November 21, 2005

Dow BioProducts to end production of low-VOC fibreboard at Manitoba plant

CALGARY, ALTA-Citing increasingly volatile feedstock and energy costs, together with poor market demand, Dow BioProducts, a division of Dow Chemical Canada, has decided to end production of Woodstalk(tm) high-performance engineered panels at its plant in Elie, Manitoba, by the end of 2005. "External market conditions, such as increasingly volatile feedstock and energy costs and lower-cost product competition, provided significant challenges for us, and thus, the business decided to cease Dow BioProducts' operations," said Wayne Karolat, Dow BioProducts vice-president of operations. "While we have been able to refine our manufacturing processes and improve product quality, the appetite of the marketplace to support high-quality, low-VOC (volatile organic compound) fibreboard products was not sufficient to ensure the sustainability of the business," he added. The decision will affect some 68 Dow BioProducts employees and 15 contractors, and Dow Canada president Ramesh Ramachandran said the company will be providing transition support for the displaced employees in accordance with Dow's "commitment to the highest environment, health and safety standards and performance."

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