America's second-largest chemical company, Dow Chemical, is organized into four major divisions: chemicals, plastics, hydrocarbons and energy; and into diversified businesses such as Dow Brands and Radian International. The world leader in plastics, Dow's product line ranges from Ziploc bags and Saran Wrap to "performance" plastics such as Calibre polycarbonate resins. Recent streamlining has allowed the company to remain focused on the chemical innovations that have earned Dow its reputation.

When past and present collide

Dow has always had an international outlook. Herbert Dow founded the company in 1897 when he began to sell his chemical products on the world market. Dow's entry into the consumer market with plastics and silicone products during the 1950s launched the company into the top ranks of the industry. Since the early 1990s, Dow Corning, the joint venture of Dow Chemical and Corning, has been plagued with lawsuits that accused the company of inappropriately testing their breast implants before releasing them to the public. The company stopped producing the implants in 1992, but entered Chapter Eleven bankruptcy in May 1995. While the company maintains that the implants do not pose a danger for women, it nonetheless settled a bankruptcy-reorganization plan in December 1999 that paid $3.2 billion to 300,000 women with claims against Dow and $1.3 billion to commercial creditors.

Expanding its doors

Dow Chemical is expanding its global productivity with the help of international companies. In May 1999, the company opened what is being hailed as the largest-capacity polyehtylene plant in the world in Map Ta Phut Industrial Estate, Thailand. The plant holds 300,000 tons of polyethylene and is used to supply the growing thermoplastics market in Southeast Asia. To expand its international trade of chemical products, Dow Chemical opened the joint venture company Shenzhen Sino-American with Shenzhen OCT Petroleum Trading Corporation. The joint venture allows Dow Chemical access to any port in China, saving the company time and money and increasing customer satisfaction.

Additionally, Dow has signed a five-year contract with Dead Sea Bromine, a subsidiary of Israel Chemicals, to supply the company with flame retardants. This is an additional step in Dow's plan to expand its manufacturing capacity. Dow also expects to work with Israel Chemicals in fields such as agriculture and water treatment in the future. Also, Dow announced in August 1999 that it would merge with Union Carbide in a deal worth $11.6 billion. The sizable transaction, when completed, will put Dow just behind DuPont as the largest chemical manufacturer in the country, and second to DuPont in world wide sales.

The merger, though expected to be approved, has hit its share of snags along the way. First, the European Union had reservations about the merger, but after being appeased by the companies' divestments earlier in 2000, the EU gave its blessing to the two companies. Just as the deal was about to be sealed, the FTC and the Canadian Competition Bureau stepped in and requested additional information, pushing the completion date back to sometime during the third quarter of 2000.

Nature vs. the biotechnical age

In 1999, the European Union has put pressure on Dow Chemical because of the increasing amounts of genetically altered food that Dow produces. The EU fears health risks from the products. This pressure may lead to future trade disagreements between leading American food producers and the European Union as the trend in biotechnical-based food production increases. Consumers nationwide have also echoed the concerns of the European Union as efficient and cost-saving processes gradually replace natural agrochemical growing.