Dow Chemical Announces Further Enhancement Of Competitiveness Strategy

Dow Chemical Corporation (TheDowChemicalCompany) recently announced a strategy to further enhance its competitiveness, driven by improving the efficiency and cost-effectiveness of the global business sector, Dow Chemical Corporation (DOW) announced plans to close many assets and carry out organizational changes in specific supporting functional departments. As a result of these activities, about 1000 jobs will be withdrawn in several functional departments, regions and business sectors.

Dow is expected to generate a cost of $500 million to $600 million, including costs such as severance and asset impairment.

This will be reflected in Dow's performance in the fourth quarter of 2007.

Once these actions are fully implemented, the company expects to save about $180 million a year.

AndrewN.Liveris, chairman and chief executive of Dow, said: today's announcement reflects our commitment to cut down those business sectors that no longer generate proper value and to promote more effective implementation of the tasks of the entire organization.

He also said: "our focus on financial discipline and low cost services remains as stringent as before. We will continue to look for ways to optimize our organizational structure, asset pool and business mix to ensure Dow's competitiveness in the global arena.

Due to overcapacity, cost situation and pressure from original suppliers, Dow will produce a loss associated with its manufacturing site in Lauterbourg, France.

According to the request, the company has reached an information / consultation process with the local staff representatives on the closure plan.

In the next 9~18 months, Dow will withdraw from the automotive primer business in North America, Asia Pacific and Latin America, and will explore strategic options in Europe.

This resolution reflects the ability of the business unit to achieve this business financial expectation, which will enable the company to centralizer resources and provide more valuable technologies for the automotive industry.

As AndrewN.Liveris said, let those capital and resources that can redirect value creation and growth opportunities can be freely circulated.

Dow is a diversified chemical company, using innovative, scientific and technological power to continuously improve the basic elements that can promote human progress.

Dow provides a wide range of products and services to customers in over 175 countries, enabling customers to supply various markets with better quality products, including drinking water, food, medicine, and paints, packaging and personal care products, with an annual sales volume of US $49 billion.

Dow and its 43000 employees are convinced of the principle of sustainable development and implemented.

Dow is one of the largest manufacturers of epoxy resins and intermediates in the world. It is well known in many important applications such as coatings, electronic laminates and civil engineering.

Dow has 9 factories in the world, of which 3 are located in the Asia Pacific region, including 40 thousand and 1 kiloton factories in Zhangjiagang, China, 40 thousand tons in Japan's Golden Bay and 30 thousand tons in South Korea's annual production capacity.

Dow is also the world's leading epichlorohydrin supplier. Its production base is located in major areas and accounts for more than 1/3 of the world's capacity.