Dow Corning, a 73-year-old chemical brand, is about to officially withdraw from the stage. Recently, Dow DuPont Materials Science Department's high-performance silicone business unit announced that starting from February this year, its new brand Tao Xi (DOWSIL) will gradually enter the Chinese market, the original Dow Corning brand silicone products will gradually transfer to Tao Xixi brand product line. This is the latest development in Dow's completion of the ownership restructuring of Dow Corning in 2016.




As the world's largest producer of "industrial MSG" silicone products, the original Dow Corning Company is a 50:50 joint venture company owned by Dow and Corning. Headquartered in Midland, Michigan, the company has 45 manufacturing sites and warehousing facilities around the world, with more than 12,000 employees worldwide, with more than half of its sales coming from outside the United States. Dow Corning is not only a pioneer in commercial silicone products, but also a global leader in silicone products. In June 2016, Dow acquired Dow Corning's shares in Corning, and Dow Corning became a wholly-owned subsidiary of the Dow Group.




Integrating Dow Corning's business into Dow's broader architecture is based primarily on product portfolio and market space considerations. Dan Futter, vice president of global business for Dow Consumer Solutions, told the news that Dow's previous material chemistry line covered a wide range of industries including packaging, transportation, infrastructure, consumer goods, energy and durable goods. After the acquisition of Dow Corning in 2016, with the addition of a new silicone product line, organic and inorganic materials complement each other and will provide more solutions in the automotive, commercial building, packaging and other end markets. For the Asia-Pacific market, mergers and acquisitions mean broader R&D prospects and market space.




The synergy effect of this acquisition has been reflected in the earnings report. Tanford’s confrontation with the news said that from June 2016 to the present, Dow achieved its commitment to shareholder commitments to cost reductions and achieved a pre-tax profit of $400 million (EBITA).




According to Yu Li, Commercial Director of Greater China, Dow Consumer Solutions, the merger achieved its expected goals, both in terms of short-term cost savings and long-term synergy. Dow will update its product brand in stages, and it is expected to complete the conversion of all product brands by the end of 2018. China is Dow's second largest international market, with 17 manufacturing bases, 9 business centers and approximately 5,000 employees. Its Zhangjiagang organic silicon integrated production base is China's largest organic silicon production base and the largest production base of Dow in China.




Dow is a subsidiary of Dow DuPont (NYSE: DWDP). In August 2017, Dow Chemical Company and DuPont completed the reciprocal merger, and the total market value exceeded the BASF of Germany, becoming the new global leader of chemical companies.