The Dow Chemical Company Business Report FY2011
Business Highlights
Recent Years
Factors
1) Overall
-Sales in FY2011 increased 11.8% from 2010, representing a new Company record. Excluding the impact of divestitures, sales rose 18% compared with 2010, with double-digit gains in every geographic area and every operating segment excluding Electronic and Functional Materials.
-Sales in the emerging geographies reached 19.4 billion dollars in the year, a record for the Company. Sales in Asia Pacific surpassed 10 billion dollars for the first time in the Company's history.
-In 2011, the Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.S., a Turkey-based producer of acrylic fiber, signed a definitive agreement to form a joint venture in Turkey to manufacture and commercialize carbon fiber. Under terms of the agreement, Dow and Aksa will each hold a 50 percent stake in the joint venture. The JV will expand on Aksa's existing carbon fiber production assets in Yalova, Turkey. Total investment in the project, including third party investments, is expected to reach 1 billion dollars in five years and create up to 1,000 employment opportunities. (From a press release on December 20, 2011)
-In 2011, the Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.S. (Aksa) announced a Memorandum of Understanding (MOU) with the intent to form a joint venture to manufacture and commercialize carbon fiber. The lightweight carbon fiber based materials will contribute to improve the fuel economy of automobiles. Aksa, based in Turkey, manufactures products include acrylic fiber, technical fibers, and carbon fiber. (From a press release on June 6, 2011)
<Ube Industries>
-In 2011, Ube Industries, Ltd. announced on Dec. 15 that its U.S. subsidiary and the Dow Chemical Co. have established Advanced Electrolyte Technologies LLC, a fifty-fifty joint venture to manufacture electrolytes for lithium-ion batteries in the U.S. It will begin operations in December 2011. Headquartered in Troy, Michigan, the joint venture will establish manufacturing subsidiaries for electrolytes in the United States, China and Europe. (From an article in the Nikkan Jidosha Shimbun on December 16, 2011)
-In 2011, Ube Industries, Ltd. and Dow Chemical Company announced that they will form a joint-venture company in Michigan, U.S.A. to manufacture and sell electrolytes for lithium-ion batteries. The new entity will be called Advanced Electrolyte Technologies LLC. The two companies intend to reinforce their global business operations for lithium-ion battery technologies, demand for which is growing especially in the area of hybrid and electric vehicles. Ube Industries will license electrolyte technology to the joint venture. Advanced Electrolyte Technologies will build a new plant in Michigan in 2012, which will be followed by establishment of additional facilities in China and Europe. (From an article in the Nikkan Jidosha Shimbun on July 8, 2011)
<Saudi Aramco>
-In 2011, the Company and Saudi Arabian oil company Saudi Aramco announced the official formation of Sadara Chemical Company, a joint venture between the two companies. The new company will produce a wide range of products such as Polyurethanes, Propylene Oxide, Propylene Glycol, Elastomers, Low Density Polyethylene and Amines. (From a press release on November 28, 2011)
-In 2011, the Company and Saudi Aramco, a national oil company of Saudi Arabia, announced that they signed the Joint Venture (JV) Shareholders' Agreement for Sadara Chemical Company. Saudi Aramco and Dow announced their respective Board authorizations to form the JV on July 25, 2011. Sadara is expected to deliver annual revenues of approximately 10 billion dollars within a few years of operation. The manufacturing units will produce a wide range of products such as Polyurethanes, Propylene Oxide, Propylene Glycol, Elastomers, Low Density Polyethylene and Amines. Sadara will market products within a regional zone of eight countries, including the Kingdom. The new company will be comprised of 26 manufacturing units. First production units are expected to come on line in the second half of 2015. All units are expected to be up and running in 2016. (From a press release on October 8, 2011)
Business Partnership
-In 2011, Dow Polyurethanes, a business group of the Company and a producer of methylene diphenyl diisocyanate (MDI), announced the signing of a Letter of Intent (LOI) with Jilin Connell Chemical Industry Co., Ltd. to collaborate in the industrial production of aniline in the U.S. Jilin Connell Chemical Company is an aniline producer and distributor in China. Discussions include plant location options such as the possibility of Jilin Connell building a fence line plant at Dow's site in Freeport, Texas, U.S. (From a press release on December 5, 2011)
Recent Development in USA
-In 2011, the Company's Performance Monomers business announced an additional 15 % of Crude Acrylic Acid (CAA) capacity at its Deer Park, Texas, U.S. facility. (From a press release on November 8, 2011)
-In 2011, the Company announced that its Performance Monomers business increased production capacity at several sites. The business announced a 10 percent increase in capacity for the production of Glycidyl Methacrylate (GMA) at its Freeport, Texas, U.S. facility and a 15 percent increase in capacity for the production of 2-Ethyl Hexyl Acrylate (2-EHA) at its Hahnville, Louisiana, U.S. facility. The business also announced that capacity for the production of Crude Acrylic Acid (CAA) at its Bohlen, Germany facility has increased by 25 percent, which will be used for the production of Butyl Acrylate (BA) and Glacial Acrylic Acid (GAA) at the site. In addition, Performance Monomers has capacity expansion projects for Butyl Acrylate (BA), Ethyl Acrylate (EA) and two other Acrylic Acid units upcoming. (From a press release on October 4, 2011)
-In 2011, Dow Automotive Systems, a business unit of the Company, announced that it will double its polyurethane- and epoxy-based adhesive portfolio through 2013. Dow Automotive will split its epoxy and PU adhesives into separate brands based on their basic materials. The Company's BETAMATE brand will include epoxy-based adhesives for metal bonding. Polyurethane-based adhesives will be available under the BETAFORCE brand. (From a press release on October 4, 2011)
-In 2011, the Company announced that its Performance Monomers business plans to increase 10% in capacity for the production of Glycidyl Methacrylate (GMA) at its Freeport, Texas, U.S. facility. Primary applications for GMA include automotive and powder coatings. (From a press release on August 29, 2011)
-In 2011, the Company announced that the SCG-Dow Group, a joint venture between Dow and Siam Cement Group (SCG), has reached a milestone for the new propylene oxide (PO) facility in Thailand by ramping the plant up to stable production levels in preparation for the full capacity run scheduled for the fourth quarter of 2011. The plant, located within the Asia Industrial Estates (AIE) site near Map Ta Phut, Thailand will have a name plate capacity of 390 kilotons per annum (KTA) of PO. (From a press release on October 4, 2011)
-In 2011, the Company announced its new Thailand polyolefin elastomers plant that began commercial operation in June 2011 is operating at full capacity. The new plant is built by SCG-Dow Group, a joint venture with Siam Cement Group (SCG) of Thailand. (From a press release on October 4, 2011)
<China>
-In 2011, the Company announced that it will open an office in Chengdu, Sichuan Province, China in the first half of 2012. The new office will serve as the Company's business and sales hub in Western China. Today, the Company operates 18 manufacturing sites across the Greater China region, mainly in the Eastern and Southeastern coastal areas and Taiwan. In 2010, the Company recorded total sales of more than 4 billion dollars in Greater China, which is the Company's second largest international market. (From a press release on October 4, 2011)
<Africa>
-In 2011, the Company announced that it will expand its operations in Africa by opening sales offices in Algeria and Ghana. The new sales offices will complement existing its operations in Egypt, Kenya and South Africa, where the Company has more than 50 years of operating history and employs more than 240 people. (From a press release on October 4, 2011)
-In 2009, the Company offers IMPAXX energy absorbing foam for the 2010 Buick "LaCrosse" as part of the headliner system. IMPAXX foam is a lower cost alternative to polyurethane and polypropylene materials. (From a press release on Apr. 20, 2009)
-In 2009, the Company made tangible plans to supply its structural adhesive, which replaces spot welds, to several Japanese automakers. Its structural adhesive is expected to be used for vehicles to be launched as early as 2012. As Japanese automakers have not used structural adhesives for vehicle parts which require high strength, it will be the first case if it is actually selected. Steel sheets will be joined with the adhesive to achieve both light weight and high strength. In the beginning, vehicle models applying the adhesive will be limited. It will be used in combination with spot welding for vehicle areas where rigidity is especially required, such as floor panels and suspension parts. It will simplify the spot welding process and make use of thinner steel sheets possible as linear joint will replace spot joint. Cost and weight, therefore, will be reduced as well as oscillation and noise features will be improved. (From an article in the Nikkan Jidosha Shimbun on Apr. 10, 2009)
-In 2009, the Company announced that it provides the new Opel "Insignia" sedan with BETAMATE crash durable bonding solutions. For the new "Insignia", Dow Automotive has been designated by General Motors as supplier of crash durable adhesives for body construction. (From a press release on Mar. 11, 2009)
-In 2009, the Company developed new structural bonding solutions enabling the combination of different materials. First application of BETAMATE 2-component (2K) adhesive technologies is for bonding aluminum roofs with steel car bodies in new BMW "7 Series". This is the first time a 2K bonding system has been used to assemble an aluminium roof module. (From a press release on Mar. 10, 2009)
-In 2009, the Company announced that its crash durable adhesive was selected for use in the Audi "A8" in high recognition that the continued bond line contributes to improving the body stiffness and crash resistance performance, as well as humidity resistance and corrosion protection properties. The product selected by the Audi "A8" is "BETAMATE" produced by Dow Automotive. (From an article in the Nikkan Jidosha Shimbun on Mar. 2, 2009)
Business Overview |
(in million dollars) |
| FY2011 | FY2010 | Rate of change (%) |
Factors | |
| Overall | ||||
| Sales | 59,985 | 53,674 | 11.8 | 1) |
| EBITDA | 7,785 | 7,200 | 8.1 | - |
Factors
1) Overall
-Sales in FY2011 increased 11.8% from 2010, representing a new Company record. Excluding the impact of divestitures, sales rose 18% compared with 2010, with double-digit gains in every geographic area and every operating segment excluding Electronic and Functional Materials.
-Sales in the emerging geographies reached 19.4 billion dollars in the year, a record for the Company. Sales in Asia Pacific surpassed 10 billion dollars for the first time in the Company's history.
Joint Ventures
<Aksa Akrilik Kimya Sanayii A.S.>-In 2011, the Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.S., a Turkey-based producer of acrylic fiber, signed a definitive agreement to form a joint venture in Turkey to manufacture and commercialize carbon fiber. Under terms of the agreement, Dow and Aksa will each hold a 50 percent stake in the joint venture. The JV will expand on Aksa's existing carbon fiber production assets in Yalova, Turkey. Total investment in the project, including third party investments, is expected to reach 1 billion dollars in five years and create up to 1,000 employment opportunities. (From a press release on December 20, 2011)
-In 2011, the Company, through its wholly-owned subsidiary Dow Europe GmbH, and Aksa Akrilik Kimya Sanayii A.S. (Aksa) announced a Memorandum of Understanding (MOU) with the intent to form a joint venture to manufacture and commercialize carbon fiber. The lightweight carbon fiber based materials will contribute to improve the fuel economy of automobiles. Aksa, based in Turkey, manufactures products include acrylic fiber, technical fibers, and carbon fiber. (From a press release on June 6, 2011)
<Ube Industries>
-In 2011, Ube Industries, Ltd. announced on Dec. 15 that its U.S. subsidiary and the Dow Chemical Co. have established Advanced Electrolyte Technologies LLC, a fifty-fifty joint venture to manufacture electrolytes for lithium-ion batteries in the U.S. It will begin operations in December 2011. Headquartered in Troy, Michigan, the joint venture will establish manufacturing subsidiaries for electrolytes in the United States, China and Europe. (From an article in the Nikkan Jidosha Shimbun on December 16, 2011)
-In 2011, Ube Industries, Ltd. and Dow Chemical Company announced that they will form a joint-venture company in Michigan, U.S.A. to manufacture and sell electrolytes for lithium-ion batteries. The new entity will be called Advanced Electrolyte Technologies LLC. The two companies intend to reinforce their global business operations for lithium-ion battery technologies, demand for which is growing especially in the area of hybrid and electric vehicles. Ube Industries will license electrolyte technology to the joint venture. Advanced Electrolyte Technologies will build a new plant in Michigan in 2012, which will be followed by establishment of additional facilities in China and Europe. (From an article in the Nikkan Jidosha Shimbun on July 8, 2011)
<Saudi Aramco>
-In 2011, the Company and Saudi Arabian oil company Saudi Aramco announced the official formation of Sadara Chemical Company, a joint venture between the two companies. The new company will produce a wide range of products such as Polyurethanes, Propylene Oxide, Propylene Glycol, Elastomers, Low Density Polyethylene and Amines. (From a press release on November 28, 2011)
-In 2011, the Company and Saudi Aramco, a national oil company of Saudi Arabia, announced that they signed the Joint Venture (JV) Shareholders' Agreement for Sadara Chemical Company. Saudi Aramco and Dow announced their respective Board authorizations to form the JV on July 25, 2011. Sadara is expected to deliver annual revenues of approximately 10 billion dollars within a few years of operation. The manufacturing units will produce a wide range of products such as Polyurethanes, Propylene Oxide, Propylene Glycol, Elastomers, Low Density Polyethylene and Amines. Sadara will market products within a regional zone of eight countries, including the Kingdom. The new company will be comprised of 26 manufacturing units. First production units are expected to come on line in the second half of 2015. All units are expected to be up and running in 2016. (From a press release on October 8, 2011)
Business Partnership
-In 2011, Dow Polyurethanes, a business group of the Company and a producer of methylene diphenyl diisocyanate (MDI), announced the signing of a Letter of Intent (LOI) with Jilin Connell Chemical Industry Co., Ltd. to collaborate in the industrial production of aniline in the U.S. Jilin Connell Chemical Company is an aniline producer and distributor in China. Discussions include plant location options such as the possibility of Jilin Connell building a fence line plant at Dow's site in Freeport, Texas, U.S. (From a press release on December 5, 2011)Divestitures
-In 2011, the Company announced the close of the sale of the Company's global Polypropylene business to Braskem S.A., based in Brazil. The assets involved in the transaction included the Company's polypropylene manufacturing facilities at Schkopau and Wesseling, Germany, and Freeport and Seadrift, Texas. The Company's Polypropylene Licensing & Catalyst business and related catalyst facilities were excluded from the scope of the transaction. (From a press release on September 30, 2011)Acquisitions
-In January 2010, Dow Kokam, a manufacturer of batteries used for the vehicles, has acquired Societe de Vehicles Electriques (SVE), a wholly-owned subsidiary of the France-based Dassault. SVE, which develops battery and energy management systems, becomes a French subsidiary of Dow Kokam, and Dassault becomes a shareholder. (From a press release on January 12, 2010)Recent Development in USA
-In 2011, the Company's Performance Monomers business announced an additional 15 % of Crude Acrylic Acid (CAA) capacity at its Deer Park, Texas, U.S. facility. (From a press release on November 8, 2011)-In 2011, the Company announced that its Performance Monomers business increased production capacity at several sites. The business announced a 10 percent increase in capacity for the production of Glycidyl Methacrylate (GMA) at its Freeport, Texas, U.S. facility and a 15 percent increase in capacity for the production of 2-Ethyl Hexyl Acrylate (2-EHA) at its Hahnville, Louisiana, U.S. facility. The business also announced that capacity for the production of Crude Acrylic Acid (CAA) at its Bohlen, Germany facility has increased by 25 percent, which will be used for the production of Butyl Acrylate (BA) and Glacial Acrylic Acid (GAA) at the site. In addition, Performance Monomers has capacity expansion projects for Butyl Acrylate (BA), Ethyl Acrylate (EA) and two other Acrylic Acid units upcoming. (From a press release on October 4, 2011)
-In 2011, Dow Automotive Systems, a business unit of the Company, announced that it will double its polyurethane- and epoxy-based adhesive portfolio through 2013. Dow Automotive will split its epoxy and PU adhesives into separate brands based on their basic materials. The Company's BETAMATE brand will include epoxy-based adhesives for metal bonding. Polyurethane-based adhesives will be available under the BETAFORCE brand. (From a press release on October 4, 2011)
-In 2011, the Company announced that its Performance Monomers business plans to increase 10% in capacity for the production of Glycidyl Methacrylate (GMA) at its Freeport, Texas, U.S. facility. Primary applications for GMA include automotive and powder coatings. (From a press release on August 29, 2011)
Recent Development Outside USA
<Thailand>-In 2011, the Company announced that the SCG-Dow Group, a joint venture between Dow and Siam Cement Group (SCG), has reached a milestone for the new propylene oxide (PO) facility in Thailand by ramping the plant up to stable production levels in preparation for the full capacity run scheduled for the fourth quarter of 2011. The plant, located within the Asia Industrial Estates (AIE) site near Map Ta Phut, Thailand will have a name plate capacity of 390 kilotons per annum (KTA) of PO. (From a press release on October 4, 2011)
-In 2011, the Company announced its new Thailand polyolefin elastomers plant that began commercial operation in June 2011 is operating at full capacity. The new plant is built by SCG-Dow Group, a joint venture with Siam Cement Group (SCG) of Thailand. (From a press release on October 4, 2011)
<China>
-In 2011, the Company announced that it will open an office in Chengdu, Sichuan Province, China in the first half of 2012. The new office will serve as the Company's business and sales hub in Western China. Today, the Company operates 18 manufacturing sites across the Greater China region, mainly in the Eastern and Southeastern coastal areas and Taiwan. In 2010, the Company recorded total sales of more than 4 billion dollars in Greater China, which is the Company's second largest international market. (From a press release on October 4, 2011)
<Africa>
-In 2011, the Company announced that it will expand its operations in Africa by opening sales offices in Algeria and Ghana. The new sales offices will complement existing its operations in Egypt, Kenya and South Africa, where the Company has more than 50 years of operating history and employs more than 240 people. (From a press release on October 4, 2011)
Awards
-In 2011, the Company announced that Nippon Unicar Company, Ltd. (NUC), a 50/50 JV with Tonen Chemical, based in Japan, has received a Core Partner Award from Furukawa Electric. This is the fifth consecutive year that NUC has received this supplier award. In addition, NUC also won the "Award for Excellence" from Furukawa in the past two years. (From a press release on October 4, 2011)Contracts
-In 2009, Honda and the Company signed a partnership agreement on the production of the Japanese carmaker's new model, Honda "City", in Brazil. The Company now supplies the raw material - the INSPIRE polypropylene (PP) - for the "City", after the "Fit" and "Civic" models. The PP is used in the Instrument panel, sides of doors, column lining, seats, and other internal parts. (From a press release on Aug. 13, 2009)-In 2009, the Company offers IMPAXX energy absorbing foam for the 2010 Buick "LaCrosse" as part of the headliner system. IMPAXX foam is a lower cost alternative to polyurethane and polypropylene materials. (From a press release on Apr. 20, 2009)
-In 2009, the Company made tangible plans to supply its structural adhesive, which replaces spot welds, to several Japanese automakers. Its structural adhesive is expected to be used for vehicles to be launched as early as 2012. As Japanese automakers have not used structural adhesives for vehicle parts which require high strength, it will be the first case if it is actually selected. Steel sheets will be joined with the adhesive to achieve both light weight and high strength. In the beginning, vehicle models applying the adhesive will be limited. It will be used in combination with spot welding for vehicle areas where rigidity is especially required, such as floor panels and suspension parts. It will simplify the spot welding process and make use of thinner steel sheets possible as linear joint will replace spot joint. Cost and weight, therefore, will be reduced as well as oscillation and noise features will be improved. (From an article in the Nikkan Jidosha Shimbun on Apr. 10, 2009)
-In 2009, the Company announced that it provides the new Opel "Insignia" sedan with BETAMATE crash durable bonding solutions. For the new "Insignia", Dow Automotive has been designated by General Motors as supplier of crash durable adhesives for body construction. (From a press release on Mar. 11, 2009)
-In 2009, the Company developed new structural bonding solutions enabling the combination of different materials. First application of BETAMATE 2-component (2K) adhesive technologies is for bonding aluminum roofs with steel car bodies in new BMW "7 Series". This is the first time a 2K bonding system has been used to assemble an aluminium roof module. (From a press release on Mar. 10, 2009)
-In 2009, the Company announced that its crash durable adhesive was selected for use in the Audi "A8" in high recognition that the continued bond line contributes to improving the body stiffness and crash resistance performance, as well as humidity resistance and corrosion protection properties. The product selected by the Audi "A8" is "BETAMATE" produced by Dow Automotive. (From an article in the Nikkan Jidosha Shimbun on Mar. 2, 2009)
R&D
R&D Expenditure |
(in million dollars) |
| FY2011 | FY2010 | FY2009 | |
| Overall | 1,646 | 1,660 | 1,492 |
-In 2011, the Company announced that it has increased its investment in programs with U.S. universities with a 25 million dollars per year commitment for 10 years. The investment will be distributed among 11 institutions. Areas of research include: catalysis, process development, and new materials for application in electronics, energy, transportation, and consumer applications. (From a press release on October 4, 2011)
R&D Facilities
-In the past five years, the Company has invested in new state-of-the-art technology centers in China, Korea, the Middle East, Brazil and Spain, employing approximately 6,300 people in various research and development activities.-In 2010, Dow Brazil announced the Technology and Market Development Center for Polyurethanes in the city of Jundiai, Sao Paulo, Brazil. With investment of 2 million dollars and official opening scheduled for January 2011, the lab extends over a 1,200 square meter area and will provide a number of services, including chemical and physical chemical analyses; equipment to simulate production of a wide range of PU applications; characterization of physical properties and preparation of samples to customers. (From a press release on November 29, 2010)
-In June 2009, the Company announced that it opened the Shanghai Dow Center in China. The Center, a hub in the Asia Pacific region, is comprised of the Company's regional headquarters and a R&D facility. The Company will develop solutions for multiple industries such as transportation, energy and electronics. In the transportation segment, the study will be focused on improved safety and fuel consumption in automobiles. (From a press release on June 2, 2009)
Technological Alliance
-In 2011, the Company said it has reached an agreement with Quantum Fuel Systems Technologies Worldwide, Inc. to jointly develop plug-in hybrid electric trucks. Quantum Fuel Systems develops and produces energy storage technologies and alternative fuel vehicles. The two companies will work on converting the conventional Ford "F-150" trucks to PHEV trucks, using the Dow Group's lithium-ion battery technology and Quantum Fuel's hybrid electric powertrain system. After completing the development program, Dow intends to introduce more than 100 PHEV trucks to its own use by the end of 2012. The PHEV trucks have a range of 35 miles (56 kilometers) on an electric battery alone. The lithium-ion batteries will be supplied by Dow Kokam, which is a joint venture by Dow, Dassault and TK Advanced Battery. Conversion to PHEV trucks will be completed in phases beginning in December 2011. The Company is installing charging stations at its facilities for the PHEV trucks. Its charging stations will be also accessible to employees with all varieties of electric vehicles. (From an article in the Nikkan Jidosha Shimbun on June 8, 2011)-In June 2009, PolyOne Corporation and the Company announced their agreement for the development and commercialization of PolyOne's color and additive concentrates in combination with Dow Automotive's natural thermoplastic resins for automotive use in Europe. PolyOne, headquartered in Ohio, U.S.A., is a provider of polymer materials. (From a press release on June 24, 2009)
R&D Activities
-In 2011, the Company and the U.S. Department of Energy's (DOE) Argonne National Laboratory announced the signing of a Memorandum of Understanding (MOU) for a multi-year research collaboration to jointly develop the next generation of materials for advanced battery technologies. The Company and Argonne will be collaborating on several new materials with the intent to improve the performance, cost competitiveness and adoption of these advanced materials in the energy storage industry. (From a press release on October 4, 2011)Product Development
Acoustical foam formulation-In 2011, Dow Automotive Systems, a business unit of the Company, developed a soy-oil containing acoustical foam formulation with renewable content, which is supported by a grant from the United Soybean Board. Developed under the trade name BETAFOAM Renue, the new formulation is now in trials with a major North American OEM and commercialization is expected by December 2011. Similar to traditional BETAFOAM acoustical foams, BETAFOAM Renue can be injected into vehicle cavities like A, B, C pillars and rocker panels to reduce air and road noise. The foam replaces baffles traditionally used in these areas and is also low density to reduce overall vehicle weight. (From a press release on October 4, 2011)
New Bonding system
-In March 2009, Dow Automotive announced that it developed a new bonding system for the structural bonding of aluminum roofs with steel car bodies. The company said the new technology was applied on the new BMW "7series". The adhesive system is flexible enough to offset the different expansion coefficients of two materials while guaranteeing the necessary structural system stability at even higher temperatures. The technology, which is based on the Company's BETAMATE 2K PU adhesive range, was developed through a joint project with BMW. According to the Company, this is the first time a 2K bonding system has been used on the assembly line for aluminum roof modules. The Company achieved the high bonding performance and heat-resistance property due to the improved glass transition temperature (Tg) of its new 2-component (2K) PU adhesives. The bonding technology enables the combination of different materials for lightweight solutions, greatly helping automakers' efforts to reduce weight of car bodies. (From an article in the Nikkan Jidosha Shimbun on Mar. 25, 2009)
Investment Activities
Capital Expenditure |
(in million dollars) |
| FY2011 | FY2010 | FY2009 | |
| Overall | 2,687 | 2,130 | 1,683 |
-In 2011, the Company announced that it will initiate a feasibility study for the construction of a new plant for the production of metallocene ethylene propylene diene monomer (EPDM), sold under the trademark of NORDEL IP Hydrocarbon Rubber. End-use applications for NORDEL IP include automotive weather-stripping, automotive hoses and belts and other rubber products. (From a press release on October 4, 2011)
Investment Outside USA
<Thailand>-In December 2010, the Company announced plans to build a propylene glycol (PG) plant at the Map Ta Phut, Thailand site, with a production capacity of 150 KTA. The PG plant is currently on-track in the design process. (From a press release on October 4, 2011)
-In August 2009, the Company announced that its new, joint-venture, specialty elastomers plant under construction in Thailand is expected to start operations in early 2011. The Europe-U.S.-Asia trilateral framework will be established with the Group's first plant in Thailand concurrently its largest elastomers plant in Asia. The new plant is built by SCG-Dow Group, a joint venture with Siam Cement Group (SCG), in the Asia Industrial Estate in Rayong Province. Construction is on track and mass production is expected to commence in a year and a half to output ENGAGE Polyolefin Elastomers and AFFINITY Polyolefin Plastomers. ENGAGE is used for various applications including automotive thermoplastics. AFFINITY offers excellent processability at high and low temperatures and is used for packaging and other applications.(From an article in the Nikkan Jidosha Shimbun on Aug. 18, 2009)
<Scotland>
-In 2011, Dow Plastics Additives, a business unit of the Company, announced the construction of additional equipment at its Grangemouth, Scotland, manufacturing facility. The expansion will significantly increase the capacity of methyl-methacrylate butadiene styrene (MBS) based additives. The expansion is expected to be fully operational during the fourth quarter of 2011. The facility will increase the Company's capacity for MBS-based additives by 10,000 tons per year. Dow Plastics Additives manufactures PARALOID EXL additives for engineering resins used in consumer durables and transportation applications at the Grangemouth site. (From a press release on August 4, 2011)