Dow Chemical 2015 Annual Report Download - page 27

17
PRINCIPAL PARTLY OWNED COMPANIES
Dow’s principal nonconsolidated affiliates at December 31, 2015, including direct or indirect ownership interest for each, are
listed below:
Principal Nonconsolidated Affiliate Ownership
Interest Business Description
Dow Corning Corporation (1) 50.00% A U.S. company that manufactures silicone and silicone
products
EQUATE Petrochemical Company K.S.C. (2) 42.50% A Kuwait-based company that manufactures ethylene,
polyethylene and ethylene glycol, and manufactures and
markets monoethylene glycol, diethylene glycol and
polyethylene terephthalate resins
The Kuwait Olefins Company K.S.C. 42.50% A Kuwait-based company that manufactures ethylene and
ethylene glycol
The Kuwait Styrene Company K.S.C. 42.50% A Kuwait-based company that manufactures styrene
monomer
Map Ta Phut Olefins Company Limited (3) 32.77% A Thailand-based company that manufactures propylene and
ethylene
Sadara Chemical Company 35.00% 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
The SCG-Dow Group:
Siam Polyethylene Company Limited 50.00% A Thailand-based company that manufactures polyethylene
Siam Polystyrene Company Limited 50.00% A Thailand-based company that manufactures polystyrene
Siam Styrene Monomer Co., Ltd. 50.00% A Thailand-based company that manufactures styrene
Siam Synthetic Latex Company Limited 50.00% A Thailand-based company that manufactures latex
(1) On December 10, 2015, the Company entered into a definitive agreement to restructure the ownership of Dow Corning. Under the terms
of the agreement, Dow will become the 100 percent owner of Dow Corning, currently a 50:50 joint venture between Dow and Corning.
Dow and Corning will maintain their current equity stake in the Hemlock Semiconductor Group. The transaction is expected to close in
the first half of 2016.
(2) On December 23, 2015, the Company sold its 50 percent ownership interest in MEGlobal to EQUATE. Dow indirectly owns
42.5 percent of MEGlobal through its equity interest in EQUATE. MEGlobal was treated as a separate principal nonconsolidated
affiliate through the date of divestiture.
(3) The Company's effective ownership of Map Ta Phut Olefins Company Limited is 32.77 percent, of which the Company directly owns
20.27 percent and indirectly owns 12.5 percent through its equity interest in Siam Polyethylene Company Limited and Siam Synthetic
Latex Company Limited.
See Note 9 to the Consolidated Financial Statements for additional information regarding nonconsolidated affiliates.
FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS AND EXPORT SALES
In 2015, the Company derived 65 percent of its sales and had 38 percent of its property investment outside the United States.
While the Company’s international operations may be subject to a number of additional risks, such as changes in currency
exchange rates and geopolitical risks in emerging geographies, the Company does not regard its foreign operations, on the
whole, as carrying any greater risk than its operations in the United States. Information on sales and long-lived assets by
geographic area for each of the last three years appears in Note 26 to the Consolidated Financial Statements, and discussions of
the Company’s risk management program for foreign exchange and interest rate risk management appear in Part I, Item 1A.
Risk Factors; Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk; and Note 11 to the Consolidated
Financial Statements.
PROTECTION OF THE ENVIRONMENT
Matters pertaining to the environment are discussed in Part I, Item 1A. Risk Factors; Part II, Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations; and Notes 1 and 15 to the Consolidated Financial Statements.
In addition, detailed information on Dow's performance regarding environmental matters and goals can be found online on
Dow's Sustainability webpage at www.dow.com. The Company's website and its content are not deemed incorporated by
reference into this report.