The New Dow Is Largest Pe Producer in North America
The proposed merger between Dow Chemical Co. (Midland, MI) and Union Carbide Corp. (Danbury, CT) will create a global chemical company that ranks second in the world after DuPont. In plastics specific...
The proposed merger between Dow Chemical Co. (Midland, MI) and Union Carbide Corp. (Danbury, CT) will create a global chemical company that ranks second in the world after DuPont. In plastics specifically, it makes Dow the largest producer of ethylene and polyethylene in North America.
The US $11.6 billion deal still required regulatory and shareholder approval as we went to press.
Dow president and CEO, William Stavropoulos, says the merger “strengthens Dow’s basic business, makes sure we are the low cost producers, and gives us more platforms and markets to grow from.”
Plans for Union Carbide ventures in Alberta will go ahead on schedule, says Union Carbide chairman and CEO, William Joyce. The company is building a $316 million polyethylene unit at Prentiss, and has a joint venture with NOVA Chemicals Corp. (Calgary, Alta.) to build an ethylene plant at Joffre. The Joffre ethylene plant is expected to start-up mid-2000.
Stavropoulos has also stated his support of the Alberta projects. “The facilities that Union Carbide has and is building there, and the ones that we have in Alberta — they are the gems in all of our complexes worldwide, so we are really counting on those Canadian operations to fuel our growth in the future.”
Dow has seven facilities and 800 workers at Fort Saskatchewan, Alta., as well as a polystyrene facility in Sarnia, Ont.
Union Carbide also has a stake in HDPE producer Petromont (Montreal), a partnership with the Socit gnerale de financement du Quebec.
Globally, Union Carbide brings Dow leading technology for polyethylene technology, a leading position in polyethylene manufacturing and manufacturing capacity for polypropylene, as well as established business in specialty chemicals and intermediates.
Dow Plastics business segments include performance plastics (polyurethanes, epoxy products, engineering plastics, fabricated products), polyethylene, polystryrene, polypropylene and INSITE catalyst technology.
How will this merger affect resin markets? Ask the experts at the Canadian Plastics Resin Outlook Conference, Oct. 19, Toronto. Call Cathy Donaghy for information, 416/442-2255.