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.