Midland, MI - September 30, 2005
The Dow Chemical Company and its affiliates (Dow) announced that it has declared force majeure for vinyl acetate monomer (VAM) due to conditions resulting from Hurricane Rita, which constitute circumstances beyond the Company's reasonable control. As a result, effective September 21, 2005, Dow is allocating its available supply of VAM to customers in a manner that is fair and reasonable.
VAM production at Texas City Operations was shut down as a standard precautionary measure in preparation for Hurricane Rita. No significant structural damage to the plant was caused by the hurricane.
However, there has been a cumulative, lasting impact from Hurricanes Katrina and Rita on the availability of natural gas, feedstock and transportation services---which are essential to production and delivery of VAM---throughout the U.S. Gulf Coast.
"Maintenance and operations teams at the plant are working to resume production as soon as safely possible and as feedstock availability allows," said Rob Broomham, Global Business Director, Dow VAM. "Conditions resulting from the impact of the hurricanes, however, may persist and continue to disrupt the availability of VAM."
Texas City Operations is owned and operated by Union Carbide Corporation, a wholly-owned subsidiary of Dow.
Dow is a global leader in the production of vinyl acetate monomer (VAM), an essential chemical building block used in a wide variety of industrial and consumer products. VAM is a key ingredient in emulsion polymers, resins, and intermediates used in paints, adhesives, coatings, textiles, wire and cable polyethylene compounds, laminated safety glass, packaging, automotive plastic fuel tanks, and acrylic fibers.
About The Dow Chemical Company
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: 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. Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
For Editorial Information:
Amy Ahlich
The Dow Chemical Company
(989) 636-3587
Josiah McClellan
Gibbs & Soell, Inc.
(212) 697-2600
