Dow Chemical 2014 Annual Report Download - page 38

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• Univation Technologies, LLC - a United States-based company that develops, markets and licenses the
UNIPOL™ Polyethylene Process Technology and related catalysts, including metallocene catalysts; owned
50 percent by the Company.
Performance Plastics includes a portion of the results of:
• EQUATE Petrochemicals Company K.S.C. - a Kuwait-based company that manufactures ethylene, polyethylene
and ethylene glycol; owned 42.5 percent by the Company.
• The Kuwait Olefins Company K.S.C. - a Kuwait-based company that manufactures ethylene and ethylene glycol;
owned 42.5 percent by the Company.
• Map Ta Phut Olefins Company Limited - effective ownership is 32.77 percent of which the Company directly
owns 20.27 percent (aligned with Performance Materials & Chemicals) and indirectly owns 12.5 percent through
its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited (both part
of The SCG-Dow Group and aligned with Performance Plastics). This Thailand-based company manufactures
propylene and ethylene.
• Sadara Chemical Company - a development-stage Saudi Arabian company that will manufacture chlorine,
ethylene and propylene for internal consumption and will produce and sell high-value added chemical products
and performance plastics; owned 35 percent by the Company.
Divestitures
On December 2, 2013, the Company sold its Polypropylene Licensing and Catalysts business to W. R. Grace & Co. This
business was reported in the Performance Plastics segment through the date of divestiture.
Future Investments
The Company announced a number of investments in the U.S. Gulf Coast to take advantage of increasing supplies of low-cost
natural gas and NGLs derived from shale gas. As a result of these investments, the Company’s exposure to purchased ethylene
and propylene is expected to decline, offset by increased exposure to ethane and propane based feedstocks. The Company
announced investments in a new on-purpose propylene production facility (expected to start-up in mid-2015) and a new, world-
scale ethylene production facility (expected start-up in the first half of 2017), both located in Freeport, Texas. As a result of
these U.S. Gulf Coast investments, Dow’s ethylene production capabilities are expected to increase by as much as 20 percent.
The Company announced the location of four new Performance Plastics production facilities to be built on the U.S. Gulf Coast,
which include an ELITE™ Polymer production facility in Freeport, Texas; a Low Density Polyethylene (LDPE) production
facility in Plaquemine, Louisiana; a NORDEL™ Metallocene EPDM production facility in Plaquemine, Louisiana; and a High
Melt Index (HMI) AFFINITY™ Polymer production facility in Freeport, Texas. Leveraging a low cost ethylene supply from
advantaged feedstock positions from U.S. shale gas, these production facilities will support expected profitable growth of the
Company's high value Performance Plastics franchise.
CORPORATE
Corporate includes certain enterprise and governance activities (including insurance operations, geographic management, risk
management such as foreign currency hedging activities, audit fees, donations, Company branding initiatives, etc.); the results
of Ventures (including business incubation platforms, non-business aligned joint ventures, and venture capital); environmental
operations; gains and losses on the sales of financial assets; severance costs; non-business aligned litigation expenses
(including asbestos-related defense costs and reserve adjustments); and, foreign exchange results.
INDUSTRY SEGMENTS AND GEOGRAPHIC AREA RESULTS
See Note 25 to the Consolidated Financial Statements for information regarding sales, EBITDA and total assets by segment as
well as sales and total assets by geographic area.
SIGNIFICANT CUSTOMERS AND PRODUCTS
All products and services are marketed primarily through the Company’s sales force, although in some instances more
emphasis is placed on sales through distributors. No significant portion of any operating segment's sales is dependent upon a
single customer. No single product accounted for more than five percent of the Company’s consolidated net sales in 2014.