Dow Chemicals launches new company

Dow Construction Chemicals launched after Rohm & Haas acquisition

Dr Burkhard Kressdorf, commercial director EMEA, Dow Construction Chemicals.
Dr Burkhard Kressdorf, commercial director EMEA, Dow Construction Chemicals.

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The Dow Chemical Company has launched its new Dow Construction Chemicals business at The Big 5, following the acquisition of Rohm and Haas.

The new company will combine the assets of Rohm and Haas with the Dow Wolff Cellulosics division of the firm, in order to better service the needs of the construction sector.

“From the Rohm and Haas side there comes a big part of the business and expertise on latex, the wet ready to use chemicals. We are combining and increasing our scope,” stated Dr Burkhard Kressdorf, commercial director EMEA, Dow Construction Chemicals.

Rohm and Haas was acquired back in April this year. Dow believes the timing of the new company will provide both a challenge and an opportunity. “There is no denying we are in a crisis. From my understanding the crisis in this area it is not as deep as it is in other areas.

“But this can be a good time as well, it is a time when you can work with customers and develop products so it is a time where you can improve,” said Kressdorf.

Kressdorf added that the acquisition went relatively smoothly for such a huge deal. Rohm and Haas was a US$10 billion company and there was integration needed across many manufacturing sites and sales offices. This has bought with it clear positives. “This is an advantage because we get a bigger reach, and we have a larger size. We have an organisation for the first time only concentrated on construction chemicals,” said Kressdorf.

“Our intention is to have our customers benefit from having more expertise. We are a business to business company and we are concerned about what customers need and what they require specifically in this region and what they need in terms of regulations,” he added.

The new company will operate worldwide, with its Middle East based in Dubai. The company will use the Dow network of offices in order to operate in this region.

Following the launch of the new firm, Dow Construction Chemicals is targeting certain key areas within the Middle East.

“We are definitely targeting Saudi, it is the next challenge I would say. Dubai was an exceptional situation with a relatively small area being developed so fast and so intense but the building sector is very much related to population and Saudi is a high population country with a lot of projects and this is really where a lot of the future focus is on,” revealed Kressdorf.

Kressdorf also explained that the future of building materials now lies undoubtedly with prefabricated materials being brought onto site.

“You can build for centuries with cement and sand but that is an approach where you cannot guarantee quality because you are always changing the composition, you have a lot of dust and you have a lot of waste. There is a big pressure to get out of this way of building. That all favours the modern building materials which are prefabricated and this is a trend which is seen all over the region,” concluded Kressforf.

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