Dow Chemical 2014 Annual Report Download - page 35

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Details on Performance Materials & Chemicals' 2014 sales, by business and geographic area, are as follows:
Chlor-Alkali and Vinyl
The Chlor-Alkali and Vinyl business provides cost-advantaged chlorine and caustic soda supply and integration for Dow’s
performance businesses, including Chlorinated Organics, Crop Protection, Epoxy and Polyurethanes. Approximately 90 percent
of the chlorine produced internally by Dow is consumed within the Performance Materials & Chemicals segment. Chlor-Alkali
and Vinyl also includes the marketing of caustic soda, a valuable co-product of the chlor-alkali manufacturing process, and
ethylene dichloride and vinyl chloride monomer, essential for the production of polyvinyl chloride.
Chlorinated Organics
The Chlorinated Organics business is a recognized leader in supplying chlorinated organic products and solutions for safe and
sustainable uses, such as intermediates or feedstocks to produce electronics, agricultural products and fluoropolymers and non-
ozone depleting refrigerants.
Epoxy
The Epoxy business is a global supplier of epoxy resins, curing agents, intermediates and systems which serve a diverse array
of industries and market sectors, including electrical laminates, civil engineering, composites, industrial coatings, infrastructure
and consumer goods.
Industrial Solutions
The Industrial Solutions business enables manufacturing of the world’s goods and services with additive solutions that
minimize friction and heat in mechanical processes, manage the oil and water interface, deliver active ingredients for maximum
effectiveness, facilitate dissolvability and provide the foundational building blocks for the development of chemical
technologies. The business supports industrial manufacturers associated with virtually all end-markets, notably electronics,
agricultural chemicals, engine/heavy equipment, coatings, adhesives and inks, and detergents and cleaners. Industrial Solutions
is also the world’s largest producer of purified ethylene oxide. Approximately 80 percent of the ethylene oxide produced by
Dow is consumed within the Performance Materials & Chemicals segment.
Polyurethanes
Polyurethanes is comprised of four businesses: Isocyanates, Polyols, Polyurethane Systems and Propylene Oxide/Propylene
Glycol ("PO/PG"). The Polyurethanes business is the world’s largest producer of propylene oxide and propylene glycol as well
a leading producer of polyether polyols and aromatic isocyanates that serve energy efficiency, consumer comfort and industrial
market sectors. Propylene oxide is produced using the chlorohydrins process as well as by hydrogen peroxide to propylene
oxide manufacturing technology(1). Performance Materials & Chemicals businesses consume approximately 90 percent of the
propylene oxide produced or procured by Dow.
Competition
Competition for the Performance Materials & Chemicals segment varies based on the business. Key competitors include large,
international chemical companies as well as chemical divisions of major national and international oil companies. Performance
Materials & Chemicals back-integration into feedstocks supports a low-cost manufacturing base and consistent, reliable
product supply. Dow is a full-service supplier with a global technical service network located close to the customer, which
allows the Company to fuel growth in specialty applications and collaborate with customers to invent unique chemistries and
tailored solutions. In addition to its competitive cost position, reliable supply and superior customer service, the Company also
(1) Hydrogen peroxide to propylene oxide manufacturing technology is utilized by MTP HPPO Manufacturing Company Limited, a
Thailand-based consolidated variable interest entity ultimately owned 50 percent by the Company and 50 percent by SCG Chemicals
Co. Ltd.; and BASF DOW HPPO Production B.V.B.A., a Belgium-based joint venture ultimately owned 100 percent by HPPO Holding
& Finance C.V., which is owned 50 percent by the Company and 50 percent by BASF.