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Dow Chemical to separate chlorine, epoxy assets ahead of possible sale

12.02.2013  | 

Dow Chemical said it hired financial advisers to look at options for the assets including sales, joint ventures and spinoffs. It expects to complete transactions for the assets in the next year or two.

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By SIMON CASEY
Bloomberg

Dow Chemical, the largest US chemical maker by sales, plans to separate chlorine-related assets including its epoxy business as the company focuses on higher-margin activities.

The chlorine assets account for as much as $5 billion of annual revenue and include plants at 11 sites employing almost 2,000 people, Midland, Michigan-based Dow said Monday in a statement.

Dow said it hired financial advisers to look at options for the assets including sales, joint ventures and spinoffs. It expects to complete transactions for the assets in the next year or two.

The move “represents a continuation of the shift of our company toward downstream high-margin products and technologies that customers value, and generate consistently higher returns than cyclical commodity products,” CEO Andrew N. Liveris said in the statement.

Like competing US chemical producers DuPont and Ashland, Dow is selling or considering the sale of business lines as it attempts to unlock growth. Dow said in October that WR Grace & Co. agreed to buy its polypropylene licensing and catalyst unit for $500 million. 

In October, Dow forecast $3 billion to $4 billion from asset sales in the following 18 to 24 months. The company had said previously that these assets may be sold.

Dow also said Monday that it plans to shut down about 800,000 tons of chlorine and caustic equivalent capacity in Freeport, Texas.



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THOMAS PETERSON
12.03.2013

Maybe this would be a good business for Univar, you could head it up.

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