Plastics News Report
Midland, Michigan- Dow Chemical Co. is considering whether some of its speciality plastics businesses should be sold, placed into joint ventures, or realigned with other Dow businesses.
The company announced today that it has created a new business group, Dow Portfolio Optimization, for the selected businesses. They include:
* Saran products and specialty films
* Compounds and blends
* Synthetic rubber
* Speciality copolymers
The polyurethanes business is not listed among those affected.
George Biltz, who currently heads the company's Specialty Plastics and Elastomers business, has been appointed business group president of the new group.
Other businesses may be added to the group of units being considered for changes, according to the Midland-based chemical company.
In a news release, Dow said: "Going forward, the company expects to align other Dow businesses to the portfolio as they are assessed for strategic alignment with Dow's transformational strategy.
Andrew Liveris, Dow's chairman and chief executive officer, added: "Our newly created portfolio brings this highly important activity squarely into the spotlight, ensuring we drive it forward with discipline, with diligence and with due speed."
Dow has been pursuing an "asset light" strategy, in which it has placed some plastics operations into joint ventures to take advantage of benefits like lower feedstock costs. Already, Dow is in the process of transforming its plastics businesses through a joint venture with state-owned Petrochemical Industries Co. of Safat, Kuwait. In the JV, Dow is selling half of its PE, PP and polycarbonate assets - and other related businesses - to PIC for $9500 million.