Calgary, Alberta, Canada - November 15, 2005
Dow Chemical Canada Inc. announced today that Dow BioProducts, a division of Dow Canada, will cease manufacturing operations of WOODSTALK™ high-performance engineered panels from its plant in Elie, Manitoba, by December 31, 2005. Approximately 68 Dow BioProducts employees and 15 contractors will be affected by the decision.
"Dow BioProducts and its employees worked very hard to reposition the WOODSTALK product mix within a niche market that values its environmental benefits and quality," said Wayne Karolat, Dow BioProducts vice-president of operations. "While we have been able to refine our manufacturing processes and improve product quality, the appetite of the marketplace to support high-quality, low VOC (Volatile Organic Compound) fibreboard products was not sufficient to ensure the sustainability of the business."
"External market conditions, such as increasingly volatile feedstock and energy costs and lower-cost product competition, provided significant challenges for us, and thus, the business decided to cease Dow BioProducts' operations," continued Karolat.
"Business decisions directly impacting our workforce are always difficult to make," said Ramesh Ramachandran, president, Dow Chemical Canada Inc. "Dow wants to be clear that the decision to cease operations at Elie is not a reflection on either the excellent work and commitment of Dow employees, or the plant's ability to operate safely."
Dow Canada is working with employees through the transition and shutdown process. Specifically, employees will be provided with support such as job search assistance/retirement counselling and a competitive severance package as they prepare to leave Dow.
"In this period of transition and during the shutdown process, we maintain our commitment to the highest environment, health and safety standards and performance. As we wind down the operations, the safety of our employees, the community and the environment will remain our top priority," continued Ramachandran.
About Dow Canada
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:
Shannon Gregg
Dow Chemical Canada Inc.
(780) 998-8445
