The Dow Chemical Company Business Report FY2008

Business Highlights

Recent Years


-In 2008, BETAMATE, Dow Automotive's epoxy-based crash durable adhesive, has been selected by Audi for the A8. The Audi A8 also uses Dow Automotive adhesives for hem flanges in doors. (From a press release on June 30, 2008)

-In 2008, Dow Automotive announced that it would supply sprayable BETAPHON damping coatings and BETAGUARD sealants to PSA Peugeot Citroen. PSA decided to introduce these products on the new Citroen Berlingo and Peugeot Partner models. (From a press release on June 18, 2008)

-In 2008, Dow Automotive announced that it would supply an epoxy-based bonding solution from its BETAMATE adhesive range, especially developed for the new Jaguar XF. (From a press release on June 17, 2008)


-In March 2007, Dow Polyurethanes, a business unit of The Dow Chemical Company, announced that it plans to acquire Hyperlast Limited ("Hyperlast UK"), a leading United Kingdom polyurethanes elastomers systems business, and Autothane Limited, a leading manufacturer of advanced automotive suspension components. Hyperlast UK and Autothane Limited, subsidiaries of British Vita, specialize in the development of innovative polyurethane elastomers for engineering resins, oil and gas pipelines, and automotive industries. (From a press release on Mar 5)

Joint Ventures

<Asahi Kasei Chemicals>
-In August 2006, the Company and Asahi Kasei Chemicals Corporation announced on August 8 the conclusion of an agreement for the Company to acquire Asahi's shares in their two 50/50 joint ventures for producing polystyrene resins used for automobile interiors. By consolidating the operation to the Company, the agreement is meant to expand the polystyrene business in an increasingly competitive market in Asia. The two joint venture companies Dow is going to own entirely are Styron Asia Limited in Hong Kong, a manufacturer of polystyrene resins and SAL Petrochemical (Zhangjiagang) Co. Ltd., a marketing entity in China. The acquiring sum is not disclosed. The agreement says there is no change in a close partnership between Dow and Asahi Kasei. (From an article in the Nikkan Jidosha Shimbun on Aug. 9, 2006)


R&D Facilities

-In November 2006, Dow Chemical Japan Ltd., Shinagawa Ward, Tokyo, announced establishment of a comprehensive R&D center in Kawasaki City, Japan, where automotive and electronics materials will be developed. Operation start-up is scheduled for the first half of 2007 to consolidate its development operations spread based on functions nationwide. The Dow Group of U.S.A. opened a new automotive technical center in Kawasaki City in April this year and has worked on reestablishment of its R&D operations in Japan. This new R&D center will be built in line with these efforts. The Gotemba Laboratory will then be closed and its staff will be relocated to Kawasaki. (From an article in the Nikkan Jidosha Shimbun on Nov.17, 2006)

-In November 2006, the Company announced construction startup of its new Dow Center at the Zhangjiang Hi-Tech Park in Pudong, Shanghai, China. The Center at the site of 65,000 sq.m. will be completed in 2008. China and its surrounding area is growing as the third largest market for Dow Chemical after the U.S.A. and Germany with the 2005 sales of USD 2.3 billion (approx. 270 billion yen). The new Center will function as the general center to respond to the steep rise in customer needs in China and other Asian countries, and several hundred scientists will engage in extensive research and development in automobiles, construction materials and health/sanitary affairs. (From an article in the Nikkan Jidosha Shimbun on Nov.4, 2006)

-In June 2006, the Company will open a technical center on new processing technique to stick various natural materials such as wood, leather and denim on plastic surface in the injection molding process in Shanghai, China, starting operations in the coming August. The new method will be used for the decoration of car interiors, PCs, and outer cases of home appliances. Dow aims to capture new needs by promoting marketing in Asia especially in Japan. The new technology called "XO", has been developed by applying two-color molding to improve appearance by combining plastics of different colors. It has already been adopted by the PC sector. Dow is now developing needs in the automotive market, with the aim of having its new products adopted for door trims and steering wheels. (From a story in the Nikkan Jidosha Shimbun on June 12, 2006)

Investment Activities

Investment Outside USA

-In February 2008, the Company announced that it will open a new specialty elastomer (thermoplastic resin) plant in Thailand to meet the increasing demand from automotive industries. Its joint venture with Siam Cement Group (SCG), SCG-Dow Group, will build the new plant at the site of its Map Ta Phut Plant to start operations in 2011. Production of high-functional plastomers and elastomers will be expanded to supply customers in the Asia-Pacific region. The Engage-brand polyolefin elastomer, featuring both elasticity and toughness, is in good demand from automakers for interior and exterior parts. The company aims to meet the active demand from Japanese and Korean auto industries through this expansion. (From an article in the Nikkan Jidosha Shimbun on Feb. 2008)

-In June 2007, the Company announced that construction is underway for a new Solution Styrene Butadiene Rubber (SSBR) plant in Schkopau, Germany. Scheduled for completion in the second half of 2008, the world-scale facility will have production capacity of 60 KT.  SSBR is the fastest growing segment of the rubber market, with an anticipated annual growth rate of five to six percent over the next several years. (From a press release on June 11, 2007)

-In August 2006, the Company announced plans to expand its Chinese operation of epoxy resins used for automotive paintings and other materials. The company plans to invest more than 200 million dollars over the next five years to build a new 100,000-ton liquid epoxy resins (LER) plant and a 150,000-ton epichlorohydrin (ECH) plant, both of which are expected to start up by 2010. An exclusive LER production plant will be constructed at the site of the existing Dow facilities that manufacture converted epoxy resins in the Yangtze River International Chemical Park in Zhangjiagang. An annual production capacity of converted epoxy resins used for automobiles at the existing plant is also planned to be expanded from the current 41,000-ton to 75,000-ton in 2008. (From an article in the Nikkan Jidosha Shimbun on Aug. 11, 2006)

Investment in USA

-Major projects underway during 2007 included the construction of Dow Automotive production facilities in Midland, Michigan, and Schkopau, Germany.

-The Company announced that it will strengthen the production system of allyl chloride, a material of automotive coatings. The company will invest 16 million dollars in its production site at the petrochemical complex in Freeport,Texas to enhance the annual production capacity to 360,000 tons, an increase of 22,000 tons. The new facility will start operations in the third quarter of 2007. (From an article in the Nikkan Jidosha Shimbun on Nov. 29, 2006)