Fort Saskatchewan, AB - August 31, 2006
Dow Chemical Canada Inc. announced today that it will be closing two of the seven petrochemical production facilities currently in operation at the Fort Saskatchewan, Alberta site. The closure of the two facilities, Chlor-Alkali and Ethylene Dichloride (EDC), will result in the loss of approximately 170 jobs at the site, comprising around 100 employees and 70 contractor positions.
“A detailed evaluation of the two facilities concluded that they are no longer competitive for Dow in the global market place,” said Robert Lacroix, Dow’s Fort Saskatchewan site leader in announcing the closures. “This decision was driven by the substantial capital costs required to maintain long-term operations at the 27 year-old facilities; investment that could not be justified based on the rates of return we could expect in an environment of shifting EDC market dynamics and comparatively high and volatile North American energy and feedstock costs,” he said.
He added, “Despite the closure of these two facilities, Dow remains committed to maintaining a strong presence at the Fort Saskatchewan site, including the continued operation of five other production facilities, which together provide more than 500 employee jobs and 350 contractor positions, as well as contributing millions each year in local taxes and community contributions. We anticipate the continued operation of these plants over the long-term.”
Jeff Johnston, president of Dow Canada’s operations stated, “The decision to close these two plants was made only after all alternatives were examined in detail, including the potential sale and continued operation of the facilities by other companies, to protect job opportunities for our employees. Unfortunately, there were no other viable options.”
“In the next six weeks we will undertake a comprehensive reorganization of the Fort Saskatchewan operations in an effort to maximize the efficiency of the remaining operations and minimize job loss through reassignment and redeployment of staff both locally and globally where appropriate,” he added. “We highly value our staff and the contributions they have made and any employees losing their jobs will be provided with a competitive severance package and access to job search, retirement and financial counselling,”
The two plants being closed began operations in the late 1970s. The Chlor-Alkali plant produces chlorine and caustic soda, an essential ingredient in many industrial operations including pulp and paper, textiles, detergents, and chemical processing. EDC is used to produce vinyl chloride monomer, which is used in the production of vinyl siding, plumbing piping, garden hoses and raincoats.
Current Dow customers for these products will continue to be supplied from other facilities. The two production facilities will shut down operations by October 31, 2006.
Said Lacroix, “Dow remains committed to its operations in Fort Saskatchewan and dedicated to keeping excellence in environmental protection, health and safety performance a top priority in all of our activities.”
Dow will continue the operations of its Fractionator, Ethylene, Polyethylene, Power and Utilities and STYROFOAM™ manufacturing plants at Fort Saskatchewan following the shutdown of Chlor-Alkali and EDC. MEGlobal Canada also has an Ethylene Oxide/Ethylene Glycol manufacturing facility at the Fort Saskatchewan site.
About The Dow Chemical Company
Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
About Dow Chemical Canada Inc.
Dow Chemical Canada Inc., a subsidiary of The Dow Chemical Company, employs approximately 1,300 people in Canada. Headquartered in Calgary, Alberta, Dow Canada and its affiliates have manufacturing locations in: Sarnia and Toronto, Ontario; Fort Saskatchewan and Prentiss, Alberta; and Varennes, Quebec. For more information about Dow Canada, please visit our web site at www.dowcanada.com
For Editorial Information:
Shannon Gregg
Dow Canada Public Affairs
(780) 998-8445
Fax: (780) 887-1699
