 | |
| Company type | Public |
|---|---|
| DJIA component (2019-2024) | |
| Industry | Chemicals |
| Founded | 1897; 128 years ago (1897) (original company) April 1, 2019; 6 years ago (2019-04-01) (current iteration) |
| Founder | Herbert Henry Dow |
| Headquarters | Midland, Michigan, U.S. |
Area served | Worldwide |
Key people |
|
| Products | Chemicals,plastics, performance chemicals,catalysts,coatings,hydrocarbon exploration |
| Revenue |  US$42.96 billion (2024) |
 US$1.60 billion (2024) | |
| US$1.12 billion (2024) | |
| Total assets | US$57.31 billion (2024) |
| Total equity | US$17.36 billion (2024) |
Number of employees | c. 36,000 (2024) |
| Subsidiaries |
|
| Website | dow |
| Footnotes / references [1] | |
TheDow Chemical Company is an Americanmultinational corporation headquartered inMidland, Michigan, United States. The company was among the threelargest chemical producers in the world in 2021.[2] It is theoperating subsidiary ofDow Inc., a publicly tradedholding company incorporated underDelaware law.[3]
With a presence in approximately 160 countries, it employs about 36,000 people worldwide.[1] Dow has been called the "chemical companies' chemical company",[4] referring to its sales to other industries rather than sales made directly to end-use consumers. Dow is a member of theAmerican Chemistry Council.[5]
In 2015, Dow and fellow chemical company,DuPont, agreed to a corporate reorganization involving the merger of Dow and DuPont followed by a separation into three different entities. The plan commenced in 2017, when Dow and DuPont merged to form DowDuPont, and was finalized in April 2019, when the materials science division was spun off from DowDuPont and took the name of the Dow Chemical Company.[6][7][8][9]
Dow was founded in 1897 by chemistHerbert Henry Dow, who invented a new method of extracting thebromine that was trapped underground inbrine at Midland, Michigan.[10] The company originally sold onlybleach andpotassium bromide, achieving a bleach output of 72 tons a day in 1902.[11] Early in the company's history, a group ofBritish manufacturers tried to drive Dow out of the bleach business by cutting prices.[12] Dow survived by also cutting its prices and, although losing about $90,000 in income, began to diversify itsproduct line.[13]
In 1905, German bromide producers began dumping bromides at low cost in the U.S. in an effort to prevent Dow from expanding its sales of bromides in Europe. Instead of competing directly for market share with the German producers, Dow bought the cheap German-made bromides and shipped them back to Europe. This undercut his German competitors.[14] Even in its early history, Dow set a tradition of rapidly diversifying its product line. Within twenty years, Dow had become a major producer ofagricultural chemicals, elementalchlorine,phenol and otherdyestuffs, andmagnesium metal.[citation needed] Dow hiredCharles J. Strosacker, anotherCase alumni, in 1907.[15]
DuringWorld War I, Dow supplied many war materials that the United States had previously imported from Germany. Dow producedmagnesium for incendiary flares,monochlorobenzene andphenol for explosives, and bromine for medicines and tear gas. By 1918, 90 percent of Dow's production was geared towards the war effort.[16] At this time, Dow created the diamond logo that is still used by the company.[17] After the war, Dow continued research in magnesium, and it developed refined automobile pistons that produced more speed and better fuel efficiency. The Dowmetal pistons were used heavily in racing vehicles, and the 1921 winner of theIndianapolis 500 used the Dowmetal pistons in his vehicle.[16]
H. H. Dow died October 15, 1930, fromcirrhosis of the liver[18] while receiving treatment at theMayo Clinic in Minnesota.[19] He had personally received over 90 patents[20] and was awarded thePerkin Medal the January before his death.[21]
Willard Dow was born in 1897, the year his father founded Dow Chemical. He was the oldest boy and his father required him to work in every department at the Midland plant to expand his knowledge of the company. In 1922, Willard was named a company director and became general manager of the Dow plant in 1926.[19] When his father died, Willard was just 33, but he proved himself capable of successfully operating the company.[19] Strosacker was appointed to Dow's board of directors.[22]Dow invested heavily in research and development during theGreat Depression.[23]
In the 1930s, Dow began producing plastic resins, which would grow to become one of the corporation's major businesses. Its first plastic products wereethylcellulose, made in 1935, andpolystyrene, made in 1937.[11]
In just eight months from 1940 to 1941, Dow built its first plant inFreeport, Texas, to producemagnesium extracted fromseawater rather than undergroundbrine.[24] The Freeport plant is Dow's largest site, and the largest integrated chemical manufacturing site in the country.[25] The site grew quickly – with power, chlorine, caustic soda and ethylene also soon in production.[26] When Japanattacked Pearl Harbor in December, the plant was the primary source of magnesium in the United States.[23]After the attack, the U.S. government asked Dow to step up its magnesium production. Dow doubled its capacity in Freeport, built a second plant in Velasco, Texas, and added two new plants on the shores of Lake Michigan and Lake Huron in Michigan. In 1942, a critical year in gaining air supremacy over Europe, Dow-operated plants produced 84 percent of the nation's magnesium output.[23]Magnesium was required to manufacture lightweight parts foraircraft.[27]Growth of this business made Dow a strategic company during World War II.[27]
When the second world war began, access to natural rubber was essentially terminated.Polybutadiene was thesynthetic rubber selected for use by the federal government. The product is made fromButadiene andStyrene. Dow was the only styrene producer in the United States.[23] In 1942, Dow agreed to provide the government with assistance to enable the U.S. to produce synthetic rubber during the war. Dow also operated several plants at the government's request to supply synthetic rubber to their armed forces.[23]Dow began its foreign expansion with the formation of Dow Chemical of Canada inSarnia, Ontario to produce styrene for use in synthetic rubber.[28]
Dow produced several plastics used by the military in World War II, such as Ethocel, foamed polystyrene (marketed as styrofoam), andSaran, later sold to consumers as Saran Wrap.[23][29]
In 1943, Corning Glass Works (nowCorning Inc.) and Dow formedDow Corning, established to exploresilicone products for military use. Their first product was Dow Corning® 4 Compound, an ignition-sealing compound that allowed airplanes to fly at high-altitudes. After the war, Dow Corning began producing products for civilian use and became the largest producer of silicone products in the world.[23]
The Ethyl-Dow Chemical Co. plant atKure's Beach, NC, the only plant on the East Coast producingbromine from seawater, was attacked by a German U-boat in 1942.[30]
Carl Gerstacker was discharged from the Army in 1946 as a Major[31] and returned to Dow in Midland. He was a production engineer[32] before the war, but his military service provided experience in problem solving and managing the finances and operations of numerous facilities producing war material. He shifted to finance and accounting and ascended the corporate ladder quickly. He was added to Dow's board of directors in 1948[33]
Dow President and CEOWillard Dow died in an airplane crash on March 31, 1949.Leland Doan was named Dow president; Earl Bennett, father-in-law of Willard's brother (Alden B. Dow) became board chairman; general manager was Dr. Mark Putnam; Calvin Campbell was named secretary and Carl Gerstacker was selected as treasurer.[19]
When Leland Doan became president of Dow in 1949, the world was evolving rapidly. One of Doan's first tasks was to reorganize the company and oversee its diversification and expansion. As war production changed to a normal economy, residential construction boomed. In 1960, almost two-thirds of Americans owned their homes.[34] As the consumer economy grew, so did the demand for household products. Dow had always sold products to other companies but recognized an opportunity and quickly developed a catalog of products for consumer use.[34]
Doan created Dow's biggest product diversification and expanded their markets. Department heads were given more authority, and he expanded his sales force and trained them to analyze their markets and the production process. A news release announced $25 million for expansion into plastic products. New facilities were planned for 1951 with a $100 million budget.[35]Gerstacker was named vice-president in 1955 and joined Dow's executive committee the following year. He was named chairman of the board in 1960.[32] Leland Doan reached Dow's mandatory retirement age in 1962 and stepped down. During his 13 years at the helm, employment at Dow more than doubled to 31,000 from 14,000, and sales soared to $890 million from $200 million.[36][37]
Ted Doan rapidly climbed the company ladder and followed his father, becoming president when he was 40 years old.[34] Doan immediately integrated disparate company branches to create an efficient organization focused on growth and expansion outside the U.S.His goal was to increase company earnings 10% each year.[38] Dow sales surpassed $1 billion in 1964.[34]Doan began an open-door policy for employees, placed higher emphasis on research, and held the attitude that their employees were the company's strength. Those policies continued after Doan's departure from Dow.[39]Doan periodically visited the research labs at Dow and was always interested in the work of each employee.[39]
Trioka is Russian term for a wagon pulled by a team of three horses abreast. Doan formed a management trioka with Gerstacker responsible for finance and marketing,Ben Branch in charge of international business and manufacturing, and Doan managing everything else. The three met every other week on Monday mornings. Once each year they would retreat for a week to determine company strategy for the next year and evaluate all 300 senior managers. Upon their return, and personnel changes were effected.[38]
When Dow realized that constructing manufacturing facilities in other countries created demand, they began producing plastics in Germany, Greece, Spain and Italy. The largest investment was in theNetherlands, atTerneuzen. That chemical complex opened in 1965. Plants were also built in South America: Argentina and Colombia plusNew Zealand.[34]With extensive operations all around the world, Doan and his managers had a meeting in 1965 where they acknowledged the need to decentralize. They established a headquarters on every continent to manage business. Dow Europe, Dow Latin America and Dow Pacific were established in 1966.Technology centers were also established for 33 key products.[34]
Doan stepped down from Dow in 1971 when global sales had achieved $2 billion[34] and Doan proclaimed that he and Dow were "healthy as horses".[38] He believed that competent younger employees should be placed in senior positions because they have the new ideas and energy to advance the company. Doan and Gerstacker established a policy that presidents, CEOs and board chairpersons must relinquish their post at age of 60 and retire from the company at 65. The five-year period became known as "deceleration".[40] It really wasn't "retirement" for him; he was only 48. He remained on Dow's board of directors andDow Corning Corporation's board until 1987.[41]
In 1971 Ben Branch became president and CEO.[42]
In the post-war era, Dow began expanding outside of North America, founding its first overseas subsidiary inJapan in 1952, and in several other nations soon thereafter. Based largely on its growing plastics business, Dow opened a consumer products division, beginning with Saran wrap in 1953.[43]
From 1951 to 1975, Dow managed theRocky Flats Plant nearDenver, Colorado. Rocky Flats was a nuclear weapons production facility that producedplutonium triggers forhydrogen bombs.[44]
Contamination from fires andradioactive waste leakage plagued the facility under Dow's management. In 1957 a fire burned plutonium dust in the facility and sent radioactive particles into the atmosphere.[44]
The Department of Energy transferred management of the facility toRockwell International in 1975.[44] In 1990, nearby residents filed a class action lawsuit against Dow and Rockwell for environmental contamination of the area; the case was settled in 2017 for $375 million.[45] According to the Appellate Court, the owners of the 12,000 properties in the class-action area had not proved that their properties were damaged or they had suffered bodily injury.[46]
TheUnited States military usednapalm bombs during theVietnam War until 1973. Dow was one of several manufacturers who began producing the napalm B compound under government contract from 1965. After experiencing protests and negative publicity, the other suppliers discontinued manufacturing the product, leaving Dow as the sole provider. The company said that it carefully considered its position, and decided, as a matter of principle, "its first obligation was to the government".[47] Despite aboycott of its products by anti-war groups and harassment of recruiters on some college campuses, Dow continued to manufacture napalm B until 1969.[47]
Agent Orange, a chemicaldefoliant containingdioxin, was also manufactured by Dow inNew Plymouth, New Zealand, and Midland, Michigan, in the United States for use by theBritish military during theMalayan Emergency and the U.S. military during the Vietnam War. In 2005, a lawsuit was filed by Vietnamese victims of Agent Orange against Dow andMonsanto Co., which also supplied Agent Orange to the military. The lawsuit was dismissed.[48] In 2012,Monsanto agreed to a $93 million settlement as a result of a case pursued by ex-Monsanto employees and citizens in the city of Nitro, WV. In 1949, a chemical plant in Nitro experienced an explosion that damaged a tank containing2,4,5-T, one of the composites that is used in the production of Agent Orange. The settlement of the case included $9 million for the cleanup of affected homes in the area, and $84 million to cover the medical monitoring and treatment of people affected by the explosion, as well as legal costs for the claimants. No care has been given for the in state damage done by the Headquarters in Midland, Michigan, and they refuse to give the evidence to the community.[49]
A major manufacturer of siliconebreast implants,Dow Corning (Dow Chemical's Joint Venture withCorning Inc.) was sued for personal damages caused by ruptured implants. On 6 October 2005, all such cases pending in the District Court against the company were dismissed. A number of large, independent reviews of the scientific literature, including theInstitute of Medicine in theUnited States, have subsequently found that silicone breast implants do not cause breast cancers or any identifiable systemic disease.[50][51]
The Bhopal disaster occurred at a pesticide plant owned by Union Carbide India Ltd., a subsidiary ofUnion Carbide, in 1984. A gas cloud containing methyl isocyanate and other chemicals spread to the neighborhoods near the plant where more than half a million people lived. The government ofMadhya Pradesh confirmed 3,787 deaths related to the gas release. The leak caused 558,125 injuries, including 38,478 temporary partial injuries and approximately 3,900 severely and permanently disabling injuries.[52] Union Carbide was sued by theGovernment of India and agreed to an out-of-court settlement of US$470 million in 1989. Dow Chemical acquired Union Carbide in 2001. Activists want Dow Chemical to clean up the site which is now controlled by the state ofMadhya Pradesh.
Until the late 1970s, Dow producedDBCP (1,2-dibromo-3-chloropropane), a soil fumigant, andnematicide, sold under the names the Nemagon and Fumazone. Plantation workers who alleged that they were sterilized or suffered other afflictions subsequently sued both Dow andDole Foods in Latin American courts. The cases were marred by extensive fraud, including the falsification of test results and the recruitment of plaintiffs who had never worked at Dole plantations.[53] While Nicaraguan courts awarded the plaintiffs over $600 million for damages, they have been unable to collect any payment from the defendants. A group of plaintiffs then sued in the United States, and, on 5 November 2007, they were awarded $3.2 million by a jury in Los Angeles. Dole and Dow vowed to appeal the decision.[54] On 23 April 2009 the two cases against Dole and Dow were thrown out by a judge in Los Angeles due to fraud and extortion by lawyers in Nicaragua recruiting fraudulent plaintiffs to make claims against the company.[55] The ruling casts doubt on $2 billion in judgments in similar lawsuits.[56]
In February 2013 a federal court rejected two tax shelter transactions entered into by Dow that created approximately $1 billion in tax deductions between 1993 and 2003. The court wrote that the transactions were "schemes that were designed to exploit perceived weaknesses in the tax code and not designed for legitimate business reasons". The schemes were created byGoldman Sachs and the law firm ofKing & Spalding, and involved creating a partnership that Dow operated out of its European headquarters in Switzerland.[57][58] Dow stated that it had paid all tax assessments with interest. The case was against the Internal Revenue Service seeking a refund of the taxes paid.[59] The case was appealed to the 5th Circuit court, where Dow's claims were again rejected. Dow has petitioned for anen banc hearing by the 5th Circuit, arguing that the decision was contrary to established case law.[60]
Dow Chemical was implicated in a price-fixing scheme that inflated the cost ofpolyurethane for customers. The U.S. Justice Department closed an investigation in 2007 without charges or recommendations, but a class-action civil lawsuit won at a jury trial in 2013. Dow settled the suit in 2016 for $835 million.[61]
In the early 1990s, Dow embarked on a major structural reorganization.[62] The former reporting hierarchy was geographically based, with the regional president reporting directly to the overall company president and CEO. The new organization combines the same businesses from different sites, irrespective of which region they belong (i.e. the vice president for Polystyrene is now in charge of these plants all over the world).[63][64][65]
In 1998,S. C. Johnson & Son purchased Dow Chemical's DowBrands consumer products division, based inIndianapolis. The two business units includedHome Food Management withZiploc,Saran and Handi-Wrap;Home Care ProductsFantastik,Scrubbing Bubbles and Spray'N Wash.[66] The sale reflected a shift in Dow's business focus by concentrating on specialty and industrial materials.[67]
At the beginning of August 1999, Dow agreed to purchaseUnion Carbide Corp. (UCC) for $9.3 billion in stock.[68] At the time, the combined company was the second largest chemical company, behind DuPont.[69] This led to protests from somestockholders, who feared that Dow did not disclose potentialliabilities related to the Bhopal disaster.[70]
William S. Stavropoulos served as president and chief executive officer of Dow from 1995 to 2000, then again from 2002 to 2004.[71] He relinquished his board seat on 1 April 2006, having been a director since 1990 and chairman since 2000. During his first tenure, he led the purchase of UCC, which proved controversial, as it was blamed for poor results under his successor as chief executive officer, Mike Parker.[72] Parker was dismissed and Stavropoulos returned from retirement to lead Dow.[73][74]
On 31 August 2006, Dow announced that it planned to close facilities at five locations:[75]
In 2006, Dow formed the Business Process Service Center (BPSC).
In December 2007, Dow announced a series of moves to revamp the company. A 4 December announcement revealed that Dow planned to exit the automotive sealers business in 2008 or 2009.[86] Within several weeks, Dow also announced the formation of a joint venture, later named K-Dow, with Petrochemical Industries Co. (PIC), a subsidiary ofKuwait Petroleum Corporation. In exchange for $9.5 billion, the agreement included Dow selling 50-percent of its interest in five global businesses: polyethylene, polypropylene and polycarbonate plastics, and ethylenamines andethanolamines.[87] The agreement was terminated by PIC on 28 December 2008.[88]
On 10 July 2008, Dow agreed topurchase all of thecommon equity interest ofRohm and Haas Co. for $15.4 billion, which equated to $78 per share.[89] The buyout was financed with equity investments of $3 billion byBerkshire Hathaway Inc. and $1 billion by theKuwait Investment Authority.[90] The purpose of the deal was to move Dow Chemical further intospecialty chemicals, which offer higher profit margins than thecommodities market and are more difficult to enter for the competition.[citation needed] The purchase was criticized by many onWall Street who believed Dow Chemical overpaid (about a 75 percent premium on the previous day's market capital) to acquire the company; however, the high bid was needed to ward off competing bids from BASF.[91] The transaction to purchase the outstanding interest of Rohm and Haas was closed on 1 April 2009.[92]
On 8 December 2008, Dow announced that due to the2008 financial crisis, it would accelerate job cuts resulting from its reorganization. The announced plan included closing 20 facilities, temporarily idling 180 plants, and eliminating 5,000 full-time jobs (about 11 percent of its work-force) and 6,000 contractor positions.[93]
Citing the globalrecession that began in the latter half of 2008, the Kuwaiti government scuttled the K-Dow partnership on 28 December 2008.[94] The collapse of the deal dealt a blow to Dow CEOAndrew Liveris' vision of restructuring the company to make it lesscyclical. However, on 6 January 2009 Dow Chemical announced they were in talks with other parties who could be interested in a major joint venture with the company.[95] Dow also announced they that it would be seeking to recover damages related to the failed joint venture from PIC.[95]
After the K-Dow deal collapsed, some speculated that the company would not complete the Rohm & Haas transaction, as the cash from the former transaction was expected to fund the latter.[96] The deal was expected to be finalized in early 2009 and was to form one of the nation's largest specialty chemicals firms in the U.S.[97][98][99] However, on 26 January 2009 the company informed Rohm and Haas that it would be unable to complete the transaction by the agreed upon deadline.[100] Dow cited a deterioratedcredit market and the collapse of the K-Dow Petrochemical deal as reasons for failing to timely close the merger. Around the same time, CEO Andrew Liveris said a first- time cut to the company's 97- year- olddividend policy was not "off the table". On 12 February 2009, the company declared a quarterly dividend of $0.15/share, down from $0.42 the previous quarter. The cut represented the first time the company had diminished its investor payout in the dividend's 97-year history.[101][102]
The transaction to purchase the outstanding interest of Rohm and Haas closed on 1 April 2009.[103] After negotiating the sale ofpreferred stock with Rohm and Hass' two largest stockholders and extending their one-yearbridge loan an additional year, the company purchased Rohm and Haas for $15 billion ($78 a share) on 9 March 2009.[104]
On 12 April 2007, Dow dismissed two senior executives for "unauthorized discussions with third parties about the potential sale of the company". The two figures are executive vice presidentRomeo Kreinberg, and director and formerCFO J. Pedro Reinhard. Dow claims they were secretly in contact withJPMorgan Chase; at the same time, a story surfaced in Britain'sSunday Express regarding a possibleleveraged buyout of Dow. The two executives have since filed lawsuits claiming they were fired for being a threat to CEO Liveris, and that the allegations were concocted as a pretext.[105] However, in June 2008 Dow Chemical and the litigants announced a settlement in which Kreinberg and Reinhard dropped their lawsuits and admitted taking part in discussions "which were not authorized by, nor disclosed to, Dow's board concerning a potential LBO" and acknowledged that it would have been appropriate to have informed the CEO and board of the talks.[106]
In summer 2008, Dow sold its zoxamide business to Gowan Company. Included in the sale were the trademarks for apotato andgrapefungicide calledGavel (fungicide). It is employed by potato growers to control early and latepotato blight and is also registered inCanada for control ofdowny mildew ingrapes, except inBritish Columbia.[107]
In the fourth quarter of 2014, Dow announced new operating segments in response to its previously announced leadership changes. The company stated it would give further support to its end-market orientation and increase its alignment to Dow's key value chains – ethylene and propylene.[108]
Several plants on theGulf Coast of the US have been in development since 2013, as part of Dow's transition away from naphtha. Dow estimates the facilities will employ about 3000 people, and 5000 people during construction.[109] The plants will manufacture materials for several of its growing segments, including hygiene and medical, transportation, electrical and telecommunications, packaging,consumer durables and sports and leisure.[110]
Dow's newpropane dehydrogenation (PDH) facility in Freeport, Texas, was expected to come online in 2015, with a first 750000tonne per year unit, while other units would become available in the future.[111][112] An ethylene production facility was expected to start up in the first half of 2017.[113][114][115]
On 27 March 2015, Dow andOlin Corporation announced that the boards of directors of both companies unanimously approved a definitive agreement under which Dow will separate a significant portion of its chlorine business and merge that new entity with Olin in a transaction that will create an industry leader, with revenues approaching $7 billion.[116] Olin, the new partnership, became the largest chlorine producer in the world.[117]
On 11 December 2015, Dow announced that it would merge withDuPont, in an all-stock deal.[118] The combined company, which was known asDowDuPont, had an estimated value of $130 billion, was equally held by the shareholders of both companies, and maintained their respective headquarters in Michigan and Delaware.[118] Within two years of the merger's closure, DowDuPont was set to split into three separate public companies, focusing on the agriculture, chemical, and specialty product industries.[119] Shareholders of each company held 50% of the combined company.[120] In the new entity, Dow Chemical chief executive officerAndrew N. Liveris became executive chairman and DuPont chief executive officerEdward D. Breen became chief executive officer.[121] In January 2017, the merger was pushed back a second time pending regulatory approvals.[122]
The same day, Dow also announced that it had reached a deal to acquireCorning Incorporated's stake in their joint ventureDow Corning for $4.8 billion in cash and a roughly 40% stake inHemlock Semiconductor Corporation.[122]
In 2019, DowDuPont de-merged, formingDow Inc. The spin-off was completed on 1 April 2019, at which time Dow Inc. became an independent, publicly traded company, and the direct parent company of The Dow Chemical Company.[123] Dow Corning becameDow Silicones Corporation, a wholly owned subsidiary of Dow Chemical using the trade nameDOWSIL.[124] Also in 2019 Dow employees won an Adhesives and Sealants Council Innovation Award for "UV Curable Primer that Enables Hard to Bond INFUSE Olefin Block Copolymer Midsole Foams in High Performance Footwear".[125]
Dow Chemical has begun to shed commodity chemical businesses, such as those making the basic ingredients forgrocery bags and plastic pipes, because their profit margins are relatively low. Dow is, as of 2015, focusing its resources on specialty chemicals that earn profit margins of at least 20%.[117][126]
Areas along Michigan'sTittabawassee River, which runs within yards of Dow's main plant inMidland, were found to contain elevated levels of the cancer-causing chemicaldioxin in November 2006. The dioxin was located in sediments two to ten feet below the surface of the river, and, according toThe New York Times, "there is no indication that residents or workers in the area are directly exposed to the sites".[127] However, people who often eat fish from the river had slightly elevated levels of dioxin in their blood.[127] In July 2007, Dow reached an agreement with theEnvironmental Protection Agency to remove 50,000 cubic yards (38,000 m3) of sediment from three areas of the riverbed and levees of the river that had been found to be contaminated.[128] In November 2008, Dow Chemical along with theUnited States Environmental Protection Agency andMichigan Department of Environmental Quality agreed to establish aSuperfund to address dioxin cleanup of the Tittabawassee River,Saginaw River andSaginaw Bay.[129]
In December 2015, Dow Chemicals agreed to sell part of its globalherbicide business, which had reported falling sales for nearly a year. A portfolio of weed killers known asdinitroanilines was sold to privately heldGowan Company, a family owned company located inYuma,Arizona, which markets a variety of pesticides to the agricultural and horticultural industries.[130] The global trademarks forTreflan (pesticide)®, which can be sprayed on fieldcorn,cotton and some fruit and vegetables, were included in the sale, as well as a formulation and packaging facility inFort Saskatchewan,Alberta, Canada.[131]Edge (pesticide)®,Team (pesticide)®,Bonalan (pesticide)® andSonalan (pesticide)®, intellectual property and labels for herbicides based on the moleculestrifluralin,benfluralin andethalfluralin were also included in the sale. Annual grasses and small seeded broadleaf weeds can be controlled with these products in a wide range of crops includingcotton,beans,canola,cereals,crucifers,cucurbits, and vegetables. Dinitroanilines, are also known as "DNA herbicides", and have been commercialised at least since 1970.[131][132]
Dow is a large producer of plastics, includingpolystyrene,polyurethane,polyethylene,polypropylene, and syntheticrubber. It is also a major producer ofethylene oxide, variousacrylates,surfactants, andcellulose resins. It produces agricultural chemicals including thepesticideLorsban and consumer products includingStyrofoam. Some Dow consumer products, includingSaran wrap,Ziploc bags, andScrubbing Bubbles were sold toS. C. Johnson & Son in 1997.[133]
Performance plastics make up 25% of Dow's sales,[134] with many products designed for theautomotive andconstruction industries. The plastics includepolyolefins such aspolyethylene andpolypropylene, as well aspolystyrene used to produce Styrofoam insulating material. Dow manufacturesepoxy resin intermediates includingbisphenol A andepichlorohydrin.Saran resins and films are based onpolyvinylidene chloride (PVDC).
The Performance Chemicals (17 percent of sales) segment produces chemicals and materials forwater purification,pharmaceuticals, papercoatings, paints and advancedelectronics. Major product lines include nitroparaffins, such asnitromethane, used in the pharmaceutical industry and manufactured by Angus Chemical Company,[135] a wholly owned subsidiary of The Dow Chemical Co. Important polymers include Dowexion-exchange resins,acrylic and polystyrenelatex, as well asCarbowaxpolyethylene glycols. Specialty chemicals are used as starting materials for production of agrochemicals and pharmaceuticals.
Dow Water and Process Solutions (DW&PS) is abusiness unit which manufactures Filmtec reverse osmosis membranes which are used to purify water forhuman use in the Middle East. The technology was used during the2000 Summer Olympics and2008 Summer Olympics.[136] The DW&PS business unit remained with DowDuPont following the April 2019 spin-off.
Until June 2019,Dow AgroSciences produced a range ofinsecticides (such asLorsban),herbicides andfungicides, and also sold seed forgenetically modified plants.[137] Dow AgroSciences sold seeds commercially under the following brands: Mycogen (grain corn,silage corn,sunflowers,alfalfa, andsorghum), Atlas (soybean), PhytoGen (cotton) and Hyland Seeds in Canada (corn, soybean, alfalfa,navy beans andwheat). The Dow AgroSciences business unit was spun off intoCorteva Inc, in June 2019.[138]
Basic plastics (26 percent of sales) end up in everything fromdiaper liners to beveragebottles and oil tanks. Products are based on the three major polyolefins –polystyrene (such as Styron resins),polyethylene andpolypropylene.
Basic chemicals (12 percent of sales) are used internally by Dow as raw materials and are also sold worldwide. Markets include dry cleaning, paints and coatings, snow and ice control and the food industry. Major products include ethylene glycol,caustic soda,chlorine, andvinyl chloride monomer (VCM, for makingPVC).Ethylene oxide andpropylene oxide and the derived alcoholsethylene glycol andpropylene glycol are major feedstocks for the manufacture of plastics such aspolyurethane andPET.
The Hydrocarbons and Energy operating segment (13 percent of sales) oversees energy management at Dow.[134] Fuels and oil-based raw materials are also procured. Major feedstocks for Dow are provided by this group, includingethylene,propylene,1,3-butadiene,benzene andstyrene.
In March 2020, during theCoronavirus outbreak, Dow expanded its Europeanhand sanitizer production, providing the product free to hospitals.[139]
| Business | share |
|---|---|
| Packaging and Specialty Plastics | 51.9% |
| Industrial Intermediates and Infrastructure | 28.1% |
| Performance Materials and Coatings | 19.0% |
| Corporate | 1.0% |
| Business | share |
|---|---|
| United States | 34.4% |
| Europe, Middle East, Africa and India | 32.6% |
| Asia Pacific | 18.5% |
| Latin America | 11.6% |
| Canada | 2.9% |
For the fiscal year 2023, Dow Chemicals reported earnings of US$0.6 billion, with an annual revenue of US$44.9 billion. Dow Chemicals shares traded at over $67 per share, and its market capitalization was valued at over US$121.1 billion in September 2018.[141]
| Year | Revenue in million USD$ | Net income in million USD$ | Total Assets in million USD$ |
|---|---|---|---|
| 2016 | 48,158 | 4,318 | 79,511 |
| 2017 | 43,730 | 465 | 79,940 |
| 2018 | 49,604 | 4,641 | 83,699 |
| 2019 | 42,951 | (1,359) | 60,524 |
| 2020 | 38,542 | 1,216 | 61,470 |
| 2021 | 54,968 | 6,279 | 62,990 |
| 2022 | 56,902 | 4,558 | 60,603 |
| 2023 | 44,622 | 578 | 57,967 |
| 2024 | 42,964 | 1,116 | 57,312 |
 | This articleis missing information about on environmental spills. Please expand the article to include this information. Further details may exist on thetalk page.(June 2023) |
In 2003, Dow agreed to pay $2 million, the largest penalty ever in a pesticide case,[142] to the state of New York for making illegal safety claims related to its pesticides. The New York Attorney General's Office stated that Dow AgroSciences had violated a 1994 agreement with the State of New York to stop advertisements making safety claims about its pesticide products. Dow stated that it was not admitting to any wrongdoing, and that it was agreeing to the settlement to avoid a costly court battle.[143][144]
According to theUnited States Environmental Protection Agency (EPA), Dow has some responsibility for 96 of the United States'Superfundtoxic waste sites.[145] One of these, a former UCC uranium and vanadium processing facility nearUravan, Colorado, is listed as the sole responsibility of Dow.[146][147] The rest are shared with numerous other companies. Fifteen sites have been listed by the EPA as finalized (cleaned up) and 69 are listed as "construction complete", meaning that all required plans and equipment for cleanup are in place.[148]
In 2007, the chemical industry trade association – the American Chemical Council – gave Dow an award of 'Exceptional Merit' in recognition of longstanding energy efficiency and conservation efforts. Between 1995 and 2005, Dow reduced energy intensity (BTU per pound produced) by 22 percent. This is equivalent to saving enough electricity to power eight million US homes for a year.[149] The same year, Dow subsidiary, Dow Agrosciences, won a United Nations Montreal Protocol Innovators Award for its efforts in helping replace methyl bromide – a compound identified as contributing to the depletion of the ozone layer. In addition, Dow Agrosciences won an EPA "Best of the Best" Stratospheric Ozone Protection Award.[150] TheUnited States Environmental Protection Agency (EPA) named Dow as a 2008Energy Star Partner of the Year for excellence in energy management and reductions ingreenhouse gas emissions.[151]
In December 2022, the company was added to theDow Jones Sustainability World Index.[152]
Dow Chemical Company reported TotalCO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 33,100 Kt (+700/+2.2% y-o-y)[153] and plans to reduce emissions 15% by 2030 from a 2019 base year.[153]
| Dec 2018 | Dec 2019 | Dec 2020 |
|---|---|---|
| 36,000[153] | 32,400[153] | 33,100[153] |
The finalboard of directors of The Dow Chemical Co. were, prior to the closing of the merger with DuPont on 1 September 2017:[154]
The ten members of theboard of directors of today's iteration of Dow are:[160][161]
In July 2010, Dow became a worldwide partner of theOlympic Games. The sponsorship extended until 2020.[162][163]
In September 2004, Dow obtained the naming rights to the Saginaw County Event Center inSaginaw,Michigan; the center is now called theDow Event Center. TheSaginaw Spirit (of theOntario Hockey League) plays at the center, which also hosts events such asprofessional wrestling, live theater, and concerts.[164][165][166]
In October 2006, Dow bought the naming rights to the stadium used by theGreat Lakes Loons, aSingle-Aminor league baseball team located in its hometown ofMidland, Michigan. The stadium is calledDow Diamond. The Dow Foundation played a key role in bringing the Loons to the city.
In 2010, Dow signed a $100m (£63m) 10-year deal with theInternational Olympic Committee and agreed to sponsor the £7m Olympic Stadium wrap.[167]
Since 2014 Dow also sponsorsAustin Dillon's #3Chevrolet forRichard Childress Racing in theNASCAR Cup Series.
On 20 May 2013, Dow launched the Dow Lab Safety Academy, a website that includes a large collection of informational videos and resources that demonstrate best practices in laboratory safety.[168] The goal of the website is to improve awareness of safety practices in academic research laboratories and to help the future chemical workforce develop a safety mindset. As such, the Dow Lab Safety Academy is primarily geared toward university students. However, Dow has made the content open to all, including those already employed in the chemical industry. The Dow Lab Safety Academy is also available through the Safety and Chemical Engineering Education program, an affiliate ofAmerican Institute of Chemical Engineers (AIChE); andThe Campbell Institute, an organization focusing on environment, health and safety practices.
The Dow Lab Safety Academy is one component of Dow's larger laboratory safety initiative launched in early 2012, following a report from the U.S. Chemical Safety Board[169] that highlighted the potential hazards associated with conducting research at chemical laboratories in academic institutions. Seeking to share industry best practices with academia, Dow partnered with several U.S. research universities to improve safety awareness and practices in the departments of chemistry, chemical engineering, engineering and materials. Through the pilot programs withU.C. Santa Barbara (UCSB),University of Minnesota, andPennsylvania State University, Dow worked with graduate students and faculty to identify areas of improvement and develop a culture of laboratory safety.
In January 2011, TheNature Conservancy and The Dow Chemical Co. announced a collaboration[170] to integrate the value of nature into business decision-making. Scientists, engineers, and economists from The Nature Conservancy and Dow are working together at three pilot sites (North America, Latin America, and TBD[171]) to implement and refine models that support corporate decision-making related to the value and resources nature provides. Thoseecosystem services include water, land, air, oceans and a variety of plant and animal life. These sites will serve as a “living laboratories”, to validate and test methods and models so they can be used to inform more sustainable business decisions at Dow and hopefully influence the decision-making and business practices of other companies.[172]
Companies part-owned by Dow include:[1]
An independent panel of 13 scientists convened by the Institute of Medicine at the request of Congress has concluded that silicone breast implants do not cause any major diseases.
The agreement positions Dow as an official Worldwide Olympic Partner and the official Chemistry company for the Olympic Movement through to 2020...
| International | |
|---|---|
| National | |
| Artists | |
| Other | |
