12:37 PM | July 29, 2013
Dow announced in its earnings call on 25 July that it is evaluating strategic options for underperforming businesses, specifically epoxies, chlorine derivatives, and building and construction outside North America, which together represent $6 billion in annual revenue. “We see the need for more dramatic interventions,” Andrew Liveris, Dow chairman and CEO, said. “Therefore, these businesses are in the fix-take action mode, which includes exploring all possibilities, including joint venturing or divesting them.” Liveris noted Dow’s track record of carving out integrated businesses, most recently the 2010 sale of its Styron business. “This was a highly complex carve-out on 20 Dow sites, with hundreds of residual service agreements to ensure that there were no stranded costs,” he said. Dow’s plastics additives and polypropylene licensing and catalysts are already up for sale as part of a $1.5-billion divestiture plan announced in March. Liveris also said the restructuring program announced late last year remains on track.