MIDLAND, MICH.--(BUSINESS WIRE)--
The Dow Chemical Company (NYSE: DOW) today announced its next phase of comprehensive investments over the next five years to further enhance its competitive advantage and deliver earnings growth. These investments will stimulate economic activity, primarily in the United States, while also creating a significant number of jobs tied to state-of-the-art manufacturing and infrastructure investments. The Company also continues to accelerate its efforts to train and educate the workforce and close the skills gap for tomorrow’s manufacturing careers.
“Today’s announcement underscores Dow’s commitment to driving the next phase of our growth through a comprehensive set of investments that will benefit our shareholders, customers, employees and the communities in which we operate,” said Andrew Liveris, Dow’s chairman and chief executive officer. “Manufacturing plays a vital role in driving economic growth and prosperity across virtually all sectors of society. The positive investment environment in the U.S. chemical and materials sector, driven by competitive feedstocks and a skilled workforce, is a driver for Dow to further invest in the USA.”
The projects announced today extend Dow’s U.S. growth investments to more than $12 billion over a 10-year period and are expected to employ approximately 5,500 workers at peak activity, as well as 300 permanent jobs. Investments in the United States will support the largest job creation, reaching approximately 3,500 construction jobs and 200 full-time technical, vocational and professional careers. The job creation is also expected to have a multiplier effect, supporting additional employment of nearly 2,000 jobs across the broader economy(1).
“The Trump Administration seeks to drive structural economic reform across the regulatory and tax environments, fair trade and job creation – envisioning an economy that motivates U.S. business to once again focus on domestic growth and restoring America’s long-term competitiveness,” added Liveris. “Dow’s announcement today, as well as our U.S. investments over these past many years, align with this thesis and position our Company to continue strengthening the manufacturing sector and the many industries it supports.”
The investments announced today are expected to come online in a phased manner, beginning in 2020 and will require estimated capital expenditures of approximately $4 billion, spread over the next five years. The primary components of this plan include:
“These multi-phased investment plans, now spanning over more than a decade, enhance our unparalleled, cost-advantage integration and bolster our industry-leading innovation to deliver long-term growth,” said Jim Fitterling, Dow’s president and chief operating officer. “Collectively, these growth drivers position Dow – the world’s leading Materials Science Company – to deliver enhanced products and technologies for our customers while enabling higher quality and more consistent earnings growth and cash flow generation for our shareholders.”
Dow has created more than 10,000 direct and indirect jobs in the United States in the last four years alone. A significant portion of that job creation is the result of the Company’s more than $6 billion of manufacturing investments currently underway on the U.S. Gulf Coast, which employed 7,000 construction workers at the peak. These investments will create 500 full-time Dow jobs and further support more than 3,000 jobs in the broader U.S. economy.
Along with the significant job creation enabled by these projects, Dow also continues to accelerate its partnerships with leading colleges and technical and vocational institutions to train thousands of young and displaced workers to deliver the workforce of tomorrow. One example is Dow’s Apprenticeship Program, which was recently registered by the U.S. Department of Labor as having approved National Standards of Apprenticeship, and offers a pathway to a wide variety of manufacturing careers through both formal education and on-the-job training. The program currently hosts more than 500 apprentices and to date has graduated nearly 3,000 apprentices into well-paying jobs. The Company also continues to attract top-tier talent with advanced degrees to drive greater innovation and further amplify the value creation of its growth investments. Since 2010, Dow has hired more than 600 new Ph.D.s and post-doctorates from the top 20 U.S. technology universities alone. Today, approximately 35 percent of Dow’s workforce has an advanced degree.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from material, polymer, chemical and biological science to help address many of the world's most challenging problems, such as the need for fresh food, safer and more sustainable transportation, clean water, energy efficiency, more durable infrastructure, and increasing agricultural productivity. Dow's integrated, market-driven portfolio delivers a broad range of technology-based products and solutions to customers in 175 countries and in high-growth sectors such as packaging, infrastructure, transportation, consumer care, electronics, and agriculture. In 2016, Dow had annual sales of $48 billion and employed approximately 56,000 people worldwide. The Company's more than 7,000 product families are manufactured at 189 sites in 34 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
(1) The American Chemistry Council estimates that every job created from the business of chemistry creates more than 6 jobs in other sectors across the rest of the economy.
Note: The forward looking statements contained in this document involve risks and uncertainties that may affect Dow’s operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission (“SEC”). These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that Dow’s expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
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Copyright Business Wire 2017