Dow to end Ashland North American distribution link

5 December 2006 – Dow Chemical will terminate its plastics distribution agreement with Ashland Distribution in North America with effect from March 2007. The arrangement was worth $170m in fiscal 2006, representing about 5% of Ashland’s total materials purchases.

Ashland said that while the Dow change only affects North America, the company also works with Dow in Europe where fiscal 2006 purchases amounted to $60m of plastics, “which could at some point be impacted”, Ashland said.

“While we regret Dow’s decision, we are prepared to respond quickly,” said Ted Harris, Ashland Distribution president. “Because of our partnerships with a variety of global plastics manufacturers, we are prepared to offer our customers a range of convenient options to meet their performance, quality and delivery needs.”

Ashland will act aggressively to retain customers who had been using Dow material in support of its other principals, the Ohio-based company said.