Midland, Michigan – Dow Chemical will maintain integration benefits between its polyurethane and the chlorine business, which is to be carved out of Dow said Glenn Wright, business president, Dow Polyurethanes, Systems and PO/PG in a statement.
Chlorine is an important pre-cursor chemical used to make phosgene, which is used to produce isocyanates.
Wright said: “In North America maintaining our integration benefit will be a critical priority. We anticipate there will be multiple supply and purchase arrangements between these units and Dow, given the high degree of integration.
Speaking at an investor conference call, Andrew Liveris, president, chairman & CEO, Dow Chemical, said: “Our market choices have dramatically changed our chlorine integration needs and we are aligning our integration needs for our strategic, downstream franchises such as Polyurethanes.
“While our polyurethanes and AgroSciences franchises have experienced positive growth at 7% CAGR [compound annual growth rate] since 2006, their chlorine footprint has remained flat due new technology, asset optimisation, and new product,” said Liveris.
“Dow is committed to its current polyurethane business and optimistic about its ability to generate return on capital,” said Wright.
Dow announced the plan to separate its chlorine business on 2 December 2013.
