Written on 10.04.2013 - Industry
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Dow to sell PP Licensing & Catalysts and Plastics Additives units

Dow Chemical recently announced it is planning to sell assets worth nearly USD 1.5 billion over the next 18 months and has already identified two business units that will be actively marketed for divestment: its Polypropylene Licensing and Catalysts unit as well as its Plastics Additives unit.

The Polypropylene Licensing and Catalysts business unit offers technology for producing polypropylene, including Unipol PP process technology, Consista D7000 donor and SHAC catalyst with Advanced Donor Technology (ADT). The Plastics Additives business unit is a worldwide supplier of additives for vinyl, polyester, polycarbonate, and engineerings plastics/blends used in applications ranging from construction materials and packaging containers to consumer appliances and electronics, business machines and automotive parts.

According to the company, these actions are the latest in a series of steps it has taken to enhance its position in high-margin, fast-growing end-markets, while simultaneously optimising the value of assets. Since 2009, Dow has divested non-core businesses representing approximately USD 8 billion in revenue. In January 2013, the company divested the stabilisers component of its Plastics Additives business, and entered into a definitive agreement to sell its 50 % ownership in Nippon Unicar Company Limited (a Japanese joint venture in the Dow Electrical and Telecommunications business).

“We are reviewing our entire portfolio and seeking even further opportunities to optimise value: selectively pruning assets that are no longer a strategic or financial fit – all in an effort to accelerate value creation and deliver long-term, sustainable growth for the company,” said Andrew N. Liveris, Dow’s Chairman and Chief Executive Officer.