Dow Chemical Company facts for kids
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| Public | |
| Traded as | |
| Industry | Chemicals |
| Founded | 1897 (original company) April 1, 2019 (current iteration) |
| Founder | Herbert Henry Dow |
| Headquarters | Midland, Michigan, U.S. |
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Area served
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Worldwide |
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Key people
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| Products | Chemicals, plastics, performance chemicals, catalysts, coatings, hydrocarbon exploration |
| Revenue |  US$44.62 billion (2023) |
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Operating income
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US$656 million (2023) |
| US$589 million (2023) |
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| Total assets | US$57.97 billion (2023) |
| Total equity | US$18.61 billion (2023) |
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Number of employees
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c. 35,900 (2023) |
| Subsidiaries |
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Dow Inc. is a big American company that makes chemicals. Its main office is in Midland, Michigan, in the United States. In 2021, it was one of the three largest chemical makers in the world. The company you might know as The Dow Chemical Company is actually a part of Dow Inc.
Dow works in about 160 countries and has around 36,000 employees. Dow is often called the "chemical companies' chemical company." This is because it mostly sells its products to other businesses, not directly to people like you and me. Dow is also a member of the American Chemistry Council.
In 2015, Dow and another chemical company called DuPont decided to join together. Then, they planned to split into three different companies. This plan started in 2017 when Dow and DuPont merged to form DowDuPont. The final step happened in April 2019. The part of the company that makes materials became a new, independent company called The Dow Chemical Company.
Contents
- How Dow Started and Grew
- What Dow Makes
- Dow's Money Matters
- Dow's Environmental Efforts
- Who is on Dow's Board of Directors?
- Dow's Sponsorships
- Working with Others
- Companies Dow Owns in Part
- Famous People Who Worked at Dow
- See also
How Dow Started and Grew
Early Days of Dow
Dow was started in 1897 by a chemist named Herbert Henry Dow. He invented a new way to get bromine from salty water found deep underground in Midland, Michigan. At first, the company only sold bleach and a chemical called potassium bromide. By 1902, they were making 72 tons of bleach every day!
Early on, some British companies tried to make Dow go out of business by selling bleach for very low prices. Dow fought back by lowering its own prices. Even though they lost money, they started making many different products.
In 1905, German companies tried to stop Dow from selling bromides in Europe. They sold bromides very cheaply in the U.S. But Dow bought these cheap German bromides and sold them back in Europe. This made it harder for the German companies. From the beginning, Dow was good at making many different things. Within 20 years, Dow was a big producer of chemicals for farms, chlorine, and magnesium metal.
During World War I, Dow made many materials that the U.S. used to get from Germany. Dow produced magnesium for flares, chemicals for explosives, and bromine for medicines. By 1918, 90% of what Dow made was for the war. Around this time, Dow created its famous diamond logo. After the war, Dow kept working with magnesium. They made special car pistons that helped cars go faster and use less fuel. These "Dowmetal" pistons were popular in race cars. The winner of the 1921 Indianapolis 500 even used them!
In the 1930s, Dow started making plastics. This would become one of their most important businesses. Their first plastic products were made in 1935 and 1937.
Growing Bigger and Making More Things
From 1940 to 1941, Dow built its first factory in Freeport, Texas. This plant made magnesium from seawater. The Freeport plant is now Dow's largest site and the biggest chemical factory in the U.S. It grew quickly, soon making power, chlorine, and other chemicals. This made Dow very important during World War II because magnesium was needed for light parts in aircraft.
In 1942, Dow started to expand outside North America. They formed Dow Chemical of Canada to make styrene for synthetic rubber. Also during the war, Dow and Corning started a joint company called Dow Corning. This company made silicones for military use and later for everyday products.
After the war, Dow kept expanding globally. They opened their first overseas office in Japan in 1952. Dow also started a consumer products division, selling things like Saran wrap in 1953. Because their chemical and plastic businesses grew so much, Dow's sales went over $1 billion in 1964 and $2 billion in 1971.
Dow and Important Events
Working at Rocky Flats
From 1951 to 1975, Dow managed the Rocky Flats Plant near Denver, Colorado. This was a special factory that made parts for hydrogen bombs.
The factory had problems with pollution from fires and leaks of radioactive waste. In 1957, a fire spread radioactive dust into the air.
Later, in 1990, people living nearby sued Dow and another company because of the pollution. The case was settled in 2017.
Napalm and Agent Orange
The U.S. military used napalm bombs during the Vietnam War. Dow was one of the companies that made napalm B starting in 1965. Other companies stopped making it because of protests. Dow decided to keep making it, saying their main duty was to the government. Even with protests and boycotts, Dow continued making napalm B until 1969.
Agent Orange, a chemical that removed leaves from trees, was also made by Dow. It was used by the British military and the U.S. military during the Vietnam War. In 2005, some Vietnamese people who were affected by Agent Orange sued Dow. The lawsuit was dismissed.
The Bhopal Disaster
The Bhopal disaster happened in 1984 at a pesticide factory in Bhopal, India. This factory was owned by a company called Union Carbide India Ltd., which was a part of Union Carbide. A cloud of gas leaked from the factory and spread to nearby neighborhoods. More than half a million people lived there.
Many people died, and hundreds of thousands were injured. The Indian government sued Union Carbide, and they agreed to pay $470 million in 1989. In 2001, Dow Chemical bought Union Carbide. Some people want Dow Chemical to clean up the factory site, which is now controlled by the state of Madhya Pradesh.
Tax Issues
In 2013, a court said that Dow had used some special financial deals to avoid paying about $1 billion in taxes. The court said these deals were made to find weaknesses in tax laws, not for real business reasons. Dow said they had paid all the taxes they owed.
Price Fixing
Dow Chemical was involved in a situation where they worked with other companies to keep the price of polyurethane high. This made customers pay more. In 2013, a lawsuit was won against Dow. Dow settled the lawsuit in 2016 for $835 million.
Changes and Growth
Mergers and New Directions
In the early 1990s, Dow changed how it was organized. Instead of being run by different regions, it started to group similar businesses together worldwide.
In 1999, Dow agreed to buy Union Carbide for $9.3 billion. This made the combined company the second-largest chemical company at the time. Some people were worried about this because of the problems Union Carbide had with the Bhopal disaster.
Big Changes in the 2000s
In 2006, Dow announced it would close factories in five places, including Sarnia, Ontario, Canada. This Sarnia site was Dow's first factory in Canada. It had been important during World War II for making materials for synthetic rubber.
In 2007, Dow planned a big change. They wanted to sell half of their interest in five global businesses to a company from Kuwait. This deal, called K-Dow, was supposed to bring in $9.5 billion. However, the Kuwaiti company canceled the deal in December 2008 because of a worldwide economic downturn.
Buying Rohm & Haas
On July 10, 2008, Dow agreed to buy another company called Rohm and Haas Co. for $15.4 billion. This deal was meant to help Dow focus more on "specialty chemicals," which are harder to make and bring in more profit. Many people on Wall Street thought Dow paid too much for the company. The deal was completed on April 1, 2009.
Merging with DuPont and Splitting Again
On December 11, 2015, Dow announced it would merge with DuPont. The new company was called DowDuPont and was worth about $130 billion. The plan was to split DowDuPont into three separate public companies within two years. These companies would focus on agriculture, chemicals, and special products.
In 2019, DowDuPont officially split up. This created Dow Inc. as an independent company.
Focus on Special Products
Dow Chemical has started to sell off businesses that make basic chemicals, like those used for plastic bags. These products don't make as much profit. Instead, Dow is focusing on special chemicals that earn higher profits.
Dioxin Contamination
In November 2006, areas along Michigan's Tittabawassee River, near Dow's main factory in Midland, were found to have high levels of dioxin. Dioxin is a chemical that can cause cancer. The dioxin was deep in the riverbed. People who ate a lot of fish from the river had slightly higher levels of dioxin in their blood.
In 2007, Dow agreed with the Environmental Protection Agency to remove contaminated material from the river. In 2008, Dow and the EPA agreed to set up a special fund to clean up the Tittabawassee River and nearby areas.
2020 Evacuation
In May 2020, Dow Chemical and many other areas in Midland County, Michigan had to evacuate. This was because of major flooding caused by the breaking of two dams after heavy rainfall.
What Dow Makes
Dow makes a lot of plastics, including polystyrene, polyurethane, polyethylene, and polypropylene. These are used in many everyday items. They also make synthetic rubber. Dow is a big producer of chemicals used in water purification, medicines, paints, and electronics.
Some of Dow's well-known consumer products like Saran wrap and Ziploc bags were sold to another company in 1997.
Plastics for Performance
About 25% of Dow's sales come from "performance plastics." These are special plastics used in cars and buildings. They include plastics like polyethylene and polypropylene. Dow also makes polystyrene, which is used to create Styrofoam insulation.
Special Chemicals
"Performance chemicals" make up 17% of Dow's sales. These chemicals and materials are used for things like cleaning water, making medicines, paper coatings, paints, and advanced electronics.
Cleaning Water
Dow Water and Process Solutions (DW&PS) is a part of Dow that makes special membranes. These membranes are used to clean water, especially for drinking, in places like the Middle East. This technology was used in the 2000 Summer Olympics and 2008 Summer Olympics.
Farm Science
"Agricultural Sciences" (or Dow AgroSciences) makes up 7% of sales. This part of Dow creates insecticides (like Lorsban), herbicides, and fungicides for farms. Seeds from genetically modified plants are also a growing area for the company. Dow AgroSciences sells seeds under brands like Mycogen and PhytoGen. This business unit became a separate company called Corteva Inc in 2019.
Basic Plastics
"Basic plastics" make up 26% of sales. These plastics are used in many things, from diaper liners to drink bottles. They include polystyrene, polyethylene, and polypropylene.
Basic Chemicals
"Basic chemicals" are 12% of sales. Dow uses these chemicals itself and also sells them worldwide. They are used in dry cleaning, paints, and the food industry. Important products include ethylene glycol, caustic soda, and chlorine.
Energy and Hydrocarbons
The "Hydrocarbons and Energy" part of Dow (13% of sales) manages energy for the company. They also get fuels and oil-based raw materials. This group provides important materials like ethylene and propylene that Dow uses to make plastics.
Hand Sanitizer
In March 2020, during the Coronavirus outbreak, Dow increased its production of hand sanitizer in Europe. They gave this product for free to hospitals.
Dow's Money Matters
| Business | share |
|---|---|
| Packaging and Specialty Plastics | 51.9% |
| Industrial Intermediates and Infrastructure | 28.1% |
| Performance Materials and Coatings | 19.0% |
| Corporate | 1.0% |
| Business | share |
|---|---|
| United States | 34.4% |
| Europe, Middle East, Africa and India | 32.6% |
| Asia Pacific | 18.5% |
| Latin America | 11.6% |
| Canada | 2.9% |
In 2023, Dow Chemicals made about $0.6 billion in profit, with total sales of $44.9 billion.
| Year | Revenue in million USD$ |
Net income in million USD$ |
Total Assets in million USD$ |
|---|---|---|---|
| 2016 | 48,158 | 4,318 | 79,511 |
| 2017 | 43,730 | 465 | 79,940 |
| 2018 | 49,604 | 4,641 | 83,699 |
| 2019 | 42,951 | (1,359) | 60,524 |
| 2020 | 38,542 | 1,216 | 61,470 |
| 2021 | 54,968 | 6,279 | 62,990 |
| 2022 | 56,902 | 4,558 | 60,603 |
| 2023 | 44,622 | 578 | 57,967 |
Dow's Environmental Efforts
In 2003, Dow agreed to pay $2 million to New York state. This was the largest fine ever in a pesticide case at the time. It was because Dow had made claims about its pesticides being safe that were not allowed. Dow said they didn't admit to doing anything wrong, but settled to avoid a long court fight.
The United States Environmental Protection Agency (EPA) says Dow is partly responsible for 96 "Superfund" sites in the U.S. These are places with toxic waste that need cleaning up. Most of these sites are shared with other companies. Many of these sites have been cleaned up or are in the process of being cleaned up.
In 2007, Dow received an award for its efforts in saving energy. Between 1995 and 2005, Dow used 22% less energy to make its products. This saved enough electricity to power eight million U.S. homes for a year! That same year, Dow's company, Dow AgroSciences, won an award for helping to replace a chemical that harmed the ozone layer. In 2008, the EPA named Dow an "Energy Star Partner of the Year" for its good work in managing energy and reducing greenhouse gas emissions.
Carbon Footprint
Dow Chemical Company reported its total carbon dioxide emissions for 2020 as 33,100 kilotonnes. They plan to reduce their emissions by 15% by 2030 compared to 2019 levels.
| Dec 2018 | Dec 2019 | Dec 2020 |
|---|---|---|
| 36,000 | 32,400 | 33,100 |
Who is on Dow's Board of Directors?
The board of directors helps guide the company. Here are some of the people on Dow's board today:
- Samuel R. Allen – chairman and former CEO, Deere & Company
- Ajay Banga – president & CEO MasterCard
- Jacqueline Barton – chemistry professor, California Institute of Technology
- James A. Bell – former president and CFO Boeing
- Wesley G. Bush – chairman, Northrop Grumman
- Richard K. Davis – chairman and CEO of U.S. Bancorp; Make-A-Wish chairman
- Jeff Fettig – former chairman and CEO, Whirlpool Corp.
- Jim Fitterling – Dow Inc. chairman and CEO
- Jacqueline Hinman – former chairman, president and CEO of CH2M Hill
- Jill S. Wyant – EVP and president of global regions, Ecolab, Inc.
- Daniel W. Yohannes – former U.S. Ambassador to the Organisation for Economic Co-operation and Development
Dow's Sponsorships
In July 2010, Dow became a worldwide partner of the Olympic Games until 2020.
In 2004, Dow bought the naming rights for the Saginaw County Event Center in Saginaw. It's now called the Dow Event Center. The Saginaw Spirit hockey team plays there.
In 2006, Dow bought the naming rights for the baseball stadium in its hometown of Midland, Michigan. It's called Dow Diamond, and the Great Lakes Loons baseball team plays there.
Since 2014, Dow has also sponsored Austin Dillon's #3 Chevrolet car in the NASCAR Cup Series.
Working with Others
Lab Safety Academy
On May 20, 2013, Dow launched the Dow Lab Safety Academy. This website has many videos and resources about safety in science labs. The goal is to help university students learn about safety and develop a "safety mindset" for their future jobs. Dow made the content free for everyone.
Nature Conservancy
In January 2011, The Nature Conservancy and The Dow Chemical Co. announced they would work together. They want to include the value of nature in business decisions. Scientists from both groups are working at different locations to find ways to make business decisions that are better for nature. This includes thinking about water, land, air, and animal life.
Companies Dow Owns in Part
Dow partly owns several companies, including:
- EQUATE Petrochemical Co. K.S.C.C.
- The Kuwait Olefins Company K.S.C.C.
- The Kuwait Styrene Company K.S.C.C.
- Map Ta Phut Olefins Company Limited
- SCG-DOW Group
- Sadara Chemical Company
- Dow Toray Co., Ltd. (a joint company with Toray Industries)
Famous People Who Worked at Dow
Many interesting people have worked at Dow, including:
- George Becker, a former leader of the AFL-CIO labor union.
- Buddy Burris, a professional football player.
- Larry Garner, a blues musician.
- Bettye Washington Greene, the first African-American female chemist at Dow.
- Ray McIntire, the inventor of Styrofoam.
- George Andrew Olah, who won the 1994 Nobel Prize in Chemistry.
- Joseph Overton, who created the idea of the Overton window in political science.
- Forrest Parry, the inventor of the magnetic stripe card.
See also
In Spanish: Dow Chemical Company para niños
