Dow Chemical Looks To Raise $1.5B From Asset Sales
MIDLAND, Mich. (AP) — Dow Chemical wants to raise $1.5 billion in proceeds from the sale of some of its non-core assets over the next 18 months.
The chemical company has been looking for ways to reduce costs, improve cash flow and get as much as it can from asset sales. In October it announced that it would close 20 manufacturing facilities and cut about 2,400 jobs to cope with the sluggish global economy.
Dow Chemical said Thursday that it is actively looking to sell its polypropylene licensing and catalysts unit and its plastics additives division.
The Midland, Mich., company said that since 2009 it has sold non-core businesses with total revenue of about $8 billion. Dow Chemical sold the stabilizers component of its plastics additives division in January. In the same month it signed a deal to sell its 50 percent ownership stake in Nippon Unicar Co., a joint venture in the Dow electrical and telecommunications unit.
Dow Chemical rose 41 cents to $33.62 in afternoon trading.