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January 2005 CAP Meeting

The Community Advisory Panel (CAP) to Dow Texas Operations recently met with site leadership. A reception to view selected artwork from students at the Boys & Girls Club started the meeting. The students participated in an art program made possible through a grant by Dow Texas Operations.

Question & Answer Session
The CAP and Dow discussed the following:

  • Bhopal incident anniversary demonstrations were minimal at Dow locations.
  • The effect of natural disasters in Asia on Dow's operations and plans for future sites.
  • Dow Texas Operations never produced Agent Orange.

Meeting the Challenge
Bob Walker, vice president of Dow Texas Operations, gave a presentation on Dow's and Texas Operations' 2004 challenges and what lies ahead in 2005.

  • Since 2003, Dow as a company has made great strides in personal safety (20 percent improvement), loss of primary containment (23 percent reduction) and process safety (39 percent improvement). Texas Operation also improved in those areas.
  • One of the factors that helped Dow financially in 2004 was a tighter market supply and demand balance, which allowed greater pricing power.
  • Dow's hydrocarbon and energy costs increased $3.5 billion in 2004 (after increasing $2.7 billion in 2003). Those costs will continue to increase, which will make margins continue to be a difficult challenge for Dow.
  • Some of the future challenges for Dow sites in the United States are: the lack of a federal energy plan; the needed progress on future tort reform on asbestos litigation.
  • Some of the future challenges for Texas Operations are: the future of school finance reform; re-instatement of job retention for tax abatements; permitting regulations on manufacturing plants.
  • Walker also discussed: Dow purchasing a stake in the local LNG plant, hydrogen fuel cell research, the new PMDI plant, workforce planning for the training of employees and the rollout of the 2005 Community Grants Program.

Meeting the Challenge
On January 4, Dow announced that it will contribute $5 million to the relief efforts for the victims of the earthquake and subsequent tsunamis in Southeast Asia and the Indian sub-continent. This contribution will consist of a $1 million cash contribution to the American Red Cross International Response Fund, which is dedicated to providing immediate, vital help to the victims in need. Additionally, Dow will provide up to $1 million to match individual contributions from Dow employees and retirees around the world. Dow will also donate another $3 million in the form of products, technology and funds to assist in the longer-term reconstruction efforts.