By Liz White, ERJ staff
Midland, Michigan-Dow Chemical has announced it will realign its businesses into two groups: Basic Plastics & Chemicals, and Performance Plastics & Chemicals.
This new business structure is designed to "further accelerate implementation of the company's long-term strategy," according to a statement from the company.
"Our strategy for the past decade has been to move to a basics- and performance-based business model," commented Andrew Liveris, president and ceo.
"Dow is accelerating the implementation of that strategy, capitalising on our historical strengths in low-cost production, as well as our growth and success in innovative, market-driven businesses," he added.
As a result of the change from three units to two, various executive changes have been announced.
Phillip Cook, senior vice president of Performance Chemicals and Thermosets, becomes corporate vice president of strategic development and new ventures.
Michael Gambrell, senior vice president of Chemicals and Intermediates, becomes executive vice president for the Basic Plastics & Chemicals Portfolio. His focus will be "leveraging Dow's competitive advantages in plant integration, operational excellence, product and process technology, low-cost feedstocks, and joint ventures," said Dow.
Romeo Kreinberg, senior vice president of Plastics, is the new executive vice president for Performance Plastics & Chemicals. With Liveris and other executives, Kreinberg will "accelerate the company's strategy to preferentially invest in Performance Businesses, which are less cyclical and provide a solid base of earnings throughout the industry cycle," Dow said.
An emphasis on innovation in products and applications will be a key feature in these businesses, according to Dow.
"These moves further align our focus on our Strategic Themes." Liveris said. "Both the Basics and the Performance Portfolios are vital to Dow's long-term success, enabling value growth and furthering our product, systems and ultimately our solutions offerings to our customers. This change will sharpen the focus on the specific strategies, expertise and implementation required for every business to succeed."