MIDLAND, Mich. – Dow Chemical Co. has announced additional actions to accelerate the company’s ongoing commitment to aggressive portfolio management, as outlined at its Investor Forum held in December 2012.
After reviewing its portfolio, Dow says it is targeting an increased divestiture list of nearly $1.5 billion over the next 18 months. The company has identified two units that will be actively marketed for divestment: Dow’s Polypropylene Licensing and Catalysts business unit and its Plastics Additives business unit.
“Today’s announcement is yet another proof point of Dow’s rigorous focus on return on capital, and is squarely in line with commitments we made earlier this year,” said Andrew Liveris, Dow’s chairman and CEO. “We are reviewing our entire portfolio and seeking even further opportunities to optimize 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."
These actions are the latest in a series of steps Dow has taken to further enhance its leadership position in high-margin, fast-growing end-markets, while simultaneously optimizing the value of assets. Since 2009, Dow has divested non-core businesses representing approximately $8 billion in revenue. In January, the company divested the stabilizers component of its Plastics Additives business, and entered into a definitive agreement to sell its 50 percent ownership in Nippon Unicar Company Limited (a Japanese joint venture in the Dow Electrical and Telecommunications business).
