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With facilities in key locations around the world, customers in more than 175 countries and equity in almost 80 joint ventures, Dow has a history of successfully investing for growth. During the past decade, our strategic direction has created a company with strong geographic balance, a diverse business portfolio and a customer base serving a wide range of end-use applications.
It’s a model that has served us well – and it will continue to do so as we advance our growth agenda on the following four fronts:
Portfolio Management
Maximizing value for our shareholders means targeting our investment capital wisely. For this reason, we have characterized each of our businesses by its investment potential – from those that we can grow at above-industry levels, to those that we will run for cash, to those that we must improve or divest. In 2005, we allocated resources accordingly, while also maintaining our long-term commitment to preferentially invest in our higher-value downstream businesses.
Technology Leadership
Dow is committed to creating innovative products that address world challenges and meet customer needs. From renewable seed-oil raw materials that can partially replace hydrocarbons, to catalyst technologies that enable next-generation polymers, the Company is exploring an array of novel solutions focused on improving the lives and living standards of people across the globe. Using a business-driven approach to innovation, we are creating dynamic research models, increasing our intellectual property and reducing development costs. We are also targeting higher-value growth opportunities, bringing research and development (R&D) closer to our markets and customers and ensuring a more robust pipeline of in-demand products for the future.
Growing with Strategic Customers
We aim to grow with our strategic customers by providing the products, technologies and services that enable them to advance in new directions. Toward that goal, we are developing stronger, more dynamic customer relationships that yield mutually beneficial opportunities for success. In 2005, such relationships enabled customers to deliver many breakthrough products and technologies – from leather-covered laptop computers to the world’s largest desalination plant.
At the same time, we are advancing plans to create more market-facing businesses, aligning products and technologies with specific industries – such as automotive, building and construction, and personal care – to better serve the needs of our customers.
Geographic Expansion
In 2005, we strengthened our market presence in several growth regions, most notably China and Russia, as well as countries like Brazil and India, and across various parts of Eastern Europe, Southeast Asia and the Middle East. For example, we became the first foreign-invested enterprise located in a free trade zone in China to receive approval to expand trading and distribution rights in the country. We received the go-ahead for a state-of-the-art R&D/information technology facility in Shanghai, China. And we gained approval for the construction of a STYROFOAM™ extruded polystyrene insulation board plant in Russia.
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