Dow Completes Strategic Ownership Restructuring of Dow Corning Corporation
June 1, 2016, marked a historic occasion for Dow and Dow Corning in their 73-year joint venture relationship. It was a day of new beginnings for Dow Corning employees as they were welcomed as full members of the Dow family. It was also a day to embrace new opportunities in innovation and collaboration in an exciting new element for growth for Dow – silicone chemistry.
Dow is now 100 percent owner of Dow Corning’s silicones business after successfully completing the transaction to restructure its ownership. The transaction is expected to yield more than $1 billion in additional annual EBITDA at full run-rate synergies.
Fully aligned to Dow’s portfolio strategy, Dow Corning’s industry-leading silicones position deepens Dow’s product offerings in attractive end-use applications such as building and construction, consumer care, transportation, packaging, coatings and electronics.
For Dow Corning, the added power of Dow’s operational excellence, global scale, and powerful innovation and R&D engine will drive growth by enhancing Dow Corning’s ability to serve customers.
The transaction represents the next step in Dow’s portfolio evolution as we drive higher, more stable earnings. Bringing together the unique global strengths of Dow and Dow Corning will drive exciting opportunities for new product offerings, increased geographic reach and expanded R&D power to enhance Dow’s ability to bring innovation to customers.
Dow and Corning Inc. will continue their longstanding relationship by each maintaining its proportional indirect equity stake in Hemlock Semiconductor Group, a provider of polycrystalline silicon used in the manufacture of semiconductor devices and solar cells and modules.
Dow Corning will be an important cornerstone in building the New Dow – the world’s leading material science company.