DOW PLASTICS
Strong volume growth in 1997, but sales short of target / Successful entry into PP / "Greatest challenge" in eastern Germany
Despite strong volume growth, turnover of Dow Plastics (HQ: The Dow Chemical Company, Midland, Michigan 48674, USA) will not reach the targeted USD 10 bn (See Plasteurope.com No. 1, 1997) for 1997, Anthony J. Carbone , vice president with responsibility for the plastics business, said at a press conference in New York. Worldwide sales eased forward to DM 9.6 bn from DM 9.3 bn, as volumes widened by 7%. A similar development is predicted for 1998.
Rather than the numbers, however, Dow's focus in New York was on the breadth and the depth of its plastics activities. Never one to hide its light under a bushel, the US group spotlights itself as one of the world's largest plastics producers with one of the world's richest portfolios, ranging from engineering polymers to polyurethanes. It has not shrunk back from entering highly contested but still growing markets as a newcomer. PP and PET, both of which is is pursuing in eastern Germany, are two examples. Dow's strategy for success in PP, said Carbone, is its "extremely customer-orientation and its tailor-made product mix".
Effective immediately, Dow is selling its polypropylene worldwide under the new trade name "Inspire". The group's intention to introduce a metallocene PP in a relatively short time underscores its intention to be an important player in this market. The 200,000 t/y plant at Buna Sow Leuna Olefinverbund GmbH (BSL, D-06248 Schkopau) in eastern Germany will go onstream as expected in Q 1 1998. Production of PET is expected to start in late 1998.
Commenting on the European Commission's recently reopened investigation of possible irregularities in Dow's takeover of BSL, Carbone said the group does not believe it violated any provisions of the EU-approved contract. Along with suggestions that agreed capacity limits for some petrochemical feedstocks may have been exceeded, Brussels also has hinted that the German government may be subsidising energy prices at BSL. Carbone said Dow sees the reconstruction of the eastern German businesses as one of its "greatest challenges." - See Plasteurope.com No. 1, 1998 for more details on the Dow press conference.
READER SERVICE: Comprehensive press information in English on Dow Plastics' worldwide strategy :PIE-No. 41858. "Guide to New Products and Technologies, December 1997":PIE-No. 41859.
Rather than the numbers, however, Dow's focus in New York was on the breadth and the depth of its plastics activities. Never one to hide its light under a bushel, the US group spotlights itself as one of the world's largest plastics producers with one of the world's richest portfolios, ranging from engineering polymers to polyurethanes. It has not shrunk back from entering highly contested but still growing markets as a newcomer. PP and PET, both of which is is pursuing in eastern Germany, are two examples. Dow's strategy for success in PP, said Carbone, is its "extremely customer-orientation and its tailor-made product mix".
Effective immediately, Dow is selling its polypropylene worldwide under the new trade name "Inspire". The group's intention to introduce a metallocene PP in a relatively short time underscores its intention to be an important player in this market. The 200,000 t/y plant at Buna Sow Leuna Olefinverbund GmbH (BSL, D-06248 Schkopau) in eastern Germany will go onstream as expected in Q 1 1998. Production of PET is expected to start in late 1998.
Commenting on the European Commission's recently reopened investigation of possible irregularities in Dow's takeover of BSL, Carbone said the group does not believe it violated any provisions of the EU-approved contract. Along with suggestions that agreed capacity limits for some petrochemical feedstocks may have been exceeded, Brussels also has hinted that the German government may be subsidising energy prices at BSL. Carbone said Dow sees the reconstruction of the eastern German businesses as one of its "greatest challenges." - See Plasteurope.com No. 1, 1998 for more details on the Dow press conference.
READER SERVICE: Comprehensive press information in English on Dow Plastics' worldwide strategy :PIE-No. 41858. "Guide to New Products and Technologies, December 1997":PIE-No. 41859.
31.12.1997 Plasteurope.com [18927]
Published on 31.12.1997