By Angela Chen
Dow Chemical Co. agreed to sell its sodium borohydride business
and a polyolefin films plant in Ohio for about $225 million in
total, part of its plan to shed noncore operations.
The Midland, Mich.-based chemical giant is under pressure to
pare back its businesses to focus on high-margin products instead
of commodities. The company aims to raise $7 billion to $8.5
billion from asset sales by mid-2016.
The company plans to sell the sodium borohydride business to
chemical company Vertellus Specialty Materials LLC and the
polyolefin films plant in Findlay, Ohio, to Valfilm North American
Inc. Both sales are expected to close early next year, pending
regulatory approvals.
Dow said in October that it planned to divest the sodium
borohydride business, which includes a manufacturing facility in
Washington, inventory and customer contracts, among other things.
As for the Ohio plant, Dow had said in September that it would
close the facility at the end of January. Valfilm now plans to
restart it in February.
Sodium borohydride is a chemical usually seen in powder form and
is often used in laboratories for uses such as bleaching wood pulp.
And polyolefin is a type of polymer that can be used for heatshrink
electrical insulation.
Falling oil prices have sparked investor concerns about Dow and
other petrochemical manufacturers in the U.S., but Dow's
transformation into a slimmed-down company has been paying off,
with a 43% profit boost in the most recently ended quarter.
The company has faced pressure from activist investor Daniel
Loeb, who has urged the company to split off its petrochemicals
business from segments that make specialty chemicals.
Dow shares have risen 12% this year through Thursday's
close.
Write to Angela Chen at angela.chen@dowjones.com
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