August 31, 2006
Today, Dow Chemical Canada Inc. (“Dow Canada”) announced the cessation of operations at the Sarnia, Ont. site by the end of 2008 and the closure of the Chlor-Alkali and Ethylene Dichloride (EDC) plants in Fort Saskatchewan, Alta. by October 31, 2006. (See http://news.dow.com/dow_news/index.html for details of these announcements.)
However, Dow Canada President Jeff Johnston emphasizes that the company continues to have significant operations in Canada.
“Dow has a long history as part of Canadian business and culture, and while we are experiencing significant change, the core values that have created our success - such as integrity and respect for people - remain the foundation of our operations,” says Johnston. “I am confident that with these values, a highly skilled and dedicated workforce, the availability of natural resources and a solid base of assets and sales, Dow Canada has a long, bright future ahead.”
He notes that Dow Canada continues to have more than $1 billion in strongly competitive assets and about $4.1 billion in sales. The Fort Saskatchewan ethylene plant is Dow’s largest cracker worldwide and ranked best-in-class among all global light hydrocarbons facilities. Dow’s Alberta polyethylene plants are among the largest and most efficient in North America. Dow is also a part of two strong joint ventures – the E3 ethylene cracker at NOVA’s Joffre site, and the MEGlobal ethylene glycol manufacturing facilities at Prentiss and Fort Saskatchewan.
Johnston, who assumed the role of Dow Canada President in July, 2006, also notes that company’s remaining operations have the potential to become stronger, particularly in Alberta where the provincial government has been working closely with industry to secure long-term, affordable sources of ethane, the petrochemical company’s main feedstock for its ethylene-based operations.
“Once the long-term supply issue has been addressed, and our assets can be run at full capacity, we will be in a position to explore future opportunities for investment in Canada, building on the success of our existing facilities. As well, development in the energy industry, particularly in Alberta, presents the petrochemical industry with several new opportunities to explore,” says Johnston.
He says the employees directly affected by Dow’s announcements will be provided with competitive severance packages as well as career and financial counseling.
“I want to emphasize that all Dow employees will be treated with fairness, dignity and respect throughout this process,” he says and noted that the safety of employees, the community and the environment remains Dow’s top priority.
“We will maintain our Responsible Care commitments and our current standards of excellence in our environment, health and performance. We will also remain a proud partner in our communities,” Johnston says.
About Dow Chemical Canada Inc.
Dow Chemical Canada Inc. is a subsidiary of The Dow Chemical Company. 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 .
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.
For Editorial Information:
Trish Ritthaler
Dow Chemical Canada
(403) 357-8207
