What Was Dow in 2016?

In 2016, the Dow Chemical Company, a multinational chemical company based in the United States, experienced significant developments that reshaped its corporate landscape. This article delves into the key events, achievements, and challenges faced by Dow in that pivotal year.

Dow's Financial Performance in 2016

In 2016, Dow Chemical reported a net income of approximately 3.3 billion, reflecting a strong financial performance. The company's revenue for the year was around 48.9 billion, marking a slight decrease from the previous year. This decline can be attributed to various factors, including the impact of low oil prices and a challenging global economic environment.

Strategic Acquisitions and Partnerships

One of the major highlights of 2016 for Dow was its acquisition of E. I. du Pont de Nemours and Company (DuPont). This merger created the world's largest chemical company, combining Dow's expertise in materials science with DuPont's strengths in agriculture and nutrition. The deal was valued at approximately $130 billion and aimed to create synergies and enhance the company's competitive position in the global market.

In addition to the DuPont acquisition, Dow also entered into several strategic partnerships in 2016. For instance, it formed a joint venture with Shell to develop a new ethane cracker in the United States. This collaboration aimed to secure a stable supply of ethane and enhance Dow's manufacturing capabilities.

Investment in Research and Development

Dow recognized the importance of innovation and investment in research and development (R&D) in 2016. The company allocated significant resources to R&D, focusing on developing new technologies and products that would drive future growth. One notable example was Dow's investment in bio-based materials, which aimed to reduce the company's environmental footprint and meet the growing demand for sustainable products.

Challenges and Controversies

Despite its successes, Dow faced several challenges and controversies in 2016. One of the major issues was the Bhopal disaster. In December 1984, a chemical leak at Dow's subsidiary Union Carbide Corporation in Bhopal, India, resulted in the death of thousands of people and caused widespread environmental damage. In 2016, Dow faced a lawsuit in India related to the disaster, highlighting the ongoing legacy of the incident.

Conclusion

In 2016, Dow Chemical Company experienced significant changes and challenges. The acquisition of DuPont, strategic partnerships, and investment in R&D positioned the company for future growth. However, the company also had to address legacy issues and environmental concerns. As Dow continues to evolve, its ability to navigate these challenges will be crucial in shaping its future success.