Dow Sarnia Site Completes Review of Infrastructure

Sarnia, Ontario - April 14, 2005

Following the January 18th announcement that Dow would be mothballing its Product Development Plant, a related infrastructure review was conducted to determine the appropriate structure and resources allocation to fit Dow Sarnia's business reality - that of a small site. According to Glen Mutscher, Site Operations Director, "For the production units remaining on site it was essential that all aspects of our operations were reviewed to ensure the most competitive structure possible. This meant a detailed look at all business operations and the services that provide support to those businesses." The review which has been underway since late January will result in a number of changes on site including the reduction of approximately 55-65 positions from within the salary and wage workforce. These changes will occur during 2005-06.

"We are hopeful that through attrition we will be able to minimize the potential for lay-offs and involuntary job loss however, there is always that potential," said Mutscher. "We will be working with our employees, leadership, Human Resources, and the Union - using our Relationship by Objectives (Dow/Union) process within the parameters of the recent Collective Agreement. This is never easy and we have a workforce in Sarnia which has time and time again shown itself to be dedicated, hard-working and able to adapt to change. That is what makes this all the more disappointing. It is however the reality with which we are faced."

Mutscher went on to reference the unrelenting challenge volatile feedstocks presents to industry and how it channels through to Dow businesses. "They [the businesses] are under constant pressure to achieve the most advantageous cost position and, as a site, we need to help our businesses compete in this environment."

Dow Sarnia operates four production units in Sarnia in addition to its Hydrocarbons Storage Wells: Polystyrene, Low Density Polyethylene, Propylene Oxide and Derivatives, and Latex.

Dow employs approximately 425 people in Sarnia.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. For further information, visit Dow's website at www.dow.com.

Dow Chemical Canada Inc., a subsidiary of The Dow Chemical Company, employs approximately 1,500 people in Canada. Headquartered in Calgary, Alberta, Dow Canada and its affiliates have manufacturing locations in Sarnia and Weston, Ontario; Fort Saskatchewan and Prentiss, Alberta; Elie, Manitoba; and Varennes, Quebec. For more information about Dow Canada, please visit our web site at www.dowcanada.com.


For Editorial Information:

Mimi Long
The Dow Chemical Company
(519) 339-3267