Dallas, Texas 12/03/2013 (Financialstrend) – The $48.49 billion market capped major chemicals manufacturer The Dow Chemical Company (NYSE:DOW) has been attempting to recast its image and its operations from its current known record of a dour chemical manufacturer with a chequered safety and environment compliance record over the past few years.
The chemical manufacturer which has operations spread across continents has attempted to revamp itself by shedding non core business assets and concentrate its efforts and operations around high margin new age technologies and products. On the back of these plans which if executed correctly can transform the firm which is stuck in a rut into a global power house for chemical manufacturing.
In the latest plans which got detailed yesterday, The Dow Chemical Company (NYSE:DOW) has explained that it is looking at divesting its decades long cash cow “Chlorine Operations” as it seeks to exit out of the commodity business which is ridden by erratic cost fluctuations.
Readers should note that these latest announcements are designed to fill in the details to an earlier laid out road up by the company which was made public in October this year. As per the frame work, close ot $3 billion of new funds are being targeted to be raised by selling off assets which are no longer part of The Dow Chemical Company (NYSE:DOW) future growth plan. The Monday’s plans spells out the likely units with a total asset value of $5 billion which are likely to go under the hammer as part of the regig plan. The chemical manufacturer has indicated that all options including “outright sale, divestiture, spinoff and joint venture” are being thoroughly explored by the firm in coordination with its appointed third party advisors.
Stock Markets Indicate Their Approval
On the back of these well though out moves, the stock has registered a solid 2.3% appreciation during trading yesterday.