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Pittsburg Operations

Economic Prosperity

The economic prosperity of a city, state or nation is largely dependent on the amount, and type, of business being conducted there. Payroll, taxes and corporate purchases all contribute significantly to economic health — and indirectly to infrastructure, civic institutions and culture. In this section we have tried to share some key indicators of our impact on our Pittsburg Operations community as well as of the economic performance of the site.

Here are some key indicators of our financial impact on the local community:

Capital Expenditures
Just as good care and safekeeping of your own personal property is important, Dow also invests in its assets to ensure long-term productivity with the best available technology. The increased spending during 2000 and 2004 reflects construction dollars for the Alpha-fluoro-trifluromethylpyridine (Alpha FTF) and Profume® plants, indicating the commitment to growth at Pittsburg Operations.

Capital Expenditures

Production
Total production (pounds produced) reported in 2005: 396 million pounds.

Production

Local Purchasing
As a competitive, global enterprise, we have a responsibility to actively manage and minimize our costs. For certain products this means consolidating purchases and buying in great volume independent of the location of the supplier. However, there are other products and services that by their very nature will be bought locally, such as contract labor and certain maintenance activities. Dow's local purchasing department works closely with local suppliers to educate them about our strategic purchasing requirements.

In 2005, Pittsburg spent $38.2 million with suppliers located in the greater San Francisco Bay area. The site spent an additional $1.5 million with suppliers from throughout California.

Payroll
Total payroll reported in 2005: $27.6 million. Pittsburg continues to be a significant employer in the area, providing careers for 330 employees. In addition, contractor payroll in 2005 totaled $14.3 million. Hiring of both technical and professional personnel as well as process technicians is a major focus as we strive to maintain our employee base in support of our operations.

Payroll

Taxes
Taxes paid by a company to the various authorities are an important part of our economic "footprint" in a country. In 2005 the various Dow subsidiaries around the world paid $1,600 Million USD in Corporate Income Tax, Property Taxes, Employer's portion of Payroll Taxes and various other non-income taxes.