Dow Announces Idling of UESM Latex Plant at Bayamon, Puerto Rico

CARY, N.C. - November 21, 2002

UCAR Emulsion Systems, a global business unit of The Dow Chemical Company, today announced plans to idle its latex production facility at Bayamon, Puerto Rico.

This unit produces latex emulsions for use in architectural coatings (paint). The site currently employs 22 full-time professionals, all of whom are eligible for a severance package.

This decision follows an asset optimization study of the UESM operations worldwide, which indicates that the Bayamon site is the highest cost increment in the worldwide UESM operations in the Americas. Given current demand levels, customers will be sourced from other UCAR Emulsion Systems (UESM) manufacturing sites.

Production at the Bayamon UESM site will be idled by January 31, 2003. At this time, inventories will be depleted and manufacturing equipment will be mothballed, allowing the plant to be left in a safe condition for future use. Environment, health and safety will be a top priority during the transition. A decision regarding the utilization of the facility will be made in the future, dependent upon substantially improved economic conditions and customer demand.

Dow has begun its communication with suppliers and customers to facilitate the idling of the plant within the specified timetable. Dow customers are being advised of the company's alternative sourcing plans, which ensure that there will be no disruption in supply.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $28 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of Sustainable Development, Dow and its approximately 50,000 employees seek to balance economic, environmental and social responsibilities.


For more information, contact:

Nadine Keutzer
The Dow Chemical Company
Phone: 1-919-469-6738
Email: keutzenw@dow.com

Eddie Baez
The Dow Chemical Company
Phone: 1-787-780-3096, ext. 2203
Email: baezee@dow.com

Mike Crisp
Gibbs & Soell, Inc.
Phone: 1-212-697-2600
Email: mcrisp@gibbs-soell.com

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