Dow wants to sell its SBR, BR business

ERJ staff report (DS)

Midland, Michigan -- Dow Europe GmbH ("Dow") wants to sell its Synthetic Rubber business. The company said it is " exploring divestiture options" for the unit, which covers Dow's range of styrene-butadiene rubber and polybutadiene rubber. Dow has engaged J.P. Morgan to act as financial adviser in support of this effort.

The company is not planning to sell its "Dow Elastomers" unit, which focusses on ethylene elastomers, including the Nordel range of EPDM materials, as well as Engage and Affinity olefin-based elastomers and plastomers. Dow Elastomers announced in December 2008 the closure of a large EPDM plant in Seadrift, Texas.

Just over a year ago, Dow said it was putting the SBR/BR unit under strategic review, which might result in a decision to sell the activity. This business derives from the acquisition of the Schkopau petrochemicals complex in the eastern part of Germany. Dow said the business has been, and continues to be, a profitable business and will remain sharply focused on effectively managing operations and delivering exceptional value to customers during this period.

The business has been working closely with leading tyre manufacturers to develop new types of rubber for low rolling resistance, which will lead to lower fuel consumption and less CO₂ emissions in vehicles. In addition to tyres, synthetic rubber produced by Dow also is used in plastic modification and technical rubber goods such as hoses, conveyor belts, and footwear.

In March, Dow Europe opened a new 60 kt/year facility for making solution-SBR. As part of the deal, JSR Corp. has rights to a portion of the capacity of the unit.

The business is strategically located in central Germany to access all key markets for synthetic rubber, and includes five production plants and a research center in Schkopau, Germany

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Press release from Dow