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Dow Canada Announces Closure of Sarnia Epoxy/DERAKANE Plant and Site Restructuring

Published on 2004-06-02. Author : SpecialChem

Sarnia, ON - June 01, 2004 - Dow Chemical Canada Inc. announced today the decision by the global Epoxy Products and Intermediates business to close the Epoxy plant which also produces DERAKANE* epoxy vinyl ester resins, located in Sarnia, Ontario, on August 1, 2004. In addition to and consistent with global restructuring efforts within The Dow Chemical Company, leadership in Sarnia has been reviewing its local infrastructure to ensure the most competitive structure for the Site.

Closure of the plant and a review of site infrastructure - functions and processes - means there will be significant changes. The reduction of 50-70 wage and salaried jobs will occur in 2004.

"We will be working with our employees, leadership, Human Resources, and the Union to assist our people with these changes," said Steve Bolt, Director, Sarnia Operations. "We will be using our Relationship by Objectives (Dow/Union) process within the parameters of the recent Collective Agreement to address early retirements in a top-down order that should ultimately minimize job loss. In addition, Dow will be maximizing redeployment opportunites and retirements which should again minimize job loss."

Al McChesney, Production Leader for Epoxy commented: "The closure of the plant is not a reflection of the plant's workforce capabilities, productivity efforts or environmental health and safety performance. Dow came to the decision after carefully examining our epoxy production capabilities worldwide and seeing a need to consolidate production given changing market dynamics. With the existing global economic volatility, Dow businesses continue to look at operations worldwide. The viability of the Sarnia epoxy production unit has been under business review for the last two years and, as difficult as it is to receive the news, there is now an end to the uncertainty under which our people have existed during this review period."

We remain commited to our people and the local community," continues Bolt. "We know that globally, Dow businesses will continue to examine their assets with a view to keeping the company competitive into the future. This decision is in line with Dow's aggressive strategy to reduce costs and optimize assets." Bolt added: "We will continue to pursue new opportunities to attract other Dow businesses to the site as well as invest in businesses currently located here. The recent conversion of our Product Development Plant to produce polyethylene waxes, the expansion of our Dow Automotive Reserach facility at the Modeland Centre and, an expected $10-15 million in capital investment at three of our plants over the next three years is an example of how we continue to adapt the Sarnia Site to meet economic conditions and ensure our long-term viability."

Dow employs approximately 500 people in Sarnia.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 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 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Dow Chemical Canada Inc., a subsidiary of The Dow Chemical Company, employs approximately 2,000 people in Canada. Headquartered in Calgary, Alberta, Dow Canada and its affiliates have manufacturing locations in: Sarnia, Milton and Weston, Ontario; Fort Saskatchewan and Prentiss, Alberta; Elie, Manitoba; and Varennes, Quebec. For more information about Dow Canada, please visit our web site at www.dowcanada.com.

*Trademark of The Dow Chemical Company The DOW Diamond is a trademark of The Dow Chemical Company

Source: Dow Canada


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