Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
June 06, 2018 12:00 AM

Dow 'actively looking' for M&As, acquiring system houses

Shahrzad Pourriahi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Maastricht, Netherlands – Dow Polyurethanes is on the hunt for systems houses that fit with its strategy in higher added value markets segments, Jon Penrice, vice president Dow Polyurethanes, said at UTECH Europe 2018.

    Penrice speaking on the fringes of the meeting said: ‘we have gone through a strategic review. We are actively looking for M&A.’

    ‘We want to pick up the pace again. It’s a good strategy, we took a rain check on it,’ he explained. ‘We would like to grow our systems business at close to double digit; 8-10% is our projected rate.’

    ‘Acquisitions give us channels to market as well as speed,’ he said.

    ‘We are interested in acquiring technology positions in the CASE area and composites and in rigids.’

    ‘Technical insulation for pipes… consumer areas too in the comfort sector. Within CASE, protective coatings for truck floors, adhesives’ are all targets.

    Dow sees systems as a way of moving up closer to adhesives customer in the supply chain.

    Penrice explains: ‘Dow is a large company in the adhesive sector, but as a raw material supplier. Dow is interested in industrial and construction adhesives. Elastomers, small customers high technology and higher than usual P/E margins.

    Footwear, ‘could be interesting as it moves back out of Asia to Turkey, north Africa and its going a bit further up market.’

    Composites is the final area of interest ‘it’s fairly small, compared to unsaturated polyester resins, but processability and performance are there. Polyurethanes sit in the gap where it is more processable than epoxy and higher performance than polyester. We’re seeing much higher growth rates in composites in automotive and industrial applications.’

    Penrice added: ‘there are small companies that lack scale but have global ambition, we can give them global growth and expansion.

    ‘We are also very flexible on the type of M&A, they could turn into joint ventures, marketing alliances. We are not dogmatic. We want the entrepreneur to have skin in the game and to want to continue, but we can help scale, and they can grow much faster with us, or they can cash out.’

    RECOMMENDED FOR YOU
    German rubber industry to return to double-digit growth in 2021
    German rubber industry to return to double-digit growth in 2021
    Yokohama rings the changes with YX2023
    Yokohama rings the changes with YX2023
    Synthomer dismisses takeover reports
    Synthomer dismisses takeover reports
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac