Dow & Union Carbide Merger Creates Leading Polyethylene and Ethylene Glycol Producer in Canada's Chemical Industry

13-Feb-2001

A leading polyethylene and ethylene glycol producer in Canada was created today when The Dow Chemical Company announced the completion of its merger with Union Carbide Corporation.

"The structure of the new company will forge together a significant Canadian industrial capacity for polyethylene and ethylene glycol," said Dennis Lauzon, president and chief executive officer, Dow Chemical Canada Inc. "The vast majority of the output of polyethylene and ethylene glycol will be exported, primarily to Asia and the United States, fulfilling one of Canada's key objectives of upgrading and adding value to its key natural resources."

With the merger, Dow becomes the world's leading chemicals, plastics and agricultural products company. The merged company sells to customers in more than 160 countries and employs about 50,000 people.

Transgressing planetary boundaries: A crisis wake-up call for chemistry

An international group of scientists propose how chemistry can limit excessive biogeochemical flows and achieve sustainability

Read news

Said Lauzon, "This merger will now set the standard for the chemical industry around the world. With the combined leading-edge technologies and state-of-the-art facilities the new Dow has incredible long-term potential for innovation, growth and enhanced shareholder value.

"This merger is a great fit for Dow's overall growth strategy and will substantially increase Dow's product range and geographic scope of operation and help us to be better able to provide our customers with the widest range of quality products and services. It is great news for Dow globally and here in Canada."

In the merger, Union Carbide becomes a wholly owned subsidiary of The Dow Chemical Company. Dow Chemical Canada Inc., headquartered in Calgary, Alberta, is a wholly owned subsidiary of The Dow Chemical Company.

Dow now has manufacturing locations in Sarnia and Weston in Ontario, Prentiss and Fort Saskatchewan in Alberta, and Varennes in Quebec. Polyethylene is produced in Fort Saskatchewan, Prentiss and Sarnia. Ethylene glycol is produced in Fort Saskatchewan and Prentiss.

"The merger doubles the size of Dow's polyethylene capacity in Alberta," said Lauzon, "which we believe is good news for our customers and for consumers who use products with polyethylene in them every day … products such as storage bags for sandwiches, plastic wrap and food packaging.

"Now that the merger has been finalized, our next step will be to integrate the operations of the two companies as quickly as possible and ensure a smooth transition for our employees and customers," he said. The plan for the merger was first announced in August 1999, with Union Carbide shareholders approving the plan in December 1999.

Concluded Lauzon, "Dow Canada, and Dow globally, is a company committed to Responsible Care®, the principles of sustainable development, environmental protection, and the safe and responsible production, distribution and use of chemical products. That focus will be maintained and further strengthened after the merger, and throughout the new Dow."

https://www.chemeurope.com/en/news/1274/dow-union-carbide-merger-creates-leading-polyethylene-and-ethylene-glycol-producer-in-canada-s-chemical-industry.html