Dow Databook 2010   2010 Databook
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Pro Forma Sales

Dow Building and Construction is comprised of several business units that offer extensive lines of industry-leading insulation, weatherization, and construction chemical products, systems and solutions. In 2010 the business group expanded to include Dow Solar Solutions, home to the revolutionary DOW™ POWERHOUSE™ Solar Shingle.

The business group holds a competitive advantage thanks to its strong brands and leadership in demand creation, ability to manage complex value chains and expertise in using building codes and regulations to drive business.

The drive to improve energy performance in the building sector is a key disruptive trend that will significantly shift the behavior and dynamics of the industry – providing strong opportunities for chemistry-enabled solutions. Against this backdrop, Dow Building and Construction will build a portfolio of sustainable, branded offerings with attractive and profitable growth.

1 Excludes Dow Wulff Cellulosics.

Leading Technology Positions

  • #1 global position in extruded polystyrene (XPS) foam insulation
  • #1 position in one-component foams in retail (namely North America)
  • #1 global position in cellulosic-based construction chemical additives
  • #1 position in North America in acrylic-based construction chemicals
  • Leading position in weatherization
  • First-mover into solar shingles

Market Trends Driving Growth

  • Increasing standards and codes for buildings, especially for energy
    conservation
  • Building industry demand for lower labor costs, lower maintenance
    costs and increased performance
  • Drive to reduce greenhouse gas (GHG) emissions
  • Aged infrastructure and increased urbanization

Dow Construction Chemicals

Formed in 2009, Dow Construction Chemicals combines the capabilities of heritage Rohm and Haas and Dow Wolff Cellulosics businesses to offer proven chemistry, coupled with deep market knowledge, and application/materials science expertise that help differentiate customers' construction materials, and advance the performance of buildings and infrastructures worldwide. The business provides additive and formulation solutions to manufacturers of construction products such as elastomeric roof coatings, external insulation finishing systems (EIFS), specialty cements, insulation, caulks and sealants.

Elements of Market Success and Profitability

  • Broad technology portfolio
  • Strong regulatory and certification knowledge
  • Responsive technical service and support

Wide Range of Acrylic – and Cellulosic-Based Technologies

Dow Construction Chemicals offers a wide range of products for making caulks, sealants, cement modifiers, structural adhesives, elastomeric roof coatings, EIFS additives applications, insulation binders, and roof tile and siding coatings. Our products can also be found in applications like tile adhesives and grouts, cement plasters, gypsum plasters, fillers and joint compounds, and concrete.

Among our industry-leading brands:

  • AQUASET™ Acrylic Thermosetting Resins
  • RHOPLEX™ Aqueous Acrylic Polymer Emulsions
  • METHOCEL™ Cellulose Ethers
  • CELLOSIZE™ Hydroxyethyl Cellulose

Dow Building Solutions

US. Energy ConsumptionThe building sector alone accounts for 40% of all energy consumption and GHG emissions worldwide, and in the U.S., buildings account for 48% of energy consumption. Statistics show that building insulation is the most cost-effective approach to CO2 abatement and reducing energy consumption in buildings. Dow Building Solutions is a market leader in delivering insulation and weatherization solutions that improve the energy efficiency of building applications and reduce energy costs.

Elements of Market Success and Profitability

  • Valued brands, including STYROFOAM™ Brand Insulation, world renown for exceptional thermal and moisture-resistant properties
  • Strong channels to market in commercial, residential, and retail/DIY (Do-It-Yourself)
  • Building science expertise, deep understanding of regional market needs and codes, as well as strong regulatory and certification knowledge
  • Broad technology portfolio, offering customers differentiated insulation components and systems

Strong Line of Insulation and Weatherization Products and Solutions

Our extensive portfolio of products and systems helps reduce a home or building's energy consumption, and prevent air infiltration and moisture intrusion. Among our most recognizable brands:

  • GREAT STUFF™ Insulating Foam Sealants
  • THERMAX™ Insulating Products
  • STYROFOAM™ Brand Insulation Products

Recent Strategic Investments

  • Investment/conversion of North America's production facilities for STYROFOAM™ Brand Insulation to new zero ozone-depleting, foaming-agent technology
  • Launched STYROFOAM™ Brand Structural Insulated Sheathing (SIS)
  • Launched THERMAX™ Wall System
  • Launched External Insulation Finishing Systems (EIFS) in China

Dow Solar Solutions

Dow Solar Solutions is focused on developing the next generation of solar energy products and expanding Dow's commitment to solve global energy challenges.

Recent Developments

  • October 2009: DOW™ POWERHOUSE™ Solar Shingle introduced as the first in a portfolio of building-related, solar energy-generating products. Since its introduction, the shingle has been hailed as revolutionary, including being named one of the "50 Best Inventions of 2009" by TIME magazine. The shingle will be available in limited amounts by mid-2010 and projected to be more widely available in 2011 as production scale up begins.
  • February 2010: Dow announced that Midland, Michigan has been identified as the preferred site for the first full-scale production facility for its solar shingle, subject to finalizing local, state and federal funding. Later in the month, the Michigan Economic Growth Authority (MEGA) and Michigan Economic Development Corporation granted Dow a MEGA Job Creation Tax Credit, which includes incentives for future job creation in Michigan related to Dow Solar Solutions' planned full-scale production facility.
  • March 2010: DOW™ POWERHOUSE™ Solar Shingle receives a 2010 GLOBE Foundation award for "Environmental Excellence in Emerging Technology.

Strong Value Proposition

The DOW™ POWERHOUSE™ Solar Shingle is a roofing product that is also a solar collector, giving rise to the first practical – and neighborhood friendly – rooftop integrated solar solution for homes with asphalt shingles. The shingle is the solar panel, and the solar panel is the shingle – making it truly seamless when incorporated into rooftops with standard asphalt shingles.

  • Can be installed on rooftops by roofers and incorporated with asphalt materials
  • Allows great flexibility in how the solar arrays can be designed into homes
  • Eliminates on-roof wiring and minimizes through-roof penetrations
  • Utilizes CIGS-based (Copper Indium Gallium diSelenide) photovoltaic cells that are lightweight, flexible and high efficiency
  • Provides homeowners an affordable solar option