Dow Chemical Co. (Midland, MI) will restructure its leadership to support its aggressive growth strategy and prepare for its anticipated merger with Union Carbide Corp. Seven of the eight new leaders will come from Dow and one will come from Union Carbide.
"We are putting in place a new organizational structure and leadership team that will continue Dow's drive to be more agile, increasingly customer-focused and results-oriented," says company president/CEO William S. Stavropoulos. He says the new structure will enable Dow to prepare for the Carbide merger and present a single face to the market immediately after the deal closes.
The new structure will group the global business units and value centers of both Dow and Union Carbide under eight newly-appointed business presidents who will have both corporate and business leadership responsibilities.
"Our current leadership structure served us well as we went through the first phase of our strategic transformation, which focused on globalizing and becoming a world-class competitor," Stavropoulos explains.
The organizational moves also strengthen Dow's leadership pool by creating new and expanded opportunities for future leaders.
The eight business presidents and their responsibilities are:
Kathleen M. Bader, currently corporate VP, Quality and Business Excellence, will have responsibility for polystyrene, fabricated products, engineering plastics, and rubber products. She will continue to lead Dow's six-sigma drive.
Charles Fischer will continue in his role as president, Dow AgroSciences.
Ed F. Gambrell, currently business VP, INSITE* technology, will assume corporate leadership for Dow's market-facing business units, including Dow Automotive and New Business Growth. In this role, he will be responsible for the Growth Center, Business Intelligence Center, market research, and the marketing and Sales Technology Center.
Romeo Kreinberg, currently polyethylene business VP, will have responsibility for the polyethylene and polypropylene businesses of Union Carbide and Dow; ethylene-styrene interpolymers (ESI); PET/PTA; INSITE* technology; and Union Carbide's wire and cable business.
Andrew N. Liveris, currently specialty chemicals business VP, will have responsibility for Dow's specialty chemicals and emulsion polymers businesses as well as all of Union Carbide's specialty polymers and products, industrial performance chemicals, and UCAR emulsion polymers businesses. Liveris will also have responsibility for glycol ethers and acrylate esters from Union Carbide's Solvents, Intermediates and Monomers business.
Lee P. McMaster, currently corporate VP/GM of Union Carbide's Specialty Polymers and Products business, will head Dow's Chemicals businesses. This includes chloralkali assets, EDC-VCM-ECU management, chlorinated solvents, propylene glycol, calcium chloride/magnesium hydroxide, environmental operations, and Union Carbide's Solvents, Intermediates, and Monomers business. He will also have responsibility for the combined licensing businesses of the two companies. His appointment is contingent upon receiving regulatory approvals related to the merger of Union Carbide.
Theo Walthie, currently Hydrocarbons and Energy business VP, will have responsibility for the combined Hydrocarbons and Energy and Ethlyene Oxide/Ethylene Glycol businesses of Dow and Union Carbide.
Robert L. Wood, currently Polyurethanes business VP, will have responsibility for polyurethanes, propylene oxide assets, polyurethanes systems houses, epoxy products and intermediates, and Concepture.
Current reporting lines for the new business presidents will remain in place until Nov. 1, 2000. After that, seven of the eight business presidents will report directly to incoming CEO Michael D. Parker. Fischer, who heads Dow AgroSciences, will report to Dow executive VP and chief financial officer J. Pedro Reinhard.
The newly appointed business presidents will begin to assume their responsibilities over the coming months, with the exception of McMaster. He will assume his role following regulatory approvals of the merger. During this time, the other seven group presidents will further define the organization of the businesses and value centers that they lead. Dow will continue to implement its strategy to preferentially invest in performance businesses while keeping the basics businesses strong.
Dow's management executive committee will oversee the reorganization and the integration of Union Carbide. It is comprised of Stavropoulos, Parker, Anthony J. Carbone, and Reinhard.
Complete implementation of this new organization is contingent upon receiving regulatory approvals related to the merger of Union Carbide and the subsequent closing of that deal. Dow anticipates receiving regulatory approvals in the second quarter.
Edited by Alan S. Brown
