Fortune Global 500 Company Profile: Dow Chemical
Founded in the United States in 1897, Dow Chemical Company is a science-based multinational corporation and the world's second-largest international chemical company (with DuPont of the United States in first place). Dow has plants in more than 50 countries and regions around the world. It primarily researches and manufactures a range of chemical products, plastics and agrochemicals, whose products are widely used in construction, water purification, papermaking, pharmaceuticals, transportation, food and food packaging, household goods and personal care. The company's business spans 180 countries and regions, with 46,000 employees worldwide.
In 1998, Dow Chemical (China) Investment Co., Ltd. was established to manage all of Dow's investment projects in China.
In 2003, total sales reached 33 billion US dollars, with more than 3,500 types of products.
Dow Chemical Company is a global enterprise in a leadership position, known for its science and technology, providing innovative chemicals, plastics, agrochemicals and services to all major consumer markets, with annual total sales of 40 billion US dollars. Dow's customers are found in 175 countries around the world, and the multiple markets it serves - including food, transportation, health and medicine, personal and home care, and construction and engineering - are all vitally important links in human life and development.
In 2004, Dow ranked 105th in the Fortune Global 500 and 34th in the Fortune 500 (US). [2]
In 2013, Dow Chemical won the 2013 US Presidential Green Chemistry Challenge Award for the successful development of its EVOQUE pre-composite polymer technology. This technology can replace titanium dioxide or enhance its hiding function. It helps improve the distribution of titanium dioxide particles in coatings and their light-scattering efficiency, increasing the hiding power of titanium dioxide and reducing its dosage in coating formulations by 20%, achieving the same or even better results at lower cost. The technology also improves barrier properties such as the stain resistance and corrosion resistance of coatings. This technology will significantly reduce energy consumption, emissions of NOx and SOx, and the occurrence of red tides. [3-4]
In August 2004, Shanghai was officially designated as the headquarters of Dow's Greater China region. Dow has actively expanded its manufacturing base in Greater China. Dow now has 18 production plants and joint ventures in locations such as Zhangjiagang, Ningbo, Zhongshan, Nangang and Tsing Yi. Focusing on its long-term development in China, Dow continuously enhances its local production and R&D capabilities, cultivates global talent, and is committed to building its regional business into one of Dow's global business centres. The Dow Center, located in the Zhangjiang Hi-Tech Park in Shanghai, was put into use in June 2009. It is Dow's commercial and innovation centre for the Asia-Pacific region and also Dow's largest integrated R&D centre, bringing together R&D expertise and market-oriented application-development strength. Five hundred top scientists and engineers collaborate across more than 80 integrated laboratories, serving the local market and meeting customer needs.
At the 2010 Shanghai World Expo, Dow was the exclusive sponsor in the chemical and materials-science category for the USA Pavilion. Dow provided all-round support for the Expo, including environmentally friendly products and solutions for the USA Pavilion and other Expo construction projects, showcasing cutting-edge technology inside the USA Pavilion, and continuously providing volunteer services for Expo-related projects.
Through years of economic and trade cooperation, Dow has established close ties with customers, distributors and governments at all levels and related units in the region. In both the Chinese and global markets, Dow's goal is to grasp customer business needs, keep abreast of market changes and provide comprehensive solutions.
Dow and its 50,000 employees worldwide firmly believe in the principle of sustainable development, and while promoting economic growth they are committed to protecting the environment and contributing to society. Dow has publicly pledged its full support for 'Responsible Care', the voluntary initiative of the chemical industry, and is dedicated to the safe handling of chemicals. Since 2000, Dow has been rated by the Dow Jones Sustainability World Index as a 'Sustainability Leader' in the global chemical industry.
Dow began operations on the Chinese mainland as early as the 1930s. For over 70 years, Dow has made full use of its leading technology and rich experience to provide quality products and services to customers in Greater China, keeping pace with ever-changing market demands. Today, Dow has established its Asia-Pacific regional headquarters in Shanghai, and has 6 business centres and 18 production bases in Greater China, with about 3,500 employees. In 2010, Dow's sales in Greater China reached 4.02 billion US dollars. Greater China has become Dow's second-largest market, after the United States.
The Dow Center built by Dow in the Zhangjiang Hi-Tech Park in Shanghai was completed in 2008, including an advanced R&D centre and a global information technology centre. The new Dow Center can accommodate 1,800 employees and has become an important business and innovation centre for Dow in the Asia-Pacific region.
While developing its business, Dow adheres to a people-oriented operating philosophy, giving each employee ample space and resources to realise their personal value and potential. While providing employees with competitive compensation and a comprehensive benefits system, the company places greater emphasis on employees' career development, having formulated a series of complete training courses and career-development plans for them, and at the same time providing a variety of personal coaching and systematic job-rotation learning systems.
Moreover, Dow has long been committed to caring about the growth and development of Chinese university students. The Dow Summer Intern Programme provides undergraduates with a good platform to experience Dow's corporate culture, showcase their personal talents and enhance their self-worth. Nearly a hundred outstanding university students from various provinces and cities are selected each year. In addition, Dow has established the 'Dow Chemical Scholarship' at seven universities - Shanghai Jiao Tong University, Tsinghua University, Fudan University, Zhejiang University, Nanjing University of Science and Technology, East China University of Science and Technology and South China University of Technology - providing not only generous scholarships for outstanding students but also giving them priority access to the Dow Summer Intern Programme and employment opportunities at Dow. [5]
On the evening of 5 December 2014, Dow Chemical announced that, as part of its plan to divest non-core businesses, it had agreed to sell its sodium borohydride business and a polyolefin film plant in Ohio for a combined total of about 225 million US dollars. Dow is under pressure from activist investors who are demanding that it trim its business to focus on higher-margin products rather than commodities. In response, the company plans to raise about 7 billion to 8.5 billion US dollars by selling non-core assets by mid-2016. It will sell the sodium borohydride business to Vertellus Specialty Materials LLC and the polyolefin film plant to Valfilm North American Inc. Both transactions were expected to be completed in early 2015. [6]
In 2015, Dow Chemical and DuPont of the United States announced a merger; the new company would become the world's second-largest chemical enterprise, after BASF. [1]
(Representative office established in 1980; Greater China regional headquarters)
(Representative office established in 1981; business centre and production base)
(Representative office established in 2011)
(Representative office established in 1979; business centre and production base)
(Representative office established in 1957; business centre and production base)
(Representative office established in 1968; business centre)
Approximately 3,900 employees
Greater China 2009 sales:
On the occasion of 'Earth Day', Dow Chemical's 'Asia-Pacific Sustainability Network' organised a group-buying event for energy- and water-saving products for employees at the Dow Center in Shanghai, calling on employees to buy energy-saving light bulbs and water-saving valves to raise their awareness of resource conservation and encouraging them to take action to protect the environment.
In the 1930s, products were sold on the Chinese mainland through agents.
After Dow Chemical completed its acquisition of Rohm and Haas in April 2009, all businesses were restructured. The new business structure comprises:
Health and Agricultural Science [8]
Applying science and technology to continuously improve the important factors that affect human progress.
Dow's emphasis on corporate social responsibility reflects its wholehearted engagement with and care for the communities in which it operates, as well as its determination to contribute to society. Dow's corporate social responsibility activities are widely recognised by sustainability-development institutions. In the Dow Jones Sustainability Index comprehensive assessment of the world's 2,500 largest companies, Dow has consistently been rated the leading chemical company globally in this regard. As a pioneer of sustainability reporting, Dow has published public reports since 1999, keeping the public informed of its progress in making sustainability an important part of its business.
Since it began operations in Greater China in the 1950s, Dow has brought the world's highest standards and professional experience in environmental protection, health and safety (EH&S) to the regional chemical industry, while also actively promoting the concept of Responsible Care in the region. Responsible Care is a voluntary initiative of the global chemical industry, aimed at achieving the safe handling of products throughout the entire process from research through production and sales to final disposal.
As an active participant and advocate of the Responsible Care programme, Dow has set very ambitious EH&S goals to achieve the 'zero target' of no accidents, no work injuries and no environmental damage. Dow's Greater China region and other Dow branches worldwide continue to firmly strive to achieve these goals.
Around the 2011 'World Earth Day', Dow Chemical is joining more than 1 billion people worldwide to widely publicise the importance of protecting the planet. In recent days, Dow employees have actively participated in various activities around the world, including educational activities, community activities, assisting municipal governments in street cleaning, tree planting, restoring forest trails, and waste recycling and reuse publicity projects.
Conducting trade in Greater China:
Neil Hawkins, Dow's Vice President for Sustainability and Environment, Health & Safety (EH&S), said: 'Every spring, around Earth Day, we are reminded again of how beautiful the planet is. At this moment, we should reflect on what actions we can take to protect it. Dow employees around the world are joining hands with local communities, taking positive actions in the hope of achieving positive results. We will continue to invest our people and technology in human development - for the benefit of the environment, society and business alike.' [9]
As a leading chemical enterprise, Dow clearly recognises the importance of sustainable development and understands that scientific and technological knowledge is the core of the sustainable development of human society; therefore Dow Chemical has for many years integrated its sustainable-development strategy into its corporate culture. In 2001, in the authoritative Dow Jones Sustainability World Index comprehensive assessment, Dow was honoured as the global chemical industry's '2001 Sustainability Leader', and in 2002 it stood out among the world's 2,500 largest chemical companies to be selected as the world's leading chemical company.
Dow Chemical's Greater China regional headquarters has recently been established in Shanghai to further lead and advance its business covering the Chinese mainland, Hong Kong and Taiwan. Dow Greater China President Jim McIlvenny said, 'The Chinese market has huge potential. To enhance Dow's market position in China, we must establish an efficient management model and a China-specific market strategy, and increase investment.' McIlvenny said Dow's business in China still has enormous room for growth. He hoped that in the next few years Dow could rapidly expand its Chinese market to replace Germany and become Dow's second-largest market in the world.
According to the Shanghai Securities News on 11 March 2009, the most-watched merger and acquisition case in the global chemical industry in 2008 - Dow Chemical's acquisition of Rohm and Haas - finally cleared the clouds after a series of twists and turns. Dow Chemical announced that it had reached an agreement with Rohm and Haas and some of its shareholders permitting Dow to complete the acquisition by 1 April 2009 on substantially revised financial terms. [2]
The US Environmental Protection Agency's '7th Annual National Sustainable Design Expo' was held in Washington, D.C. During the Expo, participants including scientists, engineers, students, government representatives and the general public experienced numerous products and solutions that advance economic development while reducing environmental impact. Dow shared its sustainable-development experience and highlighted its innovations in solar energy, water, food, packaging, home and personal care.
As a leader in sustainable chemistry, Dow is committed to addressing the most pressing environmental challenges. From solar-energy utilisation and increased crop yields to filtration systems that provide clean water, Dow offers relevant solutions to help its customers and society as a whole create a more sustainable world.
For example, Dow Global Technologies, LLC announced that it has developed a new, high-molecular-weight brominated polymeric flame retardant (Polymeric FR). This polymeric flame retardant is expected to become a 'next-generation industry-standard' flame retardant, applied in the global extruded polystyrene (XPS) and expanded polystyrene (EPS) foam insulation sectors.
Dow's operating facilities across more than 30 countries on six continents have a total floor area exceeding 10 million square feet. While pursuing development, the company also continuously strives to reduce its carbon footprint; for example, at the Dow Center in Shanghai, water-saving systems in the restrooms and outdoor sprinklers reduce water consumption, and ice-storage and heat-recovery systems lower electricity use.
At Dow's plant in Houston, Texas, at least 90% of the raw materials used in the building materials are derived from recycled materials; the plant also uses Energy Star-certified equipment and low-flow toilets with water sensors to reduce energy and water consumption.
At the Dow Building in Sao Paulo, Brazil, green-building features are visible everywhere, such as energy-saving sensors and recyclable carpets and furniture.
Dow's headquarters building in Michigan has a 'green roof' planted with 16 species of plants that slow air flow, filter pollutants, create a habitat for wildlife and control stormwater runoff. [9]
On 23 May 2008, after urgently donating 2 million RMB within 24 hours of the Wenchuan earthquake in China, and in the face of escalating disaster conditions and relief needs, Dow made additional donations to support post-disaster reconstruction, while Dow employees worldwide launched spontaneous donation campaigns to aid the people in the disaster area. Dow's cumulative cash and material donations to the disaster area reached nearly 10 million RMB.
From 2005 to 2007, in cooperation with the State Environmental Protection Administration (SEPA) of China, Dow promoted clean-production demonstration projects nationwide, contributing 6 million RMB in addition to providing its global technology and experience.
In 2004, it adopted and donated to a Taiwan, China indigenous tribe, helping residents improve their quality of life.
In 2003, it funded the Hong Kong Society for the Protection of Children to establish a children and family service centre.
Through the Red Cross Society of China, it made a donation to the flood-affected disaster area along the Yangtze River in Jiangsu, used to purchase medicines and medical equipment.
From 2001 to 2002, it sponsored the 'Hand in Hand, Global Village' project in Beijing to support environmental education for Chinese children and to raise funds for schools and libraries in poverty-stricken areas.
Since 1998, it has established scholarships at renowned institutions such as Tsinghua University, Shanghai Jiao Tong University, Tianjin University, Beijing University of Chemical Technology and East China University of Science and Technology, to cultivate local chemical talent. [5]
