By Liz White, UT staffCalgary, Canada-Dow Chemical Canada Inc. is closing its Dow BioProducts unit, and will stop making Woodstalk-brand products at its plant in Elie, Manitoba, by 31 Dec 2005.
Dow created the BioProducts unit in June 2001, buying most of the assets of Isobord Enterprises, and produced Woodstalk-a more environmentally-benign, high-quality alternative to wood-based medium density fibreboard (MDF) and particle board.
Woodstalk used polyurethane resin as a binder instead of the conventional formaldehyde binders. Dow explained that, despite refining the manufacturing process and improving product quality, demand for high-quality, low VOC fibreboard was not high enough to sustain the business.
"This, coupled with higher operating costs due to increased natural gas and oil prices and overall costs of doing business, made it ever more difficult to justify continued operation of the business and the plant," a Dow statement said."