Dow Announces Development of a New Polymeric Flame Retardant Technology for Polystyrene Foam Building Insulation Products

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Dow grants first technology license to Great Lakes Solutions, a Chemtura business

The Dow Chemical Company

Dow Global Technologies LLC (DGTL), a subsidiary of The Dow Chemical Company (NYSE: DOW), today announced the invention and development of a new, high molecular weight brominated Polymeric Flame Retardant (Polymeric FR). The Polymeric FR is expected to be the ‘next generation industry standard’ flame retardant for use in both extruded polystyrene (XPS) and expanded polystyrene (EPS) foam insulation applications globally. The development of the new Polymeric FR is the result of Dow’s continuing search for more sustainable products and in this case for a flame retardant that can replace hexabromocyclododecane (HBCD).

Phased Commercialization Plans by licensees

Today, DGTL also announced the first license agreement with Chemtura Corporation (NYSE: CHMT). This first license agreement makes it possible for Great Lakes Solutions, a Chemtura business, to produce and sell the newly developed Polymeric FR for use in XPS and EPS foam. DGTL is currently engaged in advanced licensing discussions with several other interested companies and expects to finalize these agreements by the end of the year. DGTL expects this will enable global supply security, foster market competition and help facilitate a smooth industry conversion to the new technology as EPS and XPS manufacturers adopt Polymeric FR, thereby becoming the new global standard.

To enable formulation optimizations and market qualifications, it is expected that Polymeric FR licensees will have interim quantities available throughout 2011. This will be followed, likely in 2012, by large plant construction by the licensees, making significantly larger commercial volumes available by 2013-2015 that are in line with the current HBCD market demand. This should allow the global polystyrene foam insulation industry to make a smooth transition, as national regulations are implemented.

The development of Dow’s Polymeric FR technology comes against the backdrop of an ongoing search for more sustainable products and pending regulatory restrictions on HBCD initiated by the European Union’s Registration, Evaluation, Authorization and Restriction of Chemical (REACH) substances program and several other national regulations

Breakthrough Sustainable Chemistry

The Polymeric FR is a stable, high molecular weight, Non-PBT (Persistent, Bioaccumulative, Toxic) substance that has been subjected to an extensive and robust Environment, Health & Safety (EH&S) testing regimen and evaluation, confirming a more sustainable profile. Furthermore, it provides a fire safety solution for EPS and XPS foams to enable these thermal insulation materials to continue to meet the increasing demands of global energy efficiency regulations.

Dow’s Polymeric FR technology is the result of several years of research and development efforts, including significant investments led by The Dow Chemical Company that leverage the company’s polymer, chemistry, and process science and applications know-how and EH&S expertise. Dow has worked with potential licensees to validate the technology and enable them to start scaling up a commercially viable production process.

Further updates and statements will be shared by DGTL and DGTL licensees in the future.

About The Dow Chemical Company

Dow (NYSE: DOW) combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Company’s more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at http://www.dow.com.

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Erik van Oosten

Audra Hession
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