Dow to sell PP licensing and plastic additive arms
By PRW Staff
Posted 18 March 2013
Dow Chemical has announced the next stage of its “aggressive portfolio management” process, with proposals to sell its polypropylene licensing and catalysts business unit, plus its plastics additives operation.
As part of its operational review against the backdrop of a “slow-growth world” the US group said it planned to sell off nearly $1.5bn-worth (£1bn) of assets in the next 18 months.
Andrew Liveris, Dow’s chairman and chief executive, described the decision to sell the two business units as a “proof point of Dow’s rigorous focus on return on capital, and is squarely in line with commitments we made earlier this year”.
“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,” he added.
Liveris said the latest actions were part of a series of steps the group had taken to “further enhance Dow’s leadership position in high-margin, fast-growing end-markets, while simultaneously optimising the value of assets”.
Dow said that since 2009 it had sold off non-core businesses representing approximately $8bn (£5.3bn) in revenue, most recently the disposal in January of the stabilisers component of its plastics additives business.
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