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 the Louisiana Operations community as well as of the economic performance of the site.

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

Capital Expenditures

Like good care and safekeeping of your own personal property, Dow also invests in its assets to ensure long-term productivity with the best available technology. The increase through spending from 1999 through 2002 indicated the commitment to growth at Louisiana Operations with the construction of several new plants including a co-generation power facility built by American Electric Power. The increase in capital expenditures was due to reinvestment in the site.

Production

Production in 2006 was basically the same as 2005 due to global capacity in the industry.

Local Purchasing

When it comes to local purchases, some products and services 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. As a competitive, global enterprise, we have a responsibility to actively manage our costs. For certain products this means consolidating purchases and buying in volume independent of the location of the supplier.

Purchasing of equipment and supplies from Louisiana companies is a major investment by Dow. The dollars spent in the local communities include contract labor, equipment rental, materials & supplies and purchased services. The West Bank Purchasing Policy, which was suggested by the Community Advisory Panel (CAP), gives preference to businesses in Iberville, West Baton Rouge and Assumption parishes that can meet Dow's quality requirements and safety standards. Goods and services purchased from local suppliers in 2006 was approximately $75.5 million.

Payroll

Dow continues to be the major employer in the area with about 1,500 employees. Hiring of both technical and professional personnel as well as process technicians and administrative assistants continues in order to maintain our employee base in support of our operations. 88 new employees were hired at Louisiana Operations in Plaquemine in 2005, and 118 new employees were hired into the site in 2006.

Taxes

Taxes paid by a company to the various authorities are an important part of our economic "footprint" in a country. In 2006 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.

In 2006 statewide, Dow, and its subsidiaries and partnerships paid more than $86 million in state and local taxes.

Disclaimer: This data reflects the most currently available information and may be updated in the future.