Letter from the Site Leader — Glen Mutscher

Achieving the right balance in the right areas is important to Dow and is central to what we do at the Sarnia site. It forces us to look at how we, as a company, can continue to run a safe, profitable and efficient organization without compromising our obligation as a steward of the environment and a provider to the community. Our reputation is based on our ability to achieve sustainability, and we believe it is this that has brought acceptance of Dow in Sarnia as a contributing and welcome member of the community. Your comments and suggestions are welcome since they often provide us with valuable ideas about where we can continue to make a difference. I invite you to contact us with your questions, concerns and suggestions for improvement.

2005 was a significant year for Dow’s Sarnia site as we concluded the final stage of our St. Clair River Sediment Remediation Project with the construction of the sediment treatment system. The sediment work was the last of the projects, totaling over $100 million that began 20 years ago when Dow committed to ensure that current operations would be protective of the environment and that historical discharges would be eliminated. We have achieved all the goals we set for ourselves and are very proud that the community and the Ontario Ministry of the Environment have recognized our success.

The year 2005 was also one of increased activity within the boundaries of the Dow Sarnia site as we continued to work into our new identity and redefine ourselves locally and within the larger Dow organization. We are now on a path of renewal which has more to do with attitude and working within our business reality. We chartered a site renewal team that looks at potential projects to keep our costs down and our operations running smoothly and efficiently. The team investigates ideas such as leasing our unused land to other businesses within or outside the Dow organization so as to create an industrial park. Or, how Dow can revamp older, unused facilities for new opportunities. These examples are part of the evolution that is going on inside our walls and illustrate the vision, determination and commitment of our leadership and employees to keep the Sarnia site a viable operation.

One area in which we retain our constancy of purpose is environmental, health and safety performance (EH&S). Yet 2005 turned out to be a year in which we did not meet our internal EH&S targets for improvement despite the significant focus placed on it — we ended the year with little improvement over 2004. While we continue to meet regulatory requirements, we will continue to push ourselves on performance improvement, working first to determine what the underlying systemic issues are that prevented us from making more significant progress. Having said that, there were gains made that are worthy of note. During 2005, the site set a new record of 221 continuous days without an injury — a very important and positive workplace safety indicator.

As Operations Director I remain committed to the people at the Sarnia Site and in the surrounding community. I will continue to drive improvement and support any critical changes that will better position us for the future.

Glen Mutscher
Operations Director
Dow Sarnia Operations