Dow Chemical 2013 Annual Report Download - page 35

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FEEDSTOCKS AND ENERGY
The Feedstocks and Energy segment is the largest global producer of ethylene, chlorine, caustic soda and purified ethylene
oxide. This segment is also a leading purchaser and producer of propylene and one of the world's largest industrial energy
producers. Combining best-in-class technologies, unparalleled scale and highly integrated operations, Feedstocks and Energy
supplies cost-advantaged building blocks to our performance and market driven businesses. The majority of Dow's advantaged
internal feedstock supply is used to enable our downstream businesses. In 2013, Dow's higher-margin performance businesses
consumed 100 percent of propylene, approximately 90 percent of ethylene and ethylene oxide and more than 80 percent of
chlorine produced internally by Dow. The Company strategically locates its downstream production units near its hydrocarbon
cracking facilities to enable back-integration into feedstocks.
Dow's global scale and feedstock flexibility creates a cost-advantaged foundation for the Company's downstream, market-
driven businesses. In North America, new shale gas opportunities - and the resulting increased supplies and stabilized raw
material prices - have made the Company's ethane- and propane-based production more cost-competitive and also offer cost
benefits to the energy-intensive chlor-alkali manufacturing process. The Company's U.S. and European hydrocarbon cracking
facilities allow Dow to use different feedstocks in response to price conditions. Meanwhile, the Company's U.S. Gulf Coast
investments will strengthen ethylene and propylene integration and establish a platform for growth of Dow's downstream
businesses.
Details on Feedstocks and Energy's 2013 sales, by business and geographic area, are as follows:
Products
A listing of the businesses, with products and key applications/market segments, are listed below:
Business Major Products Applications/Market Segments
Chlor-Alkali /
Chlor-Vinyl
Chlor-Alkali provides cost-advantaged chlorine
and caustic soda feedstock for Dow's performance
businesses
Chlor-Vinyl includes the marketing of caustic
soda, a co-product of the Chlor-Alkali
manufacturing process; ethylene dichloride (EDC)
and vinyl chloride monomer (VCM) essential to
production of polyvinyl chloride (PVC)
Chlor-Alkali - Automobiles, bedding,
electronics, furniture, personal protection
equipment, pharmaceuticals, textiles
Chlor-Vinyl - Agricultural chemicals; alumina,
pulp and paper; bleaches and detergents;
building and construction materials; medical
devices; municipal and residential water piping
systems; pharmaceuticals; textiles
Energy Power, steam and other utilities Principally for use in Dow's global operations
Ethylene Oxide /
Ethylene Glycol
(EO/EG)
Ethylene oxide (EO) feedstock supply for
downstream derivatives; approximately 90 percent
of EO manufactured by Dow is consumed by Dow
businesses or joint ventures
Ethylene glycol (EG) is supplied to MEGlobal, a
50:50 joint venture and a world leader in the
manufacturing and marketing of merchant
monoethylene glycol and diethylene glycol
EO - intermediates that are used in personal
care, household products, paints and coatings,
and oil and gas exploration
EG - aircraft and runway deicers, food and
beverage containers, polyester fiber and
polyester film
Hydrocarbons Ethylene, propylene, benzene, butadiene, cumene,
octene, aromatics co-products, crude C4
Advantaged feedstock positions in the United
States, Canada, Argentina and the Middle East
Product integration ranging from feedstocks and
monomers to a myriad of products used by
derivative businesses