Dow Chemical creates new business unit

George Hohmann

Daily Mail business editor

Tuesday July 03, 2007

The Dow Chemical Co. announced it has completed the acquisition of Bayer's Wolff Walsrode cellulosics business for $725 million and created a new business unit that includes two product lines manufactured at Institute.

Dow said it has created the new specialty business unit, Dow Wolff Cellulosics, by combining its water soluble polymers business with Wolff.

The new unit includes Cellosize hydroxyethyl cellulose and Polyox water-soluble resins, which are manufactured at Institute, said Dow spokeswoman Rosemarie Rung. About 65 people support the new business unit at Institute, she said.

Dow said the new business unit will have annual revenues of more than $1 billion and employs 2,200 people worldwide.

Cellulosics is a high-growth area, Rung said. "The new business unit is not a new legal entity but a new business approach to accelerating growth," she said. "It's to focus and bring together the best of both worlds to drive growth in the area of cellulosics. Wolff brings advantages we didn't have to Dow, and Dow brings advantages to Wolff. We're confident this will be very successful and strengthen our position as an industry leader."

Dow announced in January that it would expand operations at Institute to increase production of Cellosize products and reduce energy costs. The Midland, Mich.-based company did not say how much the expansion would cost but Sen. Jay Rockefeller, D-W.Va., said the company would invest $20 million.

Dow has said it expects the project announced in January to be completed in 2009 and to save more than $3 million in energy costs annually.

Rung said the investment announced in January will better position the Institute operation to take advantage of growth.

Dow Chemical became a major employer in the Kanawha Valley when it bought Union Carbide Corp. in 2001. Dow has several operations in the Kanawha Valley, where it employs about 800 people.