Dow Chemical Acquires 100% Stake in the Silicones Business of Dow Corning
United
States: Dow
Chemical restructured the ownership of Dow Corning, where it gained 100%
ownership of Dow Corning's silicones business. The silicon business of Dow
Corning earned a revenue of about USD4.5 billion in 2015 and it is expected
to have an annual EBITDA of USD1 billion for Dow at full run-rate synergies.
Dow Corning would receive about USD4.8 billion in cash for its stake in the
silicones business and would retain around 40% ownership in Hemlock
Semiconductor Group, a polysilicon producer. Dow Chemical is now focused
towards the incorporation of Dow Corning into its existing operations and attaining
full growth and cost synergies.
TechSci Research depicts that
the 100% acquisition of Dow Corning’s silicones business by the Dow Chemical
Company would aid the expansion of the product portfolio of Dow Chemical along
with strengthening the company’s position in the global silicone market. Consequently,
growing demand for semiconductors, which utilizes silicone as a raw material is
expected to boost the semiconductor production globally. Expanding
semiconductor industry is projected to drive the market of vacuum pumps across
the globe.
According to a recent report published by TechSci Research, “Global
Vacuum Pumps Market By Type, By Application,
Competition Forecast and Opportunities, 2011 – 2021”, the growing demand from major end user applications such as oil &
gas, semiconductors, and other industrial and process industries is forecast to
drive sales of vacuum pumps till 2021. In the semiconductor industry, these
pumps are largely used in wafer fabrication and materials production. The
global semiconductor equipment market was valued at about USD37.5 billion in
2014.