Dow Going "Green" with Styrofoam - Analyst Blog

Dow Chemical (DOW) has concluded its two-year project to transform its line of energy-saving insulation and air sealing products to a more sustainable manufacturing technology in North America. The company expects the new technology to reduce its greenhouse gas emissions resulting from the production of STYROFOAM™ brand insulation at all of its converted production facilities in that region.

Dow stated that its iconic Blue™ STYROFOAM™ insulation helps conserve energy and reduce carbon dioxide emissions from homes and buildings. Currently, the emissions from buildings and homes account for more than 40% of all greenhouse gas emissions.

Dow’s STYROFOAM™ brand extruded polystyrene foam insulation is a part of the Dow Building Solutions business unit under the Performance Plastic segment. The business unit offers building science expertise to help builders, designers, architects and homeowners reduce energy costs and protect against wind, rain and moisture, while contributing to the reduction of greenhouse gas emissions.

Dow claims to be the first insulation manufacturer in North America to develop a next-generation foaming agent solution to meet mandatory requirements. Dow has converted all production facilities in North America to the new foaming agent technology, which is zero ozone-depleting and contains no-VOCs (volatile organic compounds).

Dow continues to contribute to the development of energy alternatives across various industries by investing in the development of materials, technologies and business strategies that enable breakthrough solutions. In 2009, Dow had also that announced it is making solar power an attainable, real, clean energy possibility for consumers through the development of solar technologies like DOW™ POWERHOUSE™ Solar Shingles. Through investment in its joint venture, Dow Kokam, the company is developing next generation battery technology to power hybrid and electric vehicles.

The Dow Chemical Company is the second largest chemical manufacturer in the world, offering a range of chemical, plastic and agricultural products and services. The company’s Performance Plastics segment produces polyolefins such as polyethylene and polypropylene, besides polystyrene most often seen in Styrofoam insulating material. The company manufactures epoxy resin intermediates and products including bisphenol A and epichlorohydrin. Polyurethane, polyether polyols and specialty acrylates are all derived from ethylene oxide (EO).

Dow also produces many agricultural chemicals and is best known for its consumer products including Styrofoam brand insulation. Agricultural Sciences (Dow Agro Sciences) provided a range of insecticides, herbicides and fungicides.

We have a Neutral recommendation on the stock.
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