Dow Chemical Plant: Dow Chemical

Dow Chemical Plant:

Dow Chemical Company is the largest chemicals company in the United States that offers more than 2,000 different products. The mission of Dow Chemical Company is to relentlessly advance the essentials of human development by mastering science and technology. As the largest chemical company, Dow Chemical Company records much of its income from basic chemicals though consumer products, plastics, pharmaceuticals and specialty chemicals are also beneficial to the company.

History of Dow Chemical Company:

The genesis of Dow Chemical Company can be traced to as early as 1890 when Herbert Dow convinced three Cleveland businessmen to be involved in the extraction of bromide from brine. The main idea behind Herbert Dow's project was to mine the enormous underground reservoirs of brine. While Dow focused on refining bromides and other internal chemicals, the brine was being used for salt. Although his first venture failed, the use of electric current by Dow to extract bromides from the brine was innovative. This experiment of electrolysis took place when the electric bulb was largely doubted. Nonetheless, Dow produced bromides and bleaching agents through the construction of prehistoric cells from wood and tar paper.

In the early years, Dow sold bromides abroad, an initiative that resulted in a price war against Deutsche Bromkonvention, German bromide producers. Consequently, a number of American bleach makers went out of business during the price war period. Dow was largely affected by the decision of Deutsche Bromkonvention to significantly reduce the price of their product in the United States. While Dow began to fight for his share in both the domestic and foreign markets, he sank deeper into debt. Nonetheless, Dow purchased the imported German bromides at a low cost and resold them at a higher price in Europe.

Dow was later pushed to manufacture phenol and magnesium following the bromide war. These products were respectively used in explosives and incendiary devices during the World War I, which came after the bromide war. These substances were later significant in the establishment and development of Dow Chemical Company despite the fact that they had limited use outside of munitions. Notably, while phenol became a key component in the production of plastics, magnesium became a key ingredient in aviation history. Dow Chemical Company recorded significant sales of chemicals such as sodium chloride, calcium chloride and chlorine by the year 1920. Due to these large sales of chemicals every year, Dow company stock split four times a decade later.

At the beginning of the great depression, Herbert Dow died and was replaced by Willard Dow, his son. Just like his father, Willard Dow viewed research as key to the company's future instead of production or sales. As a result of Willard Dow's approval of expenditures for research into petrochemicals and plastics, Dow Chemical Company began to produce other substances like iodine and ethylene. This new research by Dow Chemical resulted in significant rewards during World War II as the Company began to expand in readiness for upcoming hostilities prior to America's entrance into the war. Following the merger between Dow and Corning Glass in 1943, Dow Corning was formed. Dow Corning was an instrumental company in the manufacture of silicone products for the army.

After the World War II, Dow Chemical Company was the sixth largest chemical company in the United States with an extensive product line. Most of Dow's products were chemicals used in almost every industry and accounted for half of the company's sales. Plastics, pharmaceuticals, magnesium and agricultural products accounted for the other half of the company's sales. The Company also went heavily into debt during the postwar period because of its expansion programs that required more finances. Dow's expansion was presided over by Lee Doan, Willard Dow's brother-in-law following the death of Willard Dow in a plane crash. The company not only expanded its presence in the European market but it also expanded in Asia following its foreign partnership in Japan.

During the 1960s, Dow Chemical re-arranged its structure to enable the employees to use their own initiatives in production of new products as well as the manufacture of existing products at lower costs. As the strategy became successful, Dow entered into the world of pharmaceuticals after the acquisition of Allied Labs in 1960. Dow Chemical Company recorded an annual increase in earnings by approximately 10% throughout the 1960s.

As the world economy went into recession in 1990, Dow Chemical Company maintained its position in the marketplace. The company achieved this through the continuous production of chemicals at lower costs. In fact, by this time, the company was the leading producer of commodity chemicals and plastics at low costs. While most of the chemical companies engage in a price war and reduce output during recessions, Dow Chemicals didn't reduce their capacity in the hope of fending off weaker competitors ("The Dow Chemical" n.d.).

Through the sales and acquisitions of different assets, Dow Chemical Company continued to reinvent itself in the 1990s through the new millennium. In the early 2000s, Dow expanded its product line through the acquisition of foam manufacturing companies namely General Latex Chemical Corporation, Flexible Products Company and Celotex Corporation. The company also acquired the agricultural branch of Rohm and Haas as part of its strategy to expand its agricultural product line.

In late 2001, Dow Chemical Company was forced to cut down its workforce by 8% due to the global recession of that time. However, the company recorded stronger earnings the following year and was awarded the National Medal of Technology in June 2002. The company has continued to grow since its initial years when it only sold bleach and potassium bromide. Currently, the company has seven major operating sections that produce a variety of products.

In addition to the principles of sustainability, Dow combines chemistry and innovation in measures of addressing global challenges like increasing agricultural productivity, the need for clean water and energy generation and conservation. Currently, Dow offers a wide range of products and solutions to consumers in close to 160 countries. The company also has a workforce of more than 52,000 employees across the globe and more than 5,000 Dow products are manufactured at 214 different sites within 37 countries (Siler, Ernst & Fey n.d.).

Dow Chemical Products:

As mentioned earlier, Dow Chemical Company is one of the leading chemical manufacturing firms across the globe. With manufacturing sites located in the United States, Europe, Africa, Middle East and Asia, Dow's products fall under two major categories which are:

Basic Chemicals:

These chemicals fall under the basic business segment of Dow Chemical Company are internally utilized as raw materials that are sold across the globe. Most of these materials are sold in markets that range from paints and coatings, dry cleaning and food industry. The major products of basic chemicals include chlorine, caustic soda, soda ash, fertilizers, salt, nitric acid, phosphoric acid, sulfuric acid, ethylene glycol, vinyl chloride monomer and calcium chloride.

For the manufacturing of plastics, ethylene oxide, ethylene glycol, propylene oxide and propylene glycol are needed ("Dow Chemical Company" 2009). This category also uses hydrocarbons and energy as major feedstock for propylene and ethylene amongst others and as a result obtains fuels and natural gas liquids.

This broad category of basic chemicals is also known as commodity chemicals and includes petrochemicals, inorganic chemicals and polymers. As compared to other chemicals under this category, polymers are the largest revenue segment contributing up to 33% of the commodity chemicals dollar value. In fact, Dow Chemical Company uses three different types of polymers known as homopolymers, random copolymers and impact copolymers. Homopolymers have a commercial melt flow range of between ~ 0.5 -- 40 dg/min and are the leading cast film grades in the market ("UNIPOL Polypropylene" n.d.).

On the other hand, random copolymers have a melt flow range of ~ 0.1 -- 100 dg/min as wells as molding grades with high clarity. While impact copolymers have the same commercial melt flow rage as the random copolymers, they have a high melt flow and impact resistance. The packaging of films is through the use of the largest-volume polymer product known as polyethylene.

Performance Chemicals:

The performance chemicals of Dow Chemical Company are used to produce chemicals which include calcium chloride and cellulose resins. These performance chemicals are used for various purposes which include water purification, pharmaceuticals, agrochemicals and automotive industries. In the production of agrochemicals and pharmaceuticals, specialty chemicals are used and are generally distinguished by their inventive aspects. These specialty chemicals also known as fine chemicals include chemicals that are highly valued and rapidly growing. The products of specialty chemicals include industrial gases, adhesives, electronic chemicals and coatings. Most importantly, specialty chemicals are largely sold based on what they can do rather than the components of the chemicals.

Under this category of chemicals, Dow Chemical Company also produces performance plastics which are designed for both the automotive and construction industries. These performance plastics that are mainly used in the automotive and construction industries contain chemicals such as polypropylene, polyethylene and polystyrene. Other performance plastic intermediates and products manufactured by Dow include bisphenol a, polyurethane and epichlorohydrin amongst others.

The water solutions business unit of Dow Chemical Company manufactures Film Tec reverse osmosis membranes. These membranes are largely used for water purification for human use and include Dowlex ion exchange resins and Carbowax polyethylene glycols. The agricultural segment of Dow Chemical Company, Dow Agro Sciences, produces various agricultural chemicals and consumer products. This segment is not only responsible for herbicides, insecticides and fungicides, but it also sells different agricultural seeds commercially. On the other hand, consumer products include various chemicals like detergents, soaps and cosmetics.

Product Safety:

Despite the fact that Dow Chemical Company is the world's second largest chemical manufacturing firm, the company is also infamous for production of chemicals that are harmful to human beings. Throughout its history, Dow Chemical Company has from time to time come under serious criticism because of the various harmful effects that some of its products have had on human beings as well as the environment. One of the reasons why this company, its subsidiaries and affiliated companies has been criticized and scrutinized is because Dow Company is largest manufacturer of chlorine in the world. Environmental groups have advocated for the phasing-out of industrial production and use of chlorine.

Although most of Dow Chemical products do not have diverse harmful and potentially harmful chemicals, some of the company's products have had serious effects on the environment. These products include:

Agent Orange:

This is one of the products of Dow Chemical Company that has had harmful effects on human beings. Agent Orange, which is a code name for one herbicides and defoliants produced by Dow, acquired its name (orange) due to the fact that it was shipped to the Vietnam War in orange-striped gallons. The product was largely used in the Vietnam War by the United States military in its herbicidal war program. The product is a mixture of different chemicals which are dichlorophenoxyacetic and trichlorophenoxyacetic acids.

According to scientific research, Agent Orange as well as its components and manufacturing by-products causes serious health effects. Some of the health effects caused by this product include birth defects and still births in mice. As a result of manufacturing Agent Orange in high temperatures, the product becomes contaminated with a dioxin known as tetrachlorodibenzodioxin making it dangerous for human health.

Environmental Hazards:

Dow Chemical Company has also been considered as one of the twelve companies endangering people's lives in the United States. This is because over six million people reside in Dow Chemical's vulnerability zones. The release of hazardous substances to the environment during the manufacturing processes at Dow can reach the level of concern in airborne concentration under specific weather conditions. This is a serious environmental hazard as people living in these zones are at higher risks of being affected by the production of chlorine, hydrocyanic acid and phosgene.

Napalm:

This is the other product that has made Dow Chemical Company infamous. Napalm is a chemical that contains naphthenic and palmitic acids as well as being a gelling agent mixed with gasoline. The product contains various flammable liquids and is generally used in military operations. However, the product has been developed to Napalm B. which is a mixture of polystyrene and benzene. However, Napalm B. causes severe effects when used as an incendiary weapon. Some of the effects caused by napalm include severe burns to the skin and body, unconsciousness and death.

Dibromochloropropane (DBCP):

DBCP is a worm-killing pesticide manufactured by Dow and is mainly used on banana trees particularly in Central America. Though the chemical which contains nematodicide is used in killing worms, it also has effects on human beings. Dow Chemical Company has failed in warning workers of the danger posed by this chemical as it makes the workers sterile. In fact, several West African plantation workers filed lawsuits against the company in 2006 because the pesticide, DBCP, made them to become sterile.

Bendectin:

This product is manufactured by Dow's pharmaceutical subsidiary, Merrell-Dow, as a morning sickness drug for pregnant mothers. However, the product is suspected to have effects on the mothers leading to birth defects.

Other Chemicals:

Dow is also infamous for manufacturing other chemicals that endanger people's lives. These chemicals include vinyl chloride, styrofoam, dioxin, bisphenol -- a (BPA) as well as other chemicals used in the manufacture of plastics (Lenazun 2010).

Safety Measures:

Dow Chemical Company has also been on the fore-front in ensuring that its products and chemicals do not continue to endanger people's lives. In fact, as mentioned earlier, most of the company's chemicals and products do not cause effects on human lives. One of the safety measures taken by the company not to endanger people's lives is the collaboration with BASF to develop the Hydrogen Peroxide to Propylene Oxide (HPPO) technology. Actually, the two companies, Dow and BASF, received the 2010 Presidential Green Chemistry Challenge Award. They were honored for their initiative in improving the production process of propylene oxide, a key chemical intermediate.