29 October, 2024 16:22:41 IST 
American chemicals giant, Dow, is planning to carry out a strategic review of some of its assets in Europe, primarily in its polyurethanes business. The review was necessitated by weak demand recovery and competitive regulatory policies, Dow said.
“Meaningful recovery has yet to materialise in Europe and China. Europe’s regulatory environment has led to increasing challenges across many sectors and value chains,” said Dow’s Chairman and CEO Mr. Jim Fitterling.
The European assets account for nearly 20% of its sales in the EMEAI region.
“Since 2023, we have proactively taken targeted actions to optimise our global asset footprint. We will continue to optimise our global footprint, while maximising cash generation as we make progress on our higher-return investments that will drive long-term shareholder value,” Mr. Fitterling said in company statement.
The company reported net sales in the third quarter of $10.9-bn, a 1 percent increase compared to the same quarter in 2023. In its industrial intermediates & infrastructure business, which includes polyurethanes, sales were down 2.4 percent. In the packaging & specialty plastics segment, which includes polyethylene, net sales were up 1 percent, compared to the year-ago period. Results were driven by higher PE prices in all regions except Latin America.
Dow’s review, which the firm expects to complete next year, will focus on its polyurethane business, which makes raw materials such as methylene diphenyl diisocyanate (MDI), propylene oxide, and polyether polyols. The assets under review have annual sales of roughly $2.9-bn, based on 2023 figures.
