Dow Divests its Interest in VAM Plant at Cabo, Brazil
Midland, MI - November 22, 2006
The Dow Chemical Company (Dow) announced today, following a thorough evaluation of various options, that it intends to divest its interest in the vinyl acetate monomer (VAM) manufacturing facility at Cabo (State of Pernambuco), Brazil, to JB Group, located in Recife, Pernambuco, Brazil. Close of the transaction is dependent upon regulatory approval and completion of negotiations. Financial terms of the transaction were not disclosed.
“The decision to divest our interests in this plant is aligned with our ongoing drive to improve Dow’s global competitiveness,” said Philippe Raynaud de Fitte, Business Vice President, Chlor-Vinyl and VAM. “Operations at the Cabo facility do not fit with Dow’s model of integrated production--where raw material supply, manufacturing facilities and downstream derivative demand are all accessible and provide competitive advantage. The plant will have more opportunity for long-term economic improvements in the hands of JB Group.”
As part of the transaction, employees of the Cabo facility, along with equipment and site-specific assets will transfer to JB Group. Following the completion of the transaction, Dow will continue to serve as the local distributor of VAM from the Cabo plant.
“Dow remains committed to the VAM business and VAM customers in the region,” continued Raynaud de Fitte. “As always, safety, environmental performance and our commitment to our employees and customers throughout the transaction will remain our top priorities.”
“Brazil is and continues to be an important geographic region for Dow. Dow remains committed to safe and reliable operations in Brazil” said Vicente Teixeira, Human Resources and Public Affairs Director, Latin America.
VAM is an essential chemical building block used in a wide variety of industrial and consumer products. VAM is a key ingredient in emulsion polymers, resins, and intermediates used in paints, adhesives, coatings, textiles, wire and cable polyethylene compounds, laminated safety glass, packaging, automotive plastic fuel tanks and acrylic fibers.
For more information about VAM, visit www.DowVAM.com.
About The Dow Chemical Company
Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
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