15-Feb-2001 - The Dow Chemical Company

Dow to Acquire EniChem’s Polyurethanes Business

The Dow Chemical Company announced today that it has reached an agreement with Italy’s EniChem S.p.A. to acquire its polyurethanes (PU) business. Under terms of the agreement, Dow will divest Union Carbide Corporation’s 50 percent interest in Polimeri Europa, in order to satisfy the European Commission’s conditions for the approved Dow/Union Carbide merger. The transactions will close pending all required regulatory approvals.

"We’re very pleased with the acquisition of EniChem’s polyurethanes business," says Bob Wood, president of the Dow business group that includes Polyurethanes and Polyurethanes Systems. "Not only does it reinforce our focus on global polyurethanes growth, it strengthens our portfolio by enhancing our European polyol, MDI and polyurethane systems presence, also giving us our first European source for TDI."

With the addition of EniChem’s polyurethanes business, Dow expects to add approximately 118,000 metric tons of toluene-diisocyanate (TDI) capacity, 80,000 metric tons of methylene-diphenylene isocyanate (MDI) capacity, and 160,000 metric tons of polyols capacity to its global manufacturing capabilities. Dow will acquire EniChem’s polyurethanes plants in Porto Marghera (Venice), Brindisi, Priolo (Siracusa, Sicily), Italy, and in Tertre, Belgium; systems houses operations in Cardano al Campo (Varese), Italy, Erstein, France, and Osnabrueck, Germany; and research facilities located at the Porto Marghera, Brindisi, Priolo and Tertre sites.

EniChem’s polyurethanes and polyurethane systems products are used in a wide variety of flexible and rigid polyurethane foams, elastomers, adhesives and coatings. Some typical applications include furniture, footwear, mattresses, cushions, seats and other automotive applications, insulation foams for panels, etc. Sales revenue for EniChem’s polyurethanes and systems business is approximately $500 million annually.

As a leading supplier of polyurethane raw materials, Dow offers one of the broadest lines of polyurethane products and systems in the industry. The raw materials are used in rigid foams, flexible foams, adhesives, sealants, coatings, elastomers as well as many other applications.

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