infestans'' is an oomycete or water mold, a fungus-like microorganism that causes the serious potato and tomato disease known as late blight or potato blight. Early blight, caused by ''Alternaria solani'', is also often called "po ...
and to suppress tuber blight
Tubers are a type of enlarged structure used as storage organs for nutrients in some plants. They are used for the plant's perennation (survival of the winter or dry months), to provide energy and nutrients for regrowth during the next growing s ...
, and is also registered in Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
for control of downy mildew
Downy mildew refers to any of several types of oomycete microbes that are obligate parasites of plants. Downy mildews exclusively belong to the Peronosporaceae family. In commercial agriculture, they are a particular problem for growers of crucif ...
in grapes
A grape is a fruit, botanically a berry, of the deciduous woody vines of the flowering plant genus ''Vitis''. Grapes are a non- climacteric type of fruit, generally occurring in clusters.
The cultivation of grapes began perhaps 8,000 years ago ...
, except in British Columbia
British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, ...
.
2014 – New operating segments
In the fourth quarter of 2014, Dow announced new operating segments in response to its previously announced leadership changes. The company stated it would give further support to its end-market orientation and increase its alignment to Dow's key value chains – ethylene and propylene.
U.S. Gulf Coast investments
Several plants on the Gulf Coast
The Gulf Coast of the United States, also known as the Gulf South, is the coastline along the Southern United States where they meet the Gulf of Mexico. The coastal states that have a shoreline on the Gulf of Mexico are Texas, Louisiana, Mississ ...
of the US have been in development since 2013, as part of Dow's transition away from naphtha. Dow estimates the facilities will employ about 3000 people, and 5000 people during construction. The plants will manufacture materials for several of its growing segments, including hygiene and medical, transportation, electrical and telecommunications, packaging, consumer durables
In economics, a durable good or a hard good or consumer durable is a good that does not quickly wear out or, more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be consid ...
and sports and leisure.
Dow's new propane dehydrogenation (PDH) facility in Freeport, Texas, was expected to come online in 2015, with a first 750000 tonne
The tonne ( or ; symbol: t) is a unit of mass equal to 1000 kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton to distinguish it from the non-metric units of the short ton ( United State ...
per year unit, while other units would become available in the future. An ethylene production facility was expected to start up in the first half of 2017.
Chlorine merger
On March 27, 2015, Dow and Olin Corporation
Olin Corporation is an American manufacturer of ammunition, chlorine, and sodium hydroxide. The company traces its roots to two companies, both founded in 1892: Franklin W. Olin's Equitable Powder Company and the Mathieson Alkali Works. Olin che ...
announced that the boards of directors of both companies unanimously approved a definitive agreement under which Dow will separate a significant portion of its chlorine business and merge that new entity with Olin in a transaction that will create an industry leader, with revenues approaching $7 billion. Olin, the new partnership, became the largest chlorine producer in the world.
2015 merger and 2019 separation with DuPont
On December 11, 2015, Dow announced that it would merge with DuPont
DuPont de Nemours, Inc., commonly shortened to DuPont, is an American multinational chemical company first formed in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. The company played a major role in ...
, in an all-stock deal. The combined company, which was known as DowDuPont
DuPont de Nemours, Inc., commonly shortened to DuPont, is an American multinational chemical company first formed in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. The company played a major role in ...
, had an estimated value of $130 billion, was equally held by the shareholders of both companies, and maintained their respective headquarters in Michigan and Delaware. Within two years of the merger's closure, DowDuPont was set to split into three separate public companies, focusing on the agriculture, chemical, and specialty product industries. Shareholders of each company held 50% of the combined company. Dow Chemical CEO Andrew N. Liveris
Andrew N. Liveris (born 5 May 1954) is an Australian former CEO and chairman of The Dow Chemical Company of Midland, Michigan. Liveris has been a member of Dow's board of directors since February 2004, CEO since November 2004 and was elected as ...
became executive chairman of the new entity, while DuPont CEO Edward D. Breen became CEO. In January 2017, the merger was pushed back a second time pending regulatory approvals.
The same day, Dow also announced that it had reached a deal to acquire Corning Incorporated
Corning Incorporated is an American multinational technology company that specializes in specialty glass, ceramics, and related materials and technologies including advanced optics, primarily for industrial and scientific applications. The co ...
's stake in their joint venture Dow Corning
Dow Corning Corporation, was an American multinational corporation headquartered in Midland, Michigan, United States. Originally established as a joint venture between The Dow Chemical Company and Corning Incorporated, Dow bought out Corning and ...
for $4.8 billion in cash and a roughly 40% stake in Hemlock Semiconductor Corporation Hemlock Semiconductor (HSC) is the largest and only producer of hyper-pure polysilicon headquartered in the United States. Founded in 1961, it is owned by Corning Inc. and Shin-Etsu Handotai and named after Hemlock, Michigan, the location of its f ...
.
In 2019, DowDuPont de-merged, forming Dow Inc.
The Dow Chemical Company, officially Dow Inc., is an American multinational chemical corporation headquartered in Midland, Michigan, United States. The company is among the three largest chemical producers in the world.
Dow manufactures plastics ...
The spin-off was completed on April 1, 2019, at which time Dow Inc. became an independent, publicly traded company, and the direct parent company of The Dow Chemical Company.
Focus on higher margin business
Dow Chemical has begun to shed commodity chemical businesses, such as those making the basic ingredients for grocery bags and plastic pipes, because their profit margins only average 5–10%. Dow is, as of 2015, focusing its resources on specialty chemicals that earn profit margins of at least 20%.
Dioxin contamination
Areas along Michigan's Tittabawassee River
The Tittabawassee River flows in a generally southeasterly direction through the Lower Peninsula of the U.S. state of Michigan. The river begins at Secord Lake in Clement Township, at the confluence of the East Branch and the Middle Branch. From ...
, which runs within yards of Dow's main plant in Midland, were found to contain elevated levels of the cancer-causing chemical dioxin
Dioxin may refer to:
* 1,2-Dioxin or 1,4-Dioxin, two unsaturated heterocyclic 6-membered rings where two carbon atoms have been replaced by oxygen atoms, giving the molecular formula C4H4O2
*Dibenzo-1,4-dioxin, the parent compound also known as ...
in November 2006. The dioxin was located in sediments two to ten feet below the surface of the river, and, according to ''The New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', "there is no indication that residents or workers in the area are directly exposed to the sites". However, people who often eat fish from the river had slightly elevated levels of dioxin in their blood. In July 2007, Dow reached an agreement with the Environmental Protection Agency
A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale f ...
to remove of sediment from three areas of the riverbed and levees of the river that had been found to be contaminated. In November 2008, Dow Chemical along with the United States Environmental Protection Agency
The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it be ...
and Michigan Department of Environmental Quality
The Michigan Department of Environment, Great Lakes, and Energy (EGLE), formerly Michigan Department of Environmental Quality (Michigan DEQ, MDEQ, or simply DEQ), is a principal department of the U.S. state of Michigan for environmental issues. T ...
agreed to establish a Superfund
Superfund is a United States federal environmental remediation program established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). The program is administered by the United States Environmental Pro ...
to address dioxin cleanup of the Tittabawassee River, Saginaw River
The Saginaw River is a U.S. Geological Survey. National Hydrography Dataset high-resolution flowline dataThe National Map accessed November 7, 2011 river in the U.S. state of Michigan. It is formed by the confluence of the Tittabawassee and Sh ...
and Saginaw Bay
Saginaw Bay is a bay within Lake Huron located on the eastern side of the U.S. state of Michigan. It forms the space between Michigan's Thumb region and the rest of the Lower Peninsula of Michigan. Saginaw Bay is in area. It is located in part ...
.
Sale of herbicide business
In December 2015, Dow Chemicals agreed to sell part of its global herbicide
Herbicides (, ), also commonly known as weedkillers, are substances used to control undesired plants, also known as weeds.EPA. February 201Pesticides Industry. Sales and Usage 2006 and 2007: Market Estimates. Summary in press releasMain page fo ...
business, which had reported falling sales for nearly a year. A portfolio of weed killers known as dinitroanilines was sold to privately held Gowan Company
Gowan may refer to:
People
*Charles Gowan (1850–1938)
*David Gowan, American politician from Arizona
*Franklin B. Gowen (1836–1889), attorney, president of Reading Railroad
*Geoffrey Gowan (1929–2013), Canadian sports broadcaster
*Hunter Go ...
, a family owned company located in Yuma, Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
, which markets a variety of pesticides to the agricultural and horticultural industries.[producer.com: "Dow sells popular herbicides Treflan and Edge to Gowan"](_blank)
10 Dec 2015 The global trademarks for Treflan (pesticide)®, which can be sprayed on field corn
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
, cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus ''Gossypium'' in the mallow family Malvaceae. The fiber is almost pure cellulose, and can contain minor perce ...
and some fruit and vegetables, were included in the sale, as well as a formulation and packaging facility in Fort Saskatchewan
Fort Saskatchewan is a city along the North Saskatchewan River in Alberta, Canada. It is northeast of Edmonton, the provincial capital. It is part of the Edmonton census metropolitan area and one of 24 municipalities that constitute the Edmont ...
, Alberta
Alberta ( ) is one of the thirteen provinces and territories of Canada. It is part of Western Canada and is one of the three prairie provinces. Alberta is bordered by British Columbia to the west, Saskatchewan to the east, the Northwest Ter ...
, Canada. Edge (pesticide)®, Team (pesticide)®, Bonalan (pesticide)® and Sonalan (pesticide)®, intellectual property and labels for herbicides based on the molecules trifluralin
Trifluralin is a commonly used pre-emergence herbicide. With about used in the United States in 2001, it is one of the most widely used herbicides. Trifluralin is generally applied to the soil to provide control of a variety of annual grass an ...
, benfluralin and ethalfluralin were also included in the sale. Annual grasses and small seeded broadleaf weeds can be controlled with these products in a wide range of crops including cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus ''Gossypium'' in the mallow family Malvaceae. The fiber is almost pure cellulose, and can contain minor perce ...
, beans, canola, cereals, crucifers, cucurbits, and vegetables. Dinitroanilines, are also known as "DNA herbicides", and have been commercialised at least since 1970.
2020 evacuation
In May 2020, Dow Chemical and many other areas in Midland County, Michigan were forced to evacuate due to high flooding which was caused by the breach of the Edenville Dam, Edenville and Sanford Lake, Sanford dams following two days of heavy rainfall in the area.
Products
Dow is a large producer of plastics, including polystyrene
Polystyrene (PS) is a synthetic polymer made from monomers of the aromatic hydrocarbon styrene. Polystyrene can be solid or foamed. General-purpose polystyrene is clear, hard, and brittle. It is an inexpensive resin per unit weight. It is a ...
, polyurethane
Polyurethane (; often abbreviated PUR and PU) refers to a class of polymers composed of organic chemistry, organic units joined by carbamate (urethane) links. In contrast to other common polymers such as polyethylene and polystyrene, polyurethan ...
, polyethylene, polypropylene, and synthetic rubber. It is also a major producer of ethylene oxide, various acrylates, surfactants, and cellulose resins. It produces agricultural chemicals including the pesticide Lorsban and consumer products including Styrofoam. Some Dow consumer products, including Saran (plastic), Saran wrap, Ziploc bags, and Scrubbing Bubbles were sold to S. C. Johnson & Son in 1997.
Performance plastics
Performance plastics make up 25% of Dow's sales,[''Chemical and Engineering News'', Vol. 84, Issue 22 (May 29, 2006), pp 10–15] with many products designed for the automotive industry, automotive and construction industry, construction industries. The plastics include polyolefins such as polyethylene and polypropylene, as well as polystyrene
Polystyrene (PS) is a synthetic polymer made from monomers of the aromatic hydrocarbon styrene. Polystyrene can be solid or foamed. General-purpose polystyrene is clear, hard, and brittle. It is an inexpensive resin per unit weight. It is a ...
used to produce Styrofoam insulating material. Dow manufactures epoxy resin intermediates including bisphenol A and epichlorohydrin. Saran (plastic), Saran resins and films are based on polyvinylidene chloride (PVDC)
Performance chemicals
The Performance Chemicals (17 percent of sales) segment produces chemicals and materials for water purification, pharmaceuticals, paper coatings, paints and advanced electronics industry, electronics. Major product lines include nitroparaffins, such as nitromethane, used in the pharmaceutical industry and manufactured by Angus Chemical Company, a wholly owned subsidiary of The Dow Chemical Co. Important polymers include Dowex ion-exchange resins, acryl group, acrylic and polystyrene latex, as well as Carbowax polyethylene glycols. Specialty chemicals are used as starting materials for production of agrochemicals and pharmaceuticals.
Water purification
Dow Water and Process Solutions (DW&PS) is a Strategic business unit, business unit which manufactures Filmtec reverse osmosis membranes which are used to purify water for Potable, human use in the Middle East. The technology was used during the 2000 Summer Olympics and 2008 Summer Olympics. The DW&PS business unit remained with DowDuPont following the April 2019 spin-off.
Agricultural sciences
Agricultural Sciences, or (Dow AgroSciences), provides 7 percent of sales and is responsible for a range of insecticides (such as Lorsban), herbicides and fungicide
Fungicides are biocidal chemical compounds or biological organisms used to kill parasitic fungi or their spores. A fungistatic inhibits their growth. Fungi can cause serious damage in agriculture, resulting in critical losses of yield, quality, ...
s. Seeds from genetically modified plants are also an important area of growth for the company. Dow AgroSciences sells seeds commercially under the following brands: Mycogen (grain corn, silage corn, sunflowers, alfalfa, and sorghum), Atlas (soybean), PhytoGen (cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus ''Gossypium'' in the mallow family Malvaceae. The fiber is almost pure cellulose, and can contain minor perce ...
) and Hyland Seeds in Canada (corn, soybean, alfalfa, navy beans and wheat). The Dow AgroSciences business unit was spun off into Corteva, Corteva Inc, on June 3, 2019.
Basic plastics
Basic plastics (26 percent of sales) end up in everything from diaper liners to beverage bottles and oil tanks. Products are based on the three major polyolefins – polystyrene (such as Styron resins), polyethylene and polypropylene.
Basic chemicals
Basic chemicals (12 percent of sales) are used internally by Dow as raw materials and are also sold worldwide. Markets include dry cleaning, paints and coatings, snow and ice control and the food industry. Major products include ethylene glycol, sodium hydroxide, caustic soda, chlorine
Chlorine is a chemical element with the Symbol (chemistry), symbol Cl and atomic number 17. The second-lightest of the halogens, it appears between fluorine and bromine in the periodic table and its properties are mostly intermediate betwee ...
, and vinyl chloride monomer (VCM, for making PVC). Ethylene oxide and propylene oxide and the derived alcohols ethylene glycol and propylene glycol are major feedstocks for the manufacture of plastics such as polyurethane
Polyurethane (; often abbreviated PUR and PU) refers to a class of polymers composed of organic chemistry, organic units joined by carbamate (urethane) links. In contrast to other common polymers such as polyethylene and polystyrene, polyurethan ...
and polyethylene terephthalate, PET.
Hydrocarbons and energy
The Hydrocarbons and Energy operating segment (13 percent of sales) oversees energy management at Dow. Fuels and oil-based raw materials are also procured. Major feedstocks for Dow are provided by this group, including ethylene, propylene, 1,3-butadiene, benzene and styrene
Styrene () is an organic compound with the chemical formula C6H5CH=CH2. This derivative of benzene is a colorless oily liquid, although aged samples can appear yellowish. The compound evaporates easily and has a sweet smell, although high concen ...
.
Hand sanitizer
In March 2020, during the COVID-19 pandemic, Coronavirus outbreak, Dow expanded its European hand sanitizer production, providing the product free to hospitals.
Finances
For the fiscal year 2017, Dow Chemicals reported earnings of US$1.5 billion, with an annual revenue of US$62.5 billion, an increase of 29.8% over the previous fiscal cycle. Dow Chemicals shares traded at over $67 per share, and its market capitalization was valued at over US$121.1 billion in September 2018.
Environmental record
In 2003, Dow agreed to pay $2 million, the largest penalty ever in a pesticide case, to the state of New York for making illegal safety claims related to its pesticides. The New York Attorney General's Office stated that Dow AgroSciences had violated a 1994 agreement with the State of New York to stop advertisements making safety claims about its pesticide products. Dow stated that it was not admitting to any wrongdoing, and that it was agreeing to the settlement to avoid a costly court battle.
According to the United States Environmental Protection Agency
The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it be ...
(EPA), Dow has some responsibility for 96 of the United States' Superfund
Superfund is a United States federal environmental remediation program established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). The program is administered by the United States Environmental Pro ...
toxic waste sites, placing it in 10th place by number of sites. One of these, a former UCC uranium and vanadium processing facility near Uravan, Colorado, is listed as the sole responsibility of Dow. The rest are shared with numerous other companies. Fifteen sites have been listed by the EPA as finalized (cleaned up) and 69 are listed as "construction complete", meaning that all required plans and equipment for cleanup are in place.
In 2007, the chemical industry trade association – the American Chemical Council – gave Dow an award of 'Exceptional Merit' in recognition of longstanding energy efficiency and conservation efforts. Between 1995 and 2005, Dow reduced energy intensity (BTU per pound produced) by 22 percent. This is equivalent to saving enough electricity to power eight million US homes for a year. The same year, Dow subsidiary, Dow Agrosciences, won a United Nations Montreal Protocol Innovators Award for its efforts in helping replace methyl bromide – a compound identified as contributing to the depletion of the ozone layer. In addition, Dow Agrosciences won an EPA "Best of the Best" Stratospheric Ozone Protection Award. The United States Environmental Protection Agency
The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it be ...
(EPA) named Dow as a 2008 Energy Star Partner of the Year for excellence in energy management and reductions in greenhouse gas emissions.
Carbon footprint
Dow Chemical Company reported Total carbon footprint, CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 33,100 Kt (+700/+2.2% y-o-y)[Alt URL]
/ref> and plans to reduce emissions 15% by 2030 from a 2019 base year.
Board of directors
The final board of directors of The Dow Chemical Co. were, prior to the closing of the merger with DuPont on September 1, 2017:
* Ajay Banga – president and CEO, MasterCard[Board of Directors](_blank)
Dow.com. Retrieved on 2013-08-17.
* Jacqueline Barton – chemistry professor, California Institute of Technology
* James A. Bell – former president and CFO, Boeing
* Richard K. Davis - chairman of the board and chief executive officer of U.S. Bancorp
* Jeff Fettig – chairman and CEO, Whirlpool Corporation, Whirlpool Corp.
* Jim Fitterling - chairman and CEO, Dow Inc.
The Dow Chemical Company, officially Dow Inc., is an American multinational chemical corporation headquartered in Midland, Michigan, United States. The company is among the three largest chemical producers in the world.
Dow manufactures plastics ...
* Andrew N. Liveris
Andrew N. Liveris (born 5 May 1954) is an Australian former CEO and chairman of The Dow Chemical Company of Midland, Michigan. Liveris has been a member of Dow's board of directors since February 2004, CEO since November 2004 and was elected as ...
– former chairman and CEO, The Dow Chemical Co.
* Mark Loughridge - former chief financial officer, IBM
* Raymond J. Milchovich - lead director of Nucor and former chairman and CEO of Foster Wheeler AG
* Steve Miller (business), Robert S. (Steve) Miller - International Automotive Components (IAC) Group
* Paul Polman – CEO Unilever PLC and Unilever
* Dennis H. Reilley – former chairman Covidien Ltd.
* James Ringler – vice chairman, Illinois Tool Works Inc.
* Ruth G. Shaw – former president and CEO, Duke Energy Corporation, Duke Energy Corp.
The ten members of the board of directors of today's iteration of Dow are:
* Samuel R. Allen – chairman and former CEO, Deere & Company
* Ajay Banga – president & CEO MasterCard
* Jacqueline Barton – chemistry professor, California Institute of Technology
* James A. Bell – former president and CFO Boeing
* Wesley G. Bush – chairman, Northrop Grumman
* Richard K. Davis – chairman and CEO of U.S. Bancorp; Make-A-Wish chairman
* Jeff Fettig – former chairman and CEO, Whirlpool Corporation, Whirlpool Corp.
* Jim Fitterling – Dow Inc. chairman and CEO
* Jacqueline Hinman – former chairman, president and CEO of CH2M Hill
* Jill S. Wyant – Executive vice president, EVP and president of global regions, Ecolab, Inc.
* Daniel W. Yohannes – former U.S. Ambassador to the Organisation for Economic Co-operation and Development
Major sponsorships
In July 2010, Dow became a worldwide partner of the Olympic Games. The sponsorship extended until 2020.
In September 2004, Dow obtained the naming rights to the Saginaw County Event Center in Saginaw, Michigan; the center is now called the Dow Event Center. The Saginaw Spirit (of the Ontario Hockey League) plays at the center, which also hosts events such as professional wrestling, live theater, and concerts.
In October 2006, Dow bought the naming rights to the stadium used by the Great Lakes Loons, a Midwest League, Single-A minor league baseball team located in its hometown of Midland, Michigan
Midland is a city in and the county seat of Midland County, Michigan. The city's population was 42,547 as of the 2020 census. It is the principal city of the Midland Micropolitan Statistical Area, part of the larger Saginaw-Midland-Bay City Comb ...
. The stadium is called Dow Diamond. The Dow Foundation played a key role in bringing the Loons to the city.
In 2010, Dow signed a $100m (£63m) 10-year deal with the International Olympic Committee and agreed to sponsor the £7m Olympic Stadium wrap.
Since 2014 Dow also sponsors Austin Dillon, Austin Dillon's #3 Chevrolet for Richard Childress Racing in the NASCAR Cup Series.
Major collaborations
Lab Safety Academy
On May 20, 2013, Dow launched the Dow Lab Safety Academy, a website that includes a large collection of informational videos and resources that demonstrate best practices in laboratory safety. The goal of the website is to improve awareness of safety practices in academic research laboratories and to help the future chemical workforce develop a safety mindset. As such, the Dow Lab Safety Academy is primarily geared toward university students. However, Dow has made the content open to all, including those already employed in the chemical industry. The Dow Lab Safety Academy is also available through the Safety and Chemical Engineering Education program, an affiliate of American Institute of Chemical Engineers (AIChE); and The Campbell Institute, an organization focusing on environment, health and safety practices.
The Dow Lab Safety Academy is one component of Dow's larger laboratory safety initiative launched in early 2012, following a report from the U.S. Chemical Safety Board that highlighted the potential hazards associated with conducting research at chemical laboratories in academic institutions. Seeking to share industry best practices with academia, Dow partnered with several U.S. research universities to improve safety awareness and practices in the departments of chemistry, chemical engineering, engineering and materials. Through the pilot programs with U.C. Santa Barbara (UCSB), University of Minnesota, and Pennsylvania State University, Dow worked with graduate students and faculty to identify areas of improvement and develop a culture of laboratory safety.
Nature conservancy
In January 2011, The Nature Conservancy and The Dow Chemical Co. announced a collaboration to integrate the value of nature into business decision-making. Scientists, engineers, and economists from The Nature Conservancy and Dow are working together at three pilot sites (North America, Latin America, and TBD) to implement and refine models that support corporate decision-making related to the value and resources nature provides. Those ecosystem services include water, land, air, oceans and a variety of plant and animal life. These sites will serve as a “living laboratories”, to validate and test methods and models so they can be used to inform more sustainable business decisions at Dow and hopefully influence the decision-making and business practices of other companies.
Part-owned companies
Companies part-owned by Dow include:[
*EQUATE Petrochemical Co. K.S.C.C.
*The Kuwait Olefins Company K.S.C.C.
*The Kuwait Styrene Company K.S.C.C.
*Map Ta Phut Olefins Company Limited
*SCG-DOW Group
*Sadara Chemical Company
]
Notable employees
* George Becker (labor leader), George Becker, former vice president of the AFL–CIO, and president of the United Steelworkers; worked at a Dow's aluminum rolling mill in Madison, Illinois, where he was a shop steward.
* Buddy Burris, professional football player with the Green Bay Packers; worked for Dow following his football career.
* Norman F. Carnahan, chemical engineer; worked at Dow's Plaquemines Parish, Louisiana division from 1965 to 1968.
* Sven Trygve Falck, Norwegian engineer, businessperson and politician; Dow engineer in Texas from 1967 to 1970.
* Larry Garner, Louisiana blues musician; worked at Dow's Baton Rouge, Louisiana facility.
* Bettye Washington Greene, first African-American female chemist employed at Dow; began working in 1965 at the E.C. Britton Lab.
* Alexandre Hohagen, vice president for Latin America and US Hispanics at Facebook; former public relations manager for Dow Chemical Brazil.
* Zdravko Ježić, Olympic silver medalist; worked for Dow in Texas on the development of urethane and oxide polymers.
* Claude-André Lachance, youngest person elected to the House of Commons of Canada (prior to 2011); director of public affairs for Dow Canada.
* Ray McIntire, inventor of Styrofoam; began working for Dow in 1940 and became a research director.
* Fred McLafferty, chemist who pioneered the technique of gas chromatography-mass spectrometry; began working at Dow's organic chemistry research laboratory in Midland, Michigan in the 1950s.
* John Moolenaar, member of the Michigan Senate and Michigan House of Representatives; worked as a chemist for Dow.
* George Andrew Olah, recipient of 1994 Nobel Prize in Chemistry; employed at Dow's Sarnia, Canada plant in the late 1950s.
* Forrest Parry, inventor of the magnetic stripe card; worked for Dow in the 1950s.
* Roy A. Periana, American organometallic chemist; worked for Dow at Midland, Michigan.
* Abu Ammaar Yasir Qadhi, conservative American Islamic cleric; worked for Dow after obtaining a chemical engineering degree from the University of Houston.
* Abraham Quintanilla Jr., singer-songwriter; former shipping clerk at Dow's Freeport, Texas facility.
* Sheldon Roberts, semiconductor pioneer who helped found Silicon Valley; former technical researcher at Dow.
* Alexander Shulgin, chemist and pharmacologist credited with introducing the drug MDMA ("ecstasy") to psychologists in the late 1970s; worked for Dow in the 1960s, where he invented Mexacarbate, Zectran, the first biodegradable insecticide.
* Mary P. Sinclair, environmental activist; former technical researcher at Dow.
* Huimin Zhao, Centennial Endowed Chair of Chemical and Bio-Molecular Engineering at the University of Illinois Urbana-Champaign; project leader at Dow's Industrial Biotechnology Laboratory.
See also
* BASF
* Union Carbide
Union Carbide Corporation is an American chemical corporation wholly owned subsidiary (since February 6, 2001) by Dow Chemical Company. Union Carbide produces chemicals and polymers that undergo one or more further conversions by customers befor ...
References
Further reading
*Ray H. Boundy, J. Lawrence Amos. (1990). ''A History of the Dow Chemical Physics Lab: The Freedom to be Creative''. M. Dekker. .
*E. Ned Brandt. (2003). ''Growth Company: Dow Chemical's First Century''. Michigan State University Press.
* Don Whitehead and Max Dendermonde. (1968). ''The Dow Story: The History of the Dow Chemical Co''. McGraw-Hill. .
External links
*
Dow Chemical Company Historical Image Collection
Science History Institute Digital Collections (An extensive collection of photographs and slides depicting the facilities, operations, and products of The Dow Chemical Company, primarily dating from the second half of the 20th century).
Advertisements from the Dow Chemical Historical Collection
Science History Institute Digital Collections (An extensive collection of domestic print advertisements, leaflets, posters, and other ephemera for various brands of The Dow Chemical Company, primarily taken from magazines published between 1921 and 1993).
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Dow Chemical Company,
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1897 establishments in Michigan
Chemical companies established in 1897
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