Products, Solutions and News from Dow Polyurethanes

Top StoriesWhat’s the Future of “Green” for the Furniture & Bedding Industry?.............. page 4

Dow Hyperlast Technology Helps Insulate & Protect Deep Sea Pipelines ................. page 10

Formulators’ Job Made Easier with ECHELON™ Prepolymers.................................. page 16

RE: InventRE: InventRE: InventRE: InventRE: Invent

2008-2009 Issue

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CONTENTSFor more than 60 years Dow Polyurethanes has been working with our customers to develop new products and solutions through the application of polyurethane chemistry and technology.

Each day brings an opportunity to partner with our customers to invent new and better ways to make a positive difference on the world around us. From inventing

products that reduce our environmental footprint to building energy efficient housing for families in communities where we operate, Dow and our customers are working side-by-side to build a brighter future for the next generation.

I would like to thank the many customers who contributed to this issue of RE:Invent. The stories shared throughout the magazine would not have been possible without their help.

The stories in this issue of RE:Invent reflect Dow Polyurethanes’ continued commitment to better serving our customers. From Dow’s latest sustainable chemistry solutions – RENUVA™ Renewable Resource Technology and VERDISEAL™ verdant roof membranes – to reducing emissions with VORANOL™ VORACTIV™ polyols, Dow continues to focus on applying our expertise in polyurethane chemistry to invent new products so our customers can succeed. In addition, Dow Polyurethanes continues to make significant investments in our manufacturing facilities to improve our capability to provide quality, reliable products. We also continue to invest in our Polyurethane Systems business. From a new systems manufacturing plant in Russia to expanding the capabilities of our systems houses in Spain, China, and India, Dow is building a global systems business with one of the most extensive, innovative polyurethane systems offerings in the market today.

As a science and technology company, Dow is in the business of chemistry and innovation, but how our products create value for our customers will always drive what we do. We hope you enjoy this magazine and we look forward to working with you.

Sincerely,

Pat DawsonPresidentDow Polyurethanes

Technology. Science. Markets. Solutions.

4 What’s the Future of “Green” for the Furniture and Bedding Industry?

6 Consumers Asked for “Green”; Simmons Answered

8 Tapping Into a Growing Market: Green Roofs

9 Dow Izolan Breaks Ground on New Polyurethane Systems Facility in Russia

10 Dow Hyperlast Technology Helps Insulate Deep Sea Pipelines

11 Heightened Collaboration Leads to Adhesives Solutions for Customers

12 Dow Technology and Innovation Allow Customers to Create Next-Generation Foams

14 Polyurea Spray Elastomers Gain Respect in Germany

16 Formulators’ Job Made Easier with ECHELON™ Prepolymers

17 Dow Technology Fits Company’s Commitment to Sustainability

18 Next-Generation Products Make Better Shoes

20 Meet Dow Polyurethanes’ New R&D Director, Ganesh Kailasam, Ph.D.

22 Brazilian Mattress Manufacturer Turns to RENUVA™ Technology for Greater Sustainability

23 Dow Helps Customers Meet Fire Standards Quickly and Economically

24 Manufacturers Use Dow Technology to Meet Customer Demand

26 Helping Fulfill More Customers’ Needs as Dow Polyurethane Systems Grows

29 Water Regulations Approval for HYPERKOTE™ 500 Concrete Waterproofing and Protection System

30 Manufacturer Improves Process, Cuts Costs with Dow Technology

32 Dow Polyurethane Technology Helps Shaw Industries Increase Comfort, Longevity and Sustainability of Carpets

33 RENUVA™ Renewable Resource Technology Creates Bio-based Polyols for Adhesive and Sealant Applications

34 Polyurethane Technology Improves Artificial Turf

35 Carpet Backing System Saves Money, Spares Feet

3®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

The issue is that the industry doesn’t know,

or have a clear agreement on, what ‘green’ means.

Once the domain of a few specialty mattress manufacturers that marketed to niche bedding shops and catalog companies, green mattresses, sofas and chairs have found their way into the inventories of major manufacturers and big box retailers. As a result, bedding producers have been knocking on suppliers’ doors, asking for more materials that are considered “earth-friendly.”

Today, however, consumers are driving the demand for products that have ever-increasing levels of renewable content – believing green is good, but “more green” is even better. Not only are they looking for more green content in the foam and furniture in general, they are also expecting these products to perform as well as – and preferably better than – products made with traditional petroleum-based content.

In a recent consumer study funded by Dow, consumers in North America and Europe revealed several important insights into their current and future eco-friendly buying behaviors:

• 68%saidtheyexpectedtodomoreoverthenext3yearsto make their home more environmentally friendly.

• Whiletheyexpecttopurchasemore“green”productsin the categories of household cleaning and personal care,18-20%weremostinterestedinbuyingenvironmentally friendly furniture and mattresses.

• 77%expectedthatmoreenvironmentallyfriendlyupholstered furniture and mattresses would be availableoverthenext3to5years.

• 76%saidthattheywouldpreferentiallypurchaseamattressor sofa that contained higher levels of natural content.

“As consumers become more educated about green products and marketers begin offering products with higher-and-higher levels of renewable content, companies like Dow will be given the opportunity to demonstrate how technology can impact real environmental innovation,” said Umberto Torresan, Dow Polyurethanes global marketing manager for RENUVA™ Renewable Resource Technology. “This demand for greener and greener products will lay the foundation for significant market-based, financial incentives for

product innovations in foam and other applications that go into manufacturing furniture such as coatings and adhesives.”

The Challenge – Defining “Green” In order to better define the term “green” for our customers, the furniture and bedding industry, and consumers, Dow is working with industry leaders to create an industry-wide metric to measure the true renewable content in finished polyurethane products. Ultimately, this information will help enable consumers to make more informed choices when it comes to selecting a green mattress or piece of furniture.

“The issue is that the industry doesn’t know, or have a clear agreement on, what ‘green’ means and there are no government regulations as to what is considered a green foam,” continued Torresan. “If you buy a mattress, you don’t know what percentage of the product is actually green. Today, marketers can call their product green even if they have only one or two percent renewable content, because of the lack of definition of what constitutes a green or renewable material.”

Currently, there is no widely accepted guideline to define what level of renewable content makes a product green. The United States Department of Agriculture (USDA) requires biodiesels sold to the government to be made of up to 8 percent renewable content to be considered green, but that only applies to government purchases and has no real authority in private industry.

“Green” Is Good – “More Green” Is Better

What’stheFutureof“Green”for theFurniture&BeddingIndustry?

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“Whenyouthinkofthecustomer,youwanttoprovidenaturaloil-basedpolyols(NOPs)thatdeliverproducts with superior performance properties,” says Juan Carlos Medina, group leader, Polyurethane Chemistry. “Dow is making NOPs that enable high levels of renewable content in the final foam, and also has excellent properties and durability. It is a win-win for our customers.”

Leadership Quotes

InNovember2007,thePolyurethaneFoamAssociation(PFA)announcedthatitwouldlaunchavoluntaryfoamcertification program called CertiPUR-US in 2008. Based on Europe’sCertiPURprogram,thePFA’sprogramwillincluderecommended guidelines for flexible polyurethane foam products in the areas of environmental, health and safety performance based on analysis of foam components and emissions characteristics. A key difference in the CertiPUR-US program will be the addition of physical performance standards that will help quantify durability, consistency, and comfort.

Setting an Industry-Wide Metric for Determining a Product’s “Greenness” Withmorethan60yearsofexperienceinpolyurethaneschemistry, Dow began work developing natural oil polyols (NOPs)intheearly1990s.In2007,DowintroducedRENUVA™Technology, which is used to produce natural oil-based polyols.

In his technical paper presentation for the 2008 Center for Polyurethanes Industry Technical Conference in San Antonio, Texas, Research and Development leader for Dow Polyurethanes, Juan Carlos Medina, advocates a two-part solution: adopting methodASTMD6866fortestingrenewablecontentinend-use products, and re-emphasize the connection between final product performance properties and renewable content.

“Wearetryingtoeducatetheindustryontheimportanceof measuring the level of renewable content in end-use products and to use that information as a competitive advantage in the marketplace,” Medina added. “By enlisting the help of independent laboratories to measure the renewable content in the final foam product and making that information available to consumers, manufacturers and retailers can help create more demand for products that are even more environmentally friendly.”

Measuring the Level of “Greenness” in Foam – Method ASTM D6866 MethodASTMD6866wasdevelopedaspartoftheUSDA’s new BioPreferred program, which supports theimplementationoftheU.S.FarmSecurityandRuralInvestmentAct(FSRIA)of2002.

UndertheFSRIA,federalagenciesarerequiredtopurchasebio-based products over their petroleum-based counterparts, as long as the bio-based materials are reasonably available, reasonably priced and comparable in performance. To aid federal agencies in their selection of these products, the USDA developed and launched the BioPreferred program. This online program provides information on manufacturing and product information from makers and vendors of bio-based materials, including lab results of bio-based content and other key information to aid federal agencies in their selection of these products.

Withover$400billion–spentannuallyongoodsandservices,the federal government wanted to ensure that the products they purchase are truly green. Therefore, they evaluated two commonly used methods of measurement – Life Cycle Analyses (LCA) and bio-based Content. After selecting the bio-based Content method, anASTMSubcommitteedevelopedwhat’snowcalledASTMD6866:Standard Test Methods for Determining the bio-based Content of Natural Range Materials Using Radiocarbon and Isotope Ratio Mass Spectrometry Analysis. This method defines bio-based content as the percentage of bio-based carbon in a material or product with respect to the weight of the total organic carbon in the product.

The First Step in Bringing Clarity to What Is and Is Not “Green” Defining “green” in common terms will benefit all players in the polyurethane value chain – from foam producers to manufacturers of end products and, ultimately, the consumer.

“Using a standard measurement will help make it simpler for foam producers and manufacturers to determine what level of renewable content is possible in their product, verify the content level in the final product, and then be able to promote the ‘greenness’ of the product to their customers with confidence,” added Torresan.

Dow is proposing to the polyurethane industry – foamers, manufacturers, retailers and regulatory bodies – the use ofASTMD6866asthestandardmethodtodetermine bio-basedcontentinfinishedurethaneproducts.Furthermore,Dow is stressing the importance of requesting and providing performance properties of the finished product, along with the bio-based content, when evaluating or making “green” claims for foams manufactured with NOPs.

“Dow has experimental data on urethane foams that demonstrates for the first time that the method is capable of accurately and precisely determining bio-based content in polyurethane foams made from NOPs,” continued Medina. “Using technology to provide consumers with a choice when it comes to green products is our focus at Dow. They no longer need to sacrifice a good night’s sleep for improving the environment.”

• Tolearnhowtogetyourfoamtested,callDow’sCustomer Information Group, whose information appears on the back of the RE:Invent magazine or use the “Contact Us” form on the Dow Polyurethanes website at www.dowpolyurethanes.com.

• TolearnmoreabouttheUSDA’sBioPreferredprogram, visit www.biopreferred.gov.

• TolearnmoreaboutthePolyurethaneFoamAssociation’sCertiPUR-USprogram, visit www.certipur.us.

• TolearnmoreaboutRENUVA™RenewableResource Technology, visit www.dowrenuva.com.

“Green” Is Good – “More Green” Is Better

5®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

•RENUVA™Technologyusessoybeanoil,whichisfunctionalizedinto a urethane polyol.

•DowusessoybeanoilharvestedfromsoybeansgrownintheUnited States.

•Only0.01percentofthesoybeansharvestedintheU.S.gointocreating polyols using RENUVA Technology.

•RENUVATechnologyenablescustomerstocreateend-useproducts that have high levels of renewable content – upto30percentinsomeapplications.

•Themanufacturingofbio-basedpolyolsusingRENUVATechnologyis greenhouse gas neutral and has a significantly reduced carbon footprint when compared to the conventional polyols production process.

•TheRENUVATechnologyprocessusesupto60percent fewer fossil fuel resources than conventional methods.

•RENUVATechnologycanbeusedtocreateenvironmentally friendly products for applications such as furniture and bedding, coatings, adhesives, sealants, footwear, transportation and carpet, to name a few.

Anne Kozel first got the idea for the Simmons® Natural Care® collection when she was managing the Simmons baby and kids division. Now, director of Specialty Sleep for the Simmons Bedding Company, Kozel says, “I was hearing from a lot of female consumers buying products for their children that they wanted to see more natural ingredients in the products and lesspetroleum-basedcontent.Furtherresearchshowedthatfemale consumers wanted more natural content in their own mattresses. Considering that 80 percent of the consumers purchasing mattresses are women, I saw this as an opportunity for Simmons to fill this need.”

WhentheNaturalCarecollectionlaunchedtwoyearsago,a“natural” collection of mattresses was foreign to the industry. AlthoughitwasembracedontheU.S.WestCoastimmediately,there was some skepticism. However, during the past six months the line has taken off across the country. A key indicator of market support is that JCPenney picked up the product line, which it viewed as a perfect fit with its Simply Green campaign.

Performance First, Naturally Natural Care’s primary value proposition is centered on the key performance attributes consumers look for, known by the acronym P.H.D.: Pressure Relieving, Hypoallergenic and Durable. However, the secondary value proposition Simmons stresses is of a more environmentally friendly product, which helps people feel even better about their purchase.

Consumers Asked for “Green”, Simmons Answered

Natural Care® Collection Made with RENUVA™ Renewable Resource Technology Takes Off

Consumers Asked for “Green”; Simmons Answered

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Fast Facts about RENUVA™

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Consumers Asked for “Green”, Simmons Answered

Natural Care® Collection Made with RENUVA™ Renewable Resource Technology Takes Off

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Kozel notes that her product development team worked with KariDawson-Ekeland,NorthAmericaFlexSlabmarketing manager for Dow Polyurethanes, and her team on using natural oil-based polyols made with RENUVA™ Renewable Resource Technology in the Simmons Natural Care collection. “I felt that Kari and her team were very thorough and forthcoming with the data. It was clear that Dow was further along and understood the whole category of ‘going green’ and how that could be applied to the bedding market, more so than many other suppliers.”

Simmons Launches New Line At the start of 2008, Simmons began working with eco-lifestyle expert, Danny Seo, who helped design the new Natural Care line, which was launched in July 2008. Not only did Seo share his expertise, but his credentials gave the product line added credibility among consumers skeptical of “green washing.” He also helped educate sales associates working at the retail level who wanted to be sure that environmental claims were legitimate. In fact, Kozel goes out of her way to provide data that support the line’s environmental benefits.

Simmons used natural oil-based polyols made with RENUVA™ Technology in the base and edge support foam of the Natural Care line. In upper-end models, Simmons also used their Evenloft™ technology, where they removed the quilting in the fabric. This technology provides elastic in the fabric and a smooth top. The result – the Natural Care line gives customers the comfort that latex provides and the support of the soy-based foam.

Continuing to Push the Envelope Several times a month, Kozel receives emails from consumers asking why she can’t challenge her foam suppliers to become less reliant on petroleum and use more natural products.

“The envelope hasn’t been pushed as far as I would like to see it in the industry. Although I think Dow has done an amazing job at making sure we can use less petroleum-based foam, I’dliketomovecloserto50percent natural content in our foams. I also realize that it takes time to develop technology. Everything’s not going to happen overnight in the mattress and foam industries.

“I would definitely say that I’m proud of the fact that Simmons was ahead of the curve – moving into this space before everybody else. It’s exciting to stick to an idea, see it come to fruition a couple years later and watch people move from doubt to excitement. Dow has played an important role in enabling us to use more natural content in our mattresses and provide the comfort and support consumers demand. I’m really looking forward to seeing the new ‘green’ developments Dow brings to the table, including the evaluation of the other renewable resources besides soybeans.”

Find out more about the Simmons’ Natural Care collection at www.naturalcarebed.com.

Get information on RENUVA at www.dowrenuva.com.

It was clear that Dow was further along and understood the whole category of ‘going green’ and how

that could be applied to the bedding market, more so than many other suppliers.

™RENUVA is a trademark of The Dow Chemical Company. ®™Simmons, Evenloft and Natural Care are trademarks of Simmons Bedding Company.

“Dow’s focus when it comes to our customers

is simple: to earn their business, year-

over-year, by applying our expertise in

polyurethane chemistry to help them solve a problem or offer

a unique product to their customers,” says

Herman Motmans, global marketing director for Dow

Polyurethanes. “Whenourcustomers

are successful, we’re successful.”

Incorporating sustainable green spaces into concrete-dominated cityscapes not only adds to the aesthetic appeal, it delivers tangible environmental, social and economic benefits. Green roofs – also known as “living roofs” or “eco-roofs” – compensate for green areas lost at ground level, and support a growing effort to help reduce urban greenhouse gasses, rainwater runoff and electricity usage. Long part of urban planning in many European cities, green roofs are quickly gaining popularity in the U.S., with lawmakers offering financial incentives to developers and building owners who install them.

To aid architects and structural engineers who include green roofs in their designs, Dow Hyperlast, a division of Dow Polyurethanes Systems, has introduced a waterproofing system that provides a durable, high-performance base layer for roof gardens. Marketed under the brand name VERDISEAL™, this seamless, lightweight elastomeric membrane can be quickly and easily applied to a variety of surface shapes to accommodate complex roof designs. It resists root penetration and delivers long-lasting protection against water leakage, mineral residue leaching, garden chemicals and oil spillages. The membrane, which features natural oil-based polyol in its wear coat, eliminates the need for additional protective layers and retains system integrity in a broad spectrum of weather conditions.

“The performance and economic advantages of the VERDISEAL WaterproofingSystemaretheresultofourmorethan30years’experience in the development of innovative polyurethane materials,” saidPaulFitzgerald,globalbrandmanagerforDowHyperlast.

“Weunderstandthatarchitects and specifiers look for flexibility in installation and use, durability, extensive design options and ease of maintenance – and we are able to offer these qualities in a product backed by the depth of our research and expertise, and dedicated customer support.”

TheVERDISEALWaterproofingSystemtypicallyrequiresnoprotection board or root barrier, and accepts various types of growing medium, insulation, pavers, stones and plants, giving specifiers a varied and economical choice with their building program. The system is considered to be self-terminating and is suitable to accept traffic in less than two hours. It can beappliedintemperaturesaslowas5°C(41°F),causinglittle or no disruption to other ongoing building works.

VERDISEAL Systems have been successfully applied in a number of prestigious green roof projects throughout the world, including communal roof gardens in cities on the U.S. East Coast, as well as a green roof for a mountain-side parking lot in Assisi, Italy.

“As a part of Dow Polyurethane Systems’ worldwide network of systems houses, Dow Hyperlast offers customers products that help them achieve their vision and offer their customers technology to serve new and differentiated market segments,”continuedFitzgerald.“VERDISEALSystemsenable Dow to contribute to improving the quality of life for millions of city dwellers, while delivering a differentiated solution that helps create value for our customers.”

Tapping into a Growing Market: Green Roofs

8 ®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

By expanding our manufacturing capabilities in the region, we can offer our Russian customers the fastest, most technically advanced solutions to meet their growing needs.

“As one of the world’s largest emerging economies, Russia is undergoing tremendous growth. To satisfy consumers’ appetites for new cars, energy efficient homes and better appliances, the polyurethanes industry must keep up with ever-increasing demand,” says Aldo de Santi, general manager, Dow Izolan. “By expanding our manufacturing capabilities in the region, we can offer our Russian customers the fastest, most technically advanced solutions to meet their growing needs.”

Fromrigidfoamsystemsusedinconstructionpanelsandinsulation to flexible foam systems used for arm rests, head rests and seating in automotive applications, the facility will produce a broad range of polyurethane systems.

“Combining the strengths of both Dow Polyurethane Systems and Izolan has enabled us to expand our presence in Russia and continue to develop and commercialize products and technologies to meet specific requirements of the local market,” says Juan Antonio Merino, general manager, Dow Polyurethane Systems. “This new Dow Izolan facility is an example of Dow’s strategy to grow its downstream performance businesses to achieve consistent earnings growth and financial fitness. It also represents Dow’s and Izolan’s continued commitment to the polyurethanes industry and to customers in Russia. Dow Izolan is a strategic partnership that solidifies our position as a preferred supplier in Russia and creates long-term opportunities for Dow.”

EstablishedinAugust2006,DowIzolanisbasedinVladimir, 170kilometers(km)northeastofMoscow,andhasmorethan 100 employees.

Dow Izolan Breaks Ground on New PolyurethaneSystemsFacilityinRussia

9®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

Dow Izolan, the joint venture company between The Dow Chemical Company (Dow) and Izolan, broke ground September 9, 2008 on a new, state-of-the-art polyurethane systems manufacturing facility in Vladimir, Russia. The new plant will help Dow Izolan to enhance its offering to Russian customers serving the fast-growing automotive, consumer, footwear, furniture, appliance and construction markets. The facility, which is scheduled for start-up in mid-2009, represents the company’s commitment to the polyurethanes industry in Russia and to offering customers a reliable supply of tailored, value-added solutions.

Dow Hyperlast Technology Helps Insulate Deep Sea Pipelines

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Dedicated to High Performance –

Thomas Serbe (left) started playing table

tennis when he was seven. That’s 36 years of

learning, practice and triumph. He continues

because he loves the game and he’s committed

to improvement. Thomas called upon that

dedication for the 14th World Veterans

Table Tennis Championship in Rio de

Janeiro, Brazil, where he finished 10th in single’s

competition and 19th in double’s competition.

As Senior Production Leader for Dow’s

Propylene Oxide/Propylene Glycol business,

Thomas uses that same sort of dedication to

help ensure that products made at the Stade,

Germany site are the best quality for our valued

customers. That’s the spirit of the Human

Element™.

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Dow Hyperlast, a division of Dow Polyurethane Systems, is developing innovations that help the oil and natural gas industry reach oil in deep sea beds, making it easier to pump their products.

One of the industry’s preferred choices for insulation and protection systems, HYPERLAST™ Syntactic Polyurethane Systemscurrentlyareusedtocoatinexcessof700kilometers(400miles)ofpipeline,andHYPERLASTelastomersystemsareusedonmorethan35,000fieldjointsglobally.

HYPERLAST polyurethanes protect and insulate oil and natural gas flow lines, manifolds, risers, field joints, jumpers, spool pieces and other related underwater components. This family of polyurethanes works well for underwater pipeline insulation because of their excellent flexibility, range of hardness, low processing temperatures and high thermal insulation properties.

Depending on the grade selected, HYPERLAST Syntactic DW-512™haswaterdepthcapabilitiesofupto 3,000meters(10,000feet).Insimulatedtests,thepipe coatings maintained consistent insulation properties and thicknesswithinternalpipetemperaturesupto115°C(239°F).

Another product in the HYPERLAST Syntactic family, HYPERLASTLD-512E™,offersenhancedinsulationandprotection for flow lines and similar marine applications. “This product is a lower density version of HYPERLAST SyntacticDW-512,allowingthepipecoatertoapplylessmaterial to achieve the same degree of insulation,” says PaulFitzgerald,globalbrandmanagerforDowHyperlast.

To support Dow’s continued drive to create sustainable products,HYPERLASTSyntacticLD-512Eusesanenvironmentally nonhazardous catalyst, which has the potential to significantly cut waste disposal costs when compared to other systems.

FormoredetailsonDowHyperlastpolyurethanecoatingsystems for marine and offshore applications, contact help@dowhyperlast.com or visit www.dowhyperlast.com.

Did You Know??Dow has more than 60 years of experience serving

the polyurethanes industry.

™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

A steel panel manufacturer in Austria found answers to its distinct adhesives needs by looking to its long-time supplier of polyurethane (PU) foam.

Dow Polyurethane Systems has been supplying PU systems to BRUCHA Ges.mbH for more than seven years. The manufacturer’s insulated steel panels are made by either inserting Dow’s PU rigid foam or mineral hardwoolbetweentwosteelfacings.Whenmineralhard wool is used, an adhesive also is needed to help unifythethree-partproduct.Withtheinstallationofa mineral wool line, Dow was asked for a technical solution to fulfill the required process conditions and the final mechanical and fire performance properties.

Different Solutions for Different Customers After collaborating with BRUCHA about its specific needs, Dow suggested a VORAMER™ industrial adhesive that would be best for use with BRUCHA’s existing low-pressure spraying machines using a two-component adhesives system.

“Thequestionmustalwaysbe:Whatwillworkbestfor this particularcustomer?”saysJörgArntzen,seniortechnical sales representative, Dow Polyurethane Systems. “That is why our customer-intimate business model is so important.Wemustunderstandourcustomers,theirneedsand their desires to provide the best solution for them.”

A Line of Adhesives to Stick With VORAMER™ adhesive penetrates substrates better than the product that had been used, so BRUCHA has found that the mineral wool and the facings adhere more strongly. VORAMER adhesive also allows for easier processing, making production more flexible and efficient. Also, the importance of service provided by Dow Polyurethane Systems cannot be underestimated.

“In a short time period, Dow has brought the technical solution we were looking for to run our mineral wool production,” says Karl Zischkin, technical director and production leaderofBRUCHA.“Withtheproductandthetechnical support of Dow, we could improve the efficiency of our production, which allows us today to offer a cost-competitive and high quality product to the panels market.”

Fast Facts about BRUCHA•Foundedin1948,BRUCHAisawholly

Austrian family-run company.

•BRUCHAproducespanelsfortherefrigeration and frozen storage industries, for industrial and agricultural building construction and for cold storage containers and doors.

•Ithasmorethan500employeesandis headquartered in Michelhausen, which is near Vienna, Austria.

Learn more about BRUCHA at www.brucha.com.

The question must always be: What will work best

for this particular customer?

Heightened Collaboration Leads to Adhesives Solutions for Customers

11

“Ourbusinessisapeoplebusiness.Wecontinuetobuildapeople-centricculturethatvaluestalent,dedicationandindividualperspective.Whenweinvestinjointventuresandacquisitions,wemainlyinvest in the expertise and passion of the employees to offer our customers more value-creating, innovative products,”says Juan Antonio Merino, general manager, Dow Polyurethane Systems.

Leadership Quotes

™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow

This year, for the first time, Americans will spend more money on sleep aids than they will on actual beds and mattresses. A record 65millionprescriptionsforsleepingpillswerewrittenbyU.S.physiciansin2007,atanestimatedvalueof$27billion(Source:The U.S. Sleep Market, MarketData Enterprises). Consumers are asking for more comfortable, supportive and “green” mattresses – mattresses made from renewable content and with minimal Volatile Organic Compounds (VOCs). Dow Polyurethanes is providing foam and mattress manufacturers with innovative products and technologies to help them meet these changing consumer demands.

Consumer Demand: More Comfort Dow Solution: Viscoelastic Polyols Beds made with viscoelastic (VE) foams made up one third of beds produced last year. This shift towards incorporating VE foam in mattresses stems from consumers preferring the comfort and quietness that VE foam offers.

“Whenpeoplearebuyingamattress,theyreallywanttoknowtwothings:Howdoesitfeelorisitcomfortable?Howlongwillitlast?”saysDaleHunter,CustomerTechnicalServiceCenterleader for Dow Polyurethanes. “Dow’s VE polyols create high-quality VE foams that meet consumer needs for comfort and durability. It’s part of Dow’s commitment to ongoing technology development focused on meeting customers’ needs.”

Kari Dawson-Ekeland, Dow Polyurethanes’ marketing manager for North America, notes that: “People often pick out a bed after only touching it with their hands or maybe sitting on it, so their initial reaction to the mattress ‘hand feel’ is critical to their purchasing decision.”

VE foam provides comfort in all seasons and in diverse climates because it has a very broad glass transition temperature range (Tg). This translates to greater consumer comfort.

Dow also offers cell openers that can enhance the breathability or airflow properties of VE foam, which helps it remain soft in cool temperatures and cool to the touch in warm temperatures.

Consumer Demand: Better Support Dow Solution: Copolymer Polyols In most regions of the world, foamers are also challenged today with producing foams that can provide support and comfort to a population that is, on average, heavier than two decades ago. This increase in the average weight requires foamers to produce higher load-bearing foams.

“Dow’s copolymer polyols (CPP) enhance load-bearing capabilities or firmness, which enables our customers to produce foams with improvedsupport,”saysRaquelFortes,DowPolyurethanesglobalapplication development leader. “In addition, Dow is constantly evaluating how we can improve our process technology in order to translate market needs into practical solutions for consumers.”

To increase its ability to provide high-quality products like CPP to its customers, Dow is expanding its polyol plant in Terneuzen,theNetherlands.Whencomplete,theexpansionat the Terneuzen plant will expand Dow’s overall polyol product capacity by 180 kilotons per annum (KTA).

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Dow Technology and Innovation Allow Customers to Create Next-GenerationFoams

“The Terneuzen site is one of the largest polyols production facilities in the world,” says Doug Warner,businessdirectorforDowPolyols.“Thissignificant investment in capacity, coupled with our ongoing investment in developing innovative market-focused technologies, will allow us to continue to serve our customers with the specialty polyols and polyurethane systems products they need to differentiate themselves in the market.”

Consumer Demand: Natural Content Dow Solution: RENUVA™ Technology Withglobalwarmingandotherenvironmentalissues gaining greater influence in consumers’ purchasing preferences, manufacturers have begun demanding “green” materials. Dow has answered this demand with natural oil-based polyols (NOP).

NOPs from Dow are enabled by RENUVA™ Renewable Resource Technology, a proprietary greenhouse gas-neutral process that uses upto60percentfewerfossilfuelresourcesthan the manufacturing of conventional polyols, thus reducing the impact on the environment while delivering high levels of renewable content in the final foam.

NOPs created through RENUVA Technology can be used to make polyurethane foams tailored to meet the needs of many applications in the bedding and furniture marketplace, including: Conventional FlexiblePolyurethaneFoam(FPF),Viscoelastic(VE)foam, molded foam, and High Resilience (HR) foam.

Consumer Demand: Lower Odor Dow Solution: VORANOL™ VORACTIV™ Polyols A common complaint among consumers about new furniture and bedding products is that the foamsometimesemitsstrongodors.Withtime,these odors tend to fade, but some consumers may be bothered by the smell. This can lead to costly returns and damage to a brand’s reputation.

VORANOL™ VORACTIV™ polyols from Dow are unique because the amine catalyst is built into the polyol. This reduces odors often associated with VOCs, and improves air quality.

FoammadewithVORANOLVORACTIVpolyolsis cleaner and has a more consistent density throughouttheblock.Withimprovedfoamquality and more regular cell structures, foams made with VORANOL VORACTIV not only solve the problem of foam odor, but also deliver the performance attributes required by consumers.

Fromaddedcomfortandsupportandlessodortofoamsmadefrommorerenewablecontent, Dow is tuned in to what consumers want and is helping manufacturers respond with winning solutions that let everyone sleep easy at night.

®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

Leadership Quotes

®™The DOW Diamond Logo and Human Element and design are trademarks of The Dow Chemical Company © 2008

™RENUVA is a trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

*The technology represented in this advertisement may not yet be registered and related products may not yet be available in all geographies where Dow is represented. The claims made may not have been approved for use in all

countries.

Finding equilibrium between man and

the elements . This is the chemistry of life. And when we

see it for all its complexity, and all its humanity, we discover the

element of harmony. The Human Element. When added to the

equation, even industry’s need for sustainable products has

solutions that are at peace with the planet. At The Dow Chemical

Company, our RENUVA™ Renewable Resource Technology offers

manufacturers the potential to reduce environmental impacts.

The creation of bio-based polyols* using RENUVA Technology is

greenhouse gas neutral and has a significantly reduced carbon

footprint when compared to conventional polyol production

processes, and RENUVA Technology uses up to 60%

fewer fossil fuel resources than the conventional methods. Less

negative impact. More positive potential. That’s a good balance.

www.dow.com/hu www.dowrenuva.com

“Dow Polyurethanes’ leadership in the development of RENUVA™ Renewable Resource Technology is yet another example of how our Performance businesses continue to create value for customers as well as long-term growthopportunitiesfortheCompany,”saysDougWarner, global business director for Dow Polyols.

I don’t know of any case where the product has not

been applied successfully.

The benefits of polyurea spray elastomer systems are being introduced to more people in Europe, now that two customers of The Dow Chemical Company (Dow) have added these systems to their offerings.

Familiar Relationship Benefits Both ThyssenKrupp Xervon, a subsidiary of the ThyssenKrupp Group, a worldwide maintenance application company, has worked with Dow many times as a contracted applicator. In2005,anagreementwasmadeforThyssenKruppXervontouseVORASTAR™polyurea products, produced at the Dow Ahlen site, in a spray system that acts as a protective layer for concrete catch basins on Dow properties throughout Germany.

In Europe, hand-applied epoxies are commonly used for these kind of protective layers, so the use of polyurea spray elastomers in Germany is uncommon. But with a long history in PU chemistry and a continued presence in various geographies and markets, Dow can identify emerging needs and standards. That is why Dow recognizes the potential of polyurea spray elastomers in Europe.

Its benefits are many. The system is very fast; it is tack-free in 10 seconds. It is easy to apply, does not react to moisture, is fast curing and has a low viscosity.

The arrangement between ThyssenKrupp Xervon and Dow benefited both businesses: ThyssenKrupp Xervon gained expertise in handling such a system and Dow was helped by having a large applicator learn more about the line of VORASTAR polyurea spray elastomers. “Object by object, they got more experience, with the technology,” says Christian Bruchertseifer of Dow Polyurethane Systems’ Global Application Technology Development Elastomers Group. “Dow had hopes that a strong business relationship could be forged, which may lead to more industrial maintenance markets.”

The goal of both ThyssenKrupp Xervon and Dow was to introduce polyurea spray elastomerstoprojectsthroughoutGermany.Forthat,governmentapproval,calledWHG19certification,isneeded.“CertificationinGermanyisamustforworkonpublicobjects,”Bruchertseifersays.“Wehavemoreorlessadutytooffercertifiedproducts.”

Complementary Business Relationships In2003,afewyearsbeforetheThyssenKruppXervonagreementwasreached,asmall maintenance applicator called GepoTech approached Dow. It had expertise with polyurea as a spray elastomer and was looking for a new supplier. GepoTech offered to purchase VORASTAR™ polyurea products from Dow, use it for niche projects like sewage manholes, and sell it to other applicators under its own brand name.

Polyurea Spray Elastomers Gain Respect in Germany

As part of a maintenance project,

workers from ThyssenKrupp Xervon

apply VORASTAR™ polyurea spray

elastomer to seal concrete liners

throughout the Dow Stade site.

Pictured is the Dow Stade site, where VORASTAR™

polyurea spray elastomers were used to seal the concrete

liner of the sewage system. Dow supplied the product

and a company called ThyssenKrupp Xervon applied it.

Hand-applied epoxies are still one of the

coatings of choice in Europe. But when

more people learn about these polyurea

systems, the market will open to the

possibilities of spray elastomers for large

public projects such as bridges and tunnels.

14

Dow’s technical expertise in PU systems allows it to help customers practice PU chemistry as carefully and effectively as possible. GepoTech usedVORASTARpolyureasprayelastomersandworkedwithexternalinstitutes,suchastheMFPA,aresearchandtestlaboratoryforthebuilding industry, in Leipzig, Germany, to try out the product. Because GepoTech had more experience with polyurea than ThyssenKrupp XervonorDow,itappliedforWHG19certification,whichwasgrantedinlate2007.“Itwasaperfectfit,”Bruchertseifersays.

15™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

Building a Better Backbone

A strong backbone can reveal a lot about a person – or a polyol.

The backbone of the VORANOL™ VORACTIV™ VV 7505 polyol,

the first VORACTIV polyol for high-resilience foam in furniture

and bedding, has a built-in amine catalyst. This

streamlines processing, improves consistency of foam

blocks and reduces odors and VOC emissions in foam

products. Find out how the better backbone in VORACTIV

polyols can help differentiate your products at www.voractiv.com.

®™

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Now GepoTech is purchasing polyurea from Dow in increasingly large volumes, ThyssenKrupp Xervon is purchasing the product from GepoTech for projects that require WHG19certification,andbothapplicatorsare looking for projects on which to use the product. Dow Polyurethane Systems enables customer success by creating tailored solutions that meet customer needs and enable customer growth. “In the beginning of 2008, ThyssenKrupp Xervon worked on their first object outside of Dow. That was the ultimate goal,” Bruchertseifer says.

An Opening in the European Coatings Market GepoTech is controlling which applicators may use Dow’s VORASTAR™ polyurea products. “They are establishing quality standards for applicators based on the proper use of machines, application practices and so forth,” Bruchertseifer says. “They want to help ensure a certain level of quality in the final application. This benefits the applicators because the product and the process obtain a reputation for high quality.”

Recently, GepoTech was acquired by the Schomburg Group, a large civil engineering company. “I think it will accelerate the whole process because Schomburg is an international company,” Bruchertseifer says. “I only see a positive effect here. Our role doesn’t change because we are the supplier.”

As polyurea spray elastomer systems are used more frequently in Germany, the market opportunities for these systems in Europe are likely to grow. “I don’t know of any case where the product has not been applied successfully,” Bruchertseifer says.

Did You Know??Dow was named 2007 Chemical Company of the Year by Chemical & Engineering News.

Formulators’ Job Made Easier with ECHELON™ PrepolymersUsingits60-plusyearsofexpertise,DowPolyurethaneshas developed a new line of prepolymers designed to create efficiency and innovation for adhesives and sealants formulators.

Launched in April 2008, ECHELON™ polyurethane prepolymers allow formulators to eliminate complex processing steps, thereby minimizing potential manufacturing liabilities and decreasing equipment requirements – all while increasing product offerings.

Dow’s Commitment to the Industry The addition of this line of prepolymers illustrates Dow’s commitment to deliver new solutions in the adhesives and sealants industry within construction and industrial markets. Dow is committed to providing high-performing adhesives and sealants that are key to these and other markets for years to come.

Removing one of the most difficult steps of processing takes away the worry that some formulators may experience, but this product line actually goes further – helping formulators cut costs and differentiate their products in the marketplace at the same time. ECHELON prepolymers:

•Meetawiderangeofapplicationrequirementssuchas varying viscosity demands, flexibility, water resistance and storage stability

•Eliminateprocessingstepsanddecreaseequipmentrequirements

•Reducedevelopmentcostsandproductdevelopmentcycletimes

•Reducemanufacturingandhandlingconcernsassociated with eliminating the prepolymer production process and use of pure isocyanates

•Provideblendingcapabilitytoincreasetheformulationlatitudeor modify other isocyanate-terminated prepolymers

An ECHELON™ Prepolymer for Every Need WithawidevarietyofECHELON™prepolymersavailable, Dow is helping meet the specific needs of formulators. ECHELON prepolymers are available for rigid or flexible systems, for use alone or with resins in two-component systems, when long pot life is needed, and more. The adaptability of this product line is impressive.

ECHELON prepolymer products also can be blended, so they can be tailored for each individual user’s condition. This gives formulators the opportunity to collaborate with Dow, using Dow products and technologies to help answer the most demanding application needs, such as hydrolysis and chemical resistance, mechanical properties, controlled reactivity and a variety of viscosities.

The ECHELON brand is just the beginning. Dow continues to develop new polyurethane technologies and prepolymers offerings for this line of products.

Visit www.dowpolyurethanes.com to find out which ECHELON product will meet your needs or call Dow’s Customer Information Group.

FormulatorswillhaveachancetounderstandhowECHELON™ polyurethane prepolymers can benefit them when they visit the SpecialChem web site dedicated to adhesive and sealantrawmaterials:www.specialchem4adhesives.com.

SpecialChem is the online innovation and solutions accelerator focusing on specialty chemicals, engineering plastics, and adhesives and sealants. Through a series of online services, it helps the industry develop new and innovative products much faster with innovative materials.

Spotlight on ECHELON™ Prepolymers SpecialChem is a gateway to several industry-focused platforms,includingAdhesives&Sealants,whichiswhere ECHELON™ prepolymers will be featured.

In May 2008, SpecialChem posted a technical article about ECHELON prepolymers to raise awareness of the new offering and gather feedback from customers on their prepolymer needs. In September a more detailed look at the product line became available on the SpecialChem web site. This technical center is designed to help formulators select the best ECHELON products for various applications.

To view the ECHELON prepolymer features on the SpecialChem web site, go to www.specialchem4adhesives.com/tc/polyurethane-prepolymer and log in as a member to interact with Dow.

SpecialChemtoFeatureECHELON™ Prepolymers

16 ™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

DowTechnologyFitsCompany’sCommitment to Sustainability

FAMaringá,whichmanufacturestextilesandfoambeddinginParana, Brazil, takes its commitment to the community, and to the world at large, seriously. That is one reason the company incorporates RENUVA™ Renewable Resource Technology from Dow in one of its foam mattress product lines.

“The importance of seeking a balance within the production-and-demand cycle led our company to look for renewable feedstocks,” saysLuizFernandoFerraz,executivedirectorofFAMaringá. “Weareawareofthefiniteavailabilityrelatedtotheuseoffuelsand fossil fuel by-products and, therefore, we must be ahead in our efforts to pursue renewable raw material applications.”

RENUVA Technology uses natural oil-based polyols (NOPs) made from soybeans to create products with high levels of renewable content. This technology is greenhouse gasneutralandusesupto60percentfewerfossilfuelresources than conventional polyol technology.

FAMaringáisconcernedwithnotonlythevitalityoftheenvironment, but also the vitality of the local community. “The company’s integration with society can go far beyond the simple need to provide products that meet quality standards,”Ferrazsays.“Beingsuccessfulisworthlesswhenyou are surrounded by an environment of deprivation.”

Withthatphilosophyinmind,FAMaringádonatedmattressesto Ambassadors of the Environment, a camp where youths learn abouttheimpacthumanscanhaveonnature.FAMaringá’sother most notable social responsibility initiatives, include:

• Aprogramtohelpeducateunderprivilegedchildrenthroughdaily tutoring offered on top of their regular schooling

• Thedonationoffabricforvolunteerstosewapproximately1,200 articles of children’s clothing for Christmas distribution

• Thedonationofapproximately700quiltedbedspreads each winter to the underprivileged

TolearnmoreaboutFAMaringáandtheirefforttoimprove society, visit www.famaringa.com.br.

17™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

Pleasant Dreams

Learning about sustainable living takes time, dedication – and a good night’s

sleep. Ambassadors of the Environment is a partnership between Dow and

Jean-Michel Cousteau’s Ocean Futures Society (OFS). Through the project,

youths learn about nature and sustainability during a week at a camp near Dow’s

Guarujá site in Brazil. While there, the youths sleep on mattresses donated by

FA Maringá, a fabricated textile company located in Parana, Brazil.

The mattresses feature natural oil-based polyols derived from Dow’s

RENUVATM Renewable Resource Technology, a greenhouse gas-neutral process

that uses up to 60 percent fewer fossil fuel resources than the manufacturing of

conventional polyols. This reduces the impact on the environment, while delivering

high levels of renewable content in the final foam.

It’s a perfect mattress for anyone who wants a good night’s sleep – and to dream

of a sustainable future. To learn more about RENUVA Renewable Resource

Technology, visit www.dowrenuva.com.

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Dow’s next generation of VORALAST™ Polyester Polyurethane Systems offer customers a material that is more durable, flexible and comfortable than rubber or thermoplastics. This means that shoe makers are able to produce better products for their customers.

“Wearecreatingsolutionsthathelpourcustomerstosucceed,” says Giuseppe Vairo, development specialist for Dow’s Application Technology Development organization.“Whentheywin,wewin.”

One of the advantages polyurethanes offer over other materials is versatility. Different shoe styles requiredifferenttypesofsoles.Workandsafetybootsneed tough, strong soles that have good grip.

We are creating solutions that help our customers to succeed.

In2006,theworldproducedapproximately18billionpairsofshoes, which is almost enough for three pairs per person. So far, the market has been dominated by rubber and thermoplastic materials like polyvinyl chloride (PVC). However, polyurethanes present a high-quality, versatile alternative to traditional materials.

“Polyurethanes could challenge traditional material,” says Andrea Benvenuti, senior development specialist

for the Application Technology Development organization of The Dow Chemical Company

(Dow).“Wehelpourcustomers make better shoes.”

18 ™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

Other shoes, such as athletic shoes or sandals, require lighter materials with higher flexibility. VORALAST Polyurethane Systems provide solutions to a wide range of needs for Dow customers. VORALAST Systems can reach molded densitieslowerthan320kg/m3.

“Polyurethanes are favored both for comfort and performance,” saysRenatoPaludetto,GlobalFootwearApplicationTechnologyDevelopment leader for Dow Polyurethane Systems.

Shoes made with VORALAST Systems are also stronger and more durable than other materials. All systems have a load bearingofatleast30to35N/cm2.Thisavoidsproblemsofcompression/loaddeflectionsduringwear.“Solesmadewith this material will last longer,” Benvenuti says.

Besides having impressive properties, VORALAST™ Systems have another significant advantage over traditional rubbers and thermoplastics. Consumers buying shoes base their decision primarily on look and comfort. VORALAST Systems give shoe designers an advantage because the material has a goodproductivityandexcellentflow.“Withthismaterial,youcan get a perfect reproduction of the design,” Vairo says.

In addition to having a short curing time, VORALAST™ Polyurethane Systems also have a low freezing point, as well as a gentler melting point. Some prepolymers were able to stay liquid at temperatures as low as zero degrees Celsius. This means that VORALAST Systems are easier and cheaper to store and process. The low freezing point minimizes the risk of clogged mixing heads or machine filters. “Other materials may be cheaper, but our equipment is much, much less expensive,” Paludetto says.

Dow has also developed VORALAST™ RS, a new family of renewable polyurethanes systems. VORALAST RS incorporates natural oil-based polyols (NOPs), which utilize less energy and emit fewer greenhouse gases during production. At the same time, the addition of NOPs maintains the high performance standards customers expect from Dow.

VORALAST™ RS maintains molded densities lower than 320Kg/m3(20lbs/ft3),whichmakesitsuitableforsandals, slippers and sport shoe midsoles.

The new generation of VORALAST systems also keeps their flex fatiguepropertiesattemperaturesaslowas-20°C(-4°F).Theexcellent flow of the material allows for easy design copy, even when using complex specialized molds. VORALAST is highly productive,capableofproducingupto6,000pairspershiftwithademolding time as low as 90 seconds when using the appropriate system. VORALAST is also chemical, oil and water resistant.

“The product performance is excellent for making shoes,” Benvenuti says.

By developing products in the VORALAST series, Dow has shown the ability to use its world-class technical abilities todevelopinnovativesolutionsforitscustomers.“Wehelpour customers make better products,” Benvenuti says.

Next-Generation Products

Make Better Shoes

19

“Workplacesafetyisnon-negotiableatDow,andmaintaininghighstandardsincorporate governance, corporate responsibility and product stewardship top our priority list,” says Steven English, business director for Dow Isocyanates, a business unit within Dow Polyurethanes.

Leadership Quotes

In April 2008, Ganesh Kailasam joined Dow from GeneralElectricasthenewdirectorofResearch&Development for Dow Polyurethanes. Recently, we sat down with him to get his perspective on the polyurethanes industry,DowandhowR&Dcanhelpourcustomers.The following are excerpts from that interview.

Moreover, as I began to know the people of Dow, my decision to join the Company was influenced greatly by the exceptional technical talent within its walls. In addition, I could see firsthand the tremendous investment Dow makes in research and development. I could really resonate with Dow’s drive to innovation through a balance of organic and inorganic growth. My family and I have been very happy with my decision.

Interviewer: Combining your scientific expertise with your fresh perspective on the industry, what do you see as the most exciting emerging polyurethane technology?

Ganesh: I am excited by the prospect of continued development of our conventional routes and chemistry to create new features. Wearepushingaheadwithseveralnewinventionsbothontheprocess and product side, which are expected to bring new value creation opportunities to customers in the next few years.

I am also very excited about natural oil polyols. Since coming on board at Dow I’ve been impressed by the features we can get out of these natural oil polyols created from Dow’s new RENUVA™ Renewable Resource Technology. Their properties are different and distinct – truly change-the-game technology and a backbone for entirely new inventions. The opportunities for growth in this area are tremendous because we’ve only scratched the surface on new polyurethane applicationsthatcanbenefitfromthistechnology.WhiletheNOPproducts we offer today allow customers to create products with very high levels of renewable content – something that consumers continue to demand – our development work on the technology continues.Fivetotenyearsfromnow,Dowexpectstohaveanextensive offering of new products based on the inventions we make in this area. I couldn’t be more excited about these opportunities.

20

Meet Dow Polyurethanes’ New R&D Director Ganesh Kailasam, Ph.D.

Interviewer: It’s been a little over six months since you joined Dow from General Electric. What attracted you to the polyurethanes industry and Dow in particular?

Ganesh: As for Dow, I had been reading a great deal about the Company in the press. I was immediately intrigued by Andrew Liveris’ message around building the “Dow of Tomorrow” and the Company’s transition from being known as a commodity company to a growth company.

As an observer from the “outside,” I began seeing real change happening at Dow – increased focus on the importance of technology and innovation as the key to enabling customers to meet future market needs, as well as an increased emphasis on building a presence in developing regions around the globe. I felt that I could make an impact in the transformation of the Company. Moreover, I felt Dow could provide me with an opportunity to learn new skills.

As for the Dow Polyurethanes business, what attracted me most was the fact that it was going through its own transformation. It was growing – investing in new technologies, like RENUVA™ and VORACTIV™, and focusing on developing close relationships with customers to innovate solutions for what is needed in the future. I saw the breadth and depth of the chemistry, and the great potential to innovate and drive differentiation in the marketplace. I wanted to be part of this transformation. I felt the draw of a unique experience and the big opportunity to bring a fresh perspective and make a meaningful impact.

Interviewer: What sets Dow R&D apart?

Ganesh: Three fundamental things: •Thesignificantinvestmentinresearchanddevelopment the Company makes world-wide and the depth of our commitment to the research process.

•Aworld-classinfrastructure…absolutelysuperb.

•Extremelyknowledgeable,experienced,committedpeople. Dow researchers not only strive to find the fundamentals behind the science, but they also use this knowledge to provide unique insights in order to help our customers solve their problems. They have a passion for chemistry and a passion for helping customers succeed through applying technology!

Interviewer: How is Dow’s approach with customers different than what you have previously experienced?

Ganesh: The true difference lies in understanding what the customer wants and combining that with technical knowledge. This requires us to be close to our customers and to make their challenges and needs our own. In our minds we must make their customers our customers so that we can help solve the problems thatmeanthemosttothem(ourdirectcustomer).Wehavetoalways think about how we can help our customers grow their businesses and help them provide value solutions to their customers.

OurTechnicalServiceandDevelopment(TS&D)organizationinpartnershipwithourCommercialMarketing&Salesorganizationallow us to achieve this important perspective. Through thispartnership–salesandtechnical/R&D–customersareprovided with a team that can combine the full power of Dow toward solving their problem or growing their business.

Interviewer: What is your vision for continuing to improve alignment of R&D programs to meet the needs of our customers?

Ganesh: Regardless of the science, innovation is about providing new solutions, opportunities and value for customers and to the market place. Of course, as a leader, you first look for adjacencies. However, in order to make a real difference and grow, you have to proactively look for unmet needs and work on breakthrough technologies.

One of the things I’ve been most impressed with at Dow is the collaborationthatgoesonbetweentheMarketingandR&Dfunctions to intensify our customer and market focus. Under the leadership of Herman Motmans, global marketing director for Dow Polyurethanes,andAlbertoFangareggi,seniorR&DdirectorforDow Polyurethane Systems, we have established Industry Teams. Focusedoneachofthemajorindustriesourbusinessserves,theseteams have instituted a more disciplined approach to evaluating the best opportunities in the market place and then accelerating the implementation at the customer level. This is all part of Dow’s evolution to become increasingly customer- and market-focused.

Knowing what your customers need to be successful is the “entry ticket.” Knowing them well enough to develop new solutions that they don’t yet know they need is the “new reality.” Dow is doing this through our Area Implementation Teams (AITs), which have a deep knowledge of local trends and market needs. In coordination with the Industry Teams, they are able to identify opportunities to develop new products and technologies that offer real value to our customers at the local level. There is no substitute to being creative and innovative, and developing unique technologies. Bringing creative solutions and options to customers is a critical path for us.

Interviewer: How do we develop and commercialize new technologies more quickly?

Ganesh: The first step is to work with the most creative and passionate people. Dow’s talent is one of the things that drew me to the Company. Once you have the best people, you must help them focus and create passion for finding answers. Scientists need to believe that they are going to change the world with theirinventions.Withthisdrivecomesthediscipline,purposeandownershipthatareimperativetoefficiency.Wemustalwaysfindwaystogofaster.Wemusthaveconsistencyofpurpose.

Interviewer: Tell me about Dow’s new “Centers of Excellence”?

Ganesh: Developed around the specific markets we serve, Dow Polyurethanes’ new Centers of Excellence will allow us to more efficiently leverage the technologies that have been developed inaparticularregiontoourglobalcustomerbase.Forexample,our Polyurethane Systems Houses are very effective in developing technologies focused on meeting the needs of the local customer. Through the use of Centers of Excellence – enabled by Dow’s global infrastructure – this expertise can be leveraged to help customers throughout the world. Currently, Centers of Excellence have been established in several markets and applications: Elastomers (Birch Vale, United Kingdom), Adhesives and Sealants (Freeport,Texas,U.S.),Appliance,Construction,AutomotiveandFootwear(Correggio,Italy),Furniture,BeddingandAutomotive(Horgen,Switzerland).Wearealsofocusingonexpandingour team in China to grow with our appliance customers.

Interviewer: Ganesh, you have offered some very interesting perspectives already, but before we conclude, do you have any final remarks?

Ganesh: Really, what it comes down to is our desire to work with our customers to bring unique products to market – fast! Inventing is the only path to real change and, when combined with acquisitions and investments in marketing and our manufacturing capabilities, the result is true transformational, sustainable growth!

21

Performance Also Matters Rueckl says that RENUVA™ Technology does not sacrifice comfort and support for its lighter environmental footprint. “The product provides our applications with an excellent performance,” Rueckl says. “Our Equilíbrio Natural Ecoflex line has been very welcomed by the market because of consumers’ increasingly higher concern for the environment, which influences their purchase decisions. But that factor is not enough; the product also must perform well. Ecoflex products offer quality, comfort and beauty, together with environmental preservation.”

• EcoflexwasestablishedinSãoBentodoSul,Brazilin1987 by brothers Nelson and Francisco Carlos Habowsky.

•Thecompanyhas220employees,30externalrepresentatives and six sales consultants.

•About70percentofthefoamproducedbyEcoflex is used for mattresses.

•Ecoflexalsoproducesupholsteredfoamforchairs,and foam for civil construction and appliances.

Ecoflex, a foam and mattress manufacturer in Brazil, recently launched a product line, called Equilibrio Natural Ecoflex, that uses RENUVA™ Technology. This technology creates natural oil-based polyols (NOPs) made from soybeans or other natural oils, using a process that helps reduce the impact on the environment. RENUVA Technology is greenhouse gas neutral and, compared to conventional polyol technology,usesupto60percentfewerfossilfuelresources.Inaddition to RENUVA Technology, the Equilibrio Natural Ecoflex line includes other renewable resources such as bamboo.

“Ecoflex is concerned about the environment, minimizing our global footprint and providing the market with quality products with natural properties,”saysLivioRueckl,Ecoflexsalesmanager.“Weareconstantlyseeking environmentally sound solutions to be applied to our products.”

Ecoflex considered its options for the creation of Equilibrio Natural Ecoflex, then chose Dow’s RENUVA Technology. “In addition to developing and offering expertise that meets our needs, we realized that RENUVA technology enables products that honor our concern for the environment and sustainability,” Rueckl says.

Brazilian Mattress Manufacturer Turns to RENUVA™ Technology for Greater SustainabilityMore people are experiencing the comfort and support of mattresses that incorporate RENUVA™ Renewable Resource Technology from Dow, thanks to the introduction of a line of products in Brazil.

22

Fast Facts about Ecoflex

The expertise and experience of The Dow Chemical Company (Dow) in polyisocyanurate (PIR) foam technology is helping customers quickly and economically adapt to changing and varied requirements, for greater customer success.

Meeting Multiple Requirements Firestandardsforinsulatedsteel-cladpanelscanvarywidely according to geography, certifying agency (insurance company, trade association, government, etc.) and application (cold storage, warehouse, office space, etc.). Dow has experience adapting PIR technology and processes to meet these various needs quickly and reliably.

In2005,Vicwest,amanufacturerofinsulatedbuildingpanelsinCanada, surveyed North America and Europe, seeking the company that could serve as the best chemical system source for a new plant in Canada. Vicwest chose Dow.

“They told us what they wanted in terms of chemical systems and any particular properties from a building and construction standpoint,” saysMikeSkowronskiofDow’sPolyurethaneRigidFoamR&D. “WehadtoaddressflammabilitystandardsthatareCanada-specific. WhileVicwestworkedtoconstructtheplant,Dowworkedonachemical system that would meet the necessary requirements.”

In2006,thenewVicwestplantwasoperatingwithahydrocarbon-blownPIRformulationfromDow,designedtomeetFM4880firesafety standards, the first requirement that Vicwest wanted to meet. Since then, Vicwest has conducted a significant number of additional required fire tests. No major changes have been made to the chemical systems since production was initiated, proving that Dow’s product and the process are still working well.

Helping the Customer Save Money Tests to determine the flame rating of a panel must be paid for by the manufacturer. These tests can be elaborate – and expensive. Forinstance,theLPS1181firesafetytestwasdevisedbyinsurancecompanies in the U.K. To test a manufacturer’s panels, an open-ended

room the size of a domestic garage is built with the panels that are being tested. It is then ignited. Testers observe the fire as it progresses and survey the damage after the fire has run its course. To pass the LPS 1181 fire safety test, the extent of the damage to the panels and their joints must be limited.

A failed test means the manufacturer must adjust the panel fabrication and repeat the test until passing it. Dow’s flame-rated solutions often are successful on the first attempt, allowing customers to return to production, not rerun tests.

“Right from the beginning, Dow understood the need for high fire performance and was able to propose PIR technology that achieved the result without extensive testing and re-testing of panels to obtain certification,” says Richard Daley, managing director of Hemsec Manufacturing Ltd, an insulated panel manufacturerintheU.K.“WehavebeenimpressedbyDow’songoing commitment and support to make further advances such asswitchingfromHFC245faasablowingagenttopentane,thereby enhancing the environmental profile of our product.”

Flexible Choices In addition to quickly adapting its formulations to meet customers’ changing requirements, Dow also offers customers options for self-customization. Several years ago, PIR foam would have always come to the customer as a premixed compound. Now Dow also offers customers the option of a formulation with a separate catalyst package, giving the customer more control over the product.

“This gives them the ability to optimize the catalyst for every process and condition – and especially for every product thickness, all the way from two inches thick to six inches thick,” Skowronski says. “Dow’s expertise with PIR technology makes it possible to offer the levels of flexibility and reliability that allow customers to stay focused on their production and their market.”

FormoreinformationonDow’sPIRtechnology,visit www.pusystems.com.

DowHelpsCustomersMeetFireStandards Quickly and Economically

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NOPs made with RENUVA Technology are used in the comfort layers of five mattresses in the Equilibrio Natural Ecoflex line. The mattressmodelsarecalled:DoubleFlex,Paradise,RelaxLightVisco NoFlip,MultiSupportViscoNoFlipandFlexSpecialDream.

The Strength of a Collaborative Approach Dow considers collaboration with its customers to be vital. “Weexchangeideasandexperiences,whichstrengthensour relationship and gives rise to new opportunities and new ideas to be applied to our products, thus benefiting the entire chain,” Rueckl says. “Dow has been more than a mere

supplier, it has been a long-term supplier that we can count on. Also, whenever we request, we have great support from Dow in the development of products, delivery of materials, speeches and technical information, and the use of Dow’s brand logo. Dow has shown itself to be a very serious collaborator, committed to the quality of Ecoflex-branded products.”

Ecoflex is making plans to launch a new product line through the web site of Magazine Luiza, a major department store in Brazil, which will further widen the marketplace.

FormoreinformationonEcoflex,visitwww.ecoflexnet.com.br.

™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

Relaying the Message to Consumers The benefits that Dow provides are not limited to providing a product. Dow takes a “full lifecycle” service approach to its customers and their needs. This means not only selling polyols made from alternative feedstocks, but also helping customers get the best value out of the technology for their particular application.

“Wearehelpingourcustomersgaincredibilityin marketing green products,” says Marcel Loyson, Dow marketingmanagerofflexibleslabstockinEurope.“Wehelpthembringacrosstheirmessageinagoodway.Weworkwithour customers to make the RENUVA™ brand the equivalent of a guarantee for the industry’s highest levels of renewable content.”

We are very excited with the RENUVA™ Technology and so

far, we have had excellent results.

The increasing popularity of environmentally friendly products has become a trend that is impossible for manufacturers to ignore. In the United States, green products are a $209 billion industry and sales are estimated to reach beyond $400 billion by 2010, according to Nielsen Company and the Natural Marketing Institute.

Manufacturers Use Dow Technology to Meet Customer Demand

RENUVA™ Renewable Resource Technology from The Dow Chemical Company (Dow) is helping customers align their product offerings with this market trend. RENUVA Technology uses natural oil-based polyols (NOPs) to create products with high levels of renewable content but without the odor often associated with bio-based products. This technology isgreenhousegasneutralandusesupto60percentfewerfossil fuel resources than conventional polyol technology.

“Consumers’ desire for green products was a trend that we noticed developing in the bedding market,” says Paulo Morais, general manager for Eurospuma, a Portugal-based polyurethane foamproducerandbeddingmanufacturer.“Wehadaclearviewon the subject, and incorporating renewable content into our products recently became a viable option.” He adds that using bio-based materials “is a serious alternative for the future.”

A Better Way to Create NOPs Dow works closely with foamers and foam users around the world to search for exceptional solutions for their use of NOPs. Dow not only understands the historic shortfalls of NOPs, but identifies performance expectations. As a result, foams made with NOPs via RENUVA™ Technology from Dow demonstrate the performance, durability and comfort needed and expected by consumers of end-use products such as mattresses, furniture and pillows.

Eurospuma and Íşbir Sünger A.Ş., a Turkey-based polyurethane foam producer and bedding manufacturer, both have incorporated NOPs made via RENUVA Technology into their product lines. RENUVA Technology can be found specifically in Işbir’s Viscostar Nature Mattresses. Using NOPs from Dow to produce foam with high levels of renewable content helps set foam producers and bedding manufacturers apart in the eyes of consumers, who many times are willing to pay more for the “green” label.

“FoamsproducedwithNOPsaredifferentfromconventionalmaterials,” says Metin Gülteppe of Íşbir. “Producing green products makes us different in the market. It allows us to market our products on a different level.”

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Long-Term Partnerships As a world leader in the polyurethanes industry, Dow Polyurethanesisabletoleverageitsmorethan60years of experience to provide technical support and integrated solutions to its customers. Dow teams in Portugal and Turkey are working closely with Eurospuma and Íşbir to anticipate any potential needs or technology adjustments as soon as they arise.

“Dow, for Eurospuma, is an important partner,” Morais says.“Whenwedevelopanewidea,wereceivealotofsupportfromDowpeople.Wehavedevelopedmany new products with various technologies offered byDow.WeareveryexcitedwiththeRENUVA™Technology and so far, we have had excellent results.”

Dow Polyurethanes also has partnered with Íşbir for more than 10 years. This partnership has proven to be mutually beneficial and has brought many important lessons to both companies while working together to find solutions that meet Íşibir’s distinct requirements for their region and industry.

“Íşbir and Dow have been partners in Turkey for many, many years,” Gülteppe says. “Dow’s team in Turkey is reliable and sensitive to our questions and needs. They work not only to meet our current needs, but to help improve the market.”

As an increasing percentage of consumers look for greener products, RENUVA Technology helps manufacturers to keep pace with this trend.

“The desire for products made from renewable resources is driven by the market for sure, but it is the future,” Morais says.

25®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

They work not only to meet our current needs, but to improve the market.

C o m m i t m e n t . For more than 20 years, The Dow Chemical Company has been supplying adhesive and sealant products and technologies to a wide variety of industries, from construction and automotive, to furniture and films. And Dow remains committed to providing high-quality adhesives and sealants for years to come.

In fact, we continue to put science and technology to work to develop innovative solutions that meet customer needs. Solutions like ECHELON™ polyurethane prepolymers, which eliminate the formulators’ complex task of developing prepolymers and offer new options for product extensions and differentiation. And innovations like RENUVA™ Renewable Resource Technology, which enables bio-based performance polyols with reduced environmental impact and benefits such as improved water and chemical resistance.

Committed to serving the industry with innovative thinking – that is the spirit of the Human Element.

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Did You Know??Dow Polyurethanes supplied polyurethane coating for the tennis courts at the 2000

Olympic Games in Sydney, Australia.

“Dow Polyurethane Systems has looked to expansions, joint ventures and acquisitions to enable us to offer differentiated solutions to our customers in key areas and to allow us to better collaborate with customers on a range of systems and applications,” says Juan Antonio Merino, general manager, Dow Polyurethane Systems, a business within The Dow Chemical Company(Dow).“Wehaveforyearsthrivedonacustomer-intimate,collaborative approach and we will continue to do so. This is how we will remain a strong business, better serve our customers, accelerate innovation and contribute to the growth of the global economy.”

Investing in the Future of Dow Izolan In2006,DowteamedupwithIzolan,aleader in providing polyurethane systems to customers in Russia and the Commonwealth of Independent States (CIS), to offer customer-tailored, polyurethane (PU) systems products to a growing customer base in Russia. The new company, Dow Izolan, is based in Vladimir, northeast of Moscow.

Recent expansions, joint ventures and acquisitions have enabled Dow Polyurethane Systems to offer new and better systems and solutions to its customers.

HelpingFulfillMoreCustomers’ Needs as Dow Polyurethane Systems Grows

Dow Polyurethanes ExpandsAroundtheWorldDow Polyurethanes continues to invest in projects around the world to help customers bring high quality products to the marketplace.

Belgium• DowandBASFareworkingthroughajointventureto

produce propylene oxide (PO) at the world’s first commercial-scale hydrogen peroxide propylene oxide (HPPO) plant at BASF’s site in Antwerp.

• Hydrogenperoxide(HP)tofeedtheHPPOplantinAntwerp will be produced at a separate plant being constructed by Dow, Solvay and BASF.

China• AlargeR&Dandtechnicalcenterisbeingbuiltin

Shanghai, China, that will involve Polyurethane Systems.

Denmark• The2007acquisitionofEdulanA/S,apolyurethane

systems house specializing in rigid foam and elastomer technologies, will allow Dow to better serve customers in Scandinavia and the Baltic states.

Egypt• APolyurethaneSystemsmarketdevelopmentand

prototyping laboratory to serve customers across the Middle East, India and Africa opened in 2007.

Italy• AcapacityincreaseattheR&DfacilityinCorreggio

is expected to be complete in 2009.

The Netherlands• ExpansionattheTerneuzensitetomeetthegrowing

demand for polyols is expected to be complete in mid-2009.

Portugal• ExpansionattheEstarrejasitetoallowforincreased

production of methylene diphenylene diisocyanate (MDI) is expected to be complete in 2009.

Above, a groundbreaking ceremony September 9, 2008 marked the start of construction of Dow Izolan’s new production facility in Vladimir, Russia. At right, Aldo de Santi, general manager, Dow Izolan, addresses guests at the event.

(continuedonpage27)

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Russia• PlansaretobuildaPolyurethaneSystemsdistribution

center in St. Petersburg.

• DowIzolanisbuildinganew,state-of-the-artproductionplant in Vladimir, which is expected to be complete in 2009.

Spain• Anewformulationandprototypingdevelopment

laboratory to develop differentiated systems formulations for customers throughout Southern Europe and North Africa was inaugurated in Ribaforada in 2008.

Thailand• TheSCG-DowGroupisbuildingaworld-scalePOfacility

in Map Ta Phut that will utilize HPPO technology jointly developed by Dow and BASF. It is expected to be complete in 2011.

• Alsothroughajointventure,DowandSolvayarebuildingan HP facility that will provide raw materials for the PO plant. It is expected to be complete in 2011 as well.

U.K.• Athree-yearprojecttoexpandandmodernizethelaboratory

at Dow Hyperlast will result in a state-of-the-art facility that will be a premiere PU elastomers R&D center.

U.S.A.• Dowisinthemidstofathree-yearprocesstoexpandMDI

production at the Freeport, Texas site by 50 percent.

• AnotherexpansioninFreeportfortheincreasedproductionof specialty mix polyols is expected to be complete in 2009.

For more information, visit http://www.dow.com/polyurethane/news/.

HelpingFulfillMoreCustomers’ Needs as Dow Polyurethane Systems Grows

Ground was broken on September 9, 2008 for a new, state-of-the-art production plant in the Vladimir area, where a variety of PU products will be produced. The new facility will expand manufacturing capabilities and help Dow Izolan serve its customers in Russia’s fast-growing automotive, consumer, footwear, furniture, construction and appliance markets. Construction of the new facility is expected to be completed by the end of third quarter 2009 with operations coming on line shortly thereafter.

“This activity at Dow Izolan is just one example of Dow’s continued commitment to invest in activities and geographies that will benefit customers and the economy,” Merino says.

Largest PU Elastomers R&D Center Dow intends to make significant financial investments over the next three years in Dow Hyperlast, a division of thePolyurethaneSystemsbusiness,formedafterthe2007acquisition of Hyperlast Limited, British Vita’s Polyurethane Systems business. Dow Hyperlast specializes in innovative spray and cast elastomers for the marine, engineering resin, oil and gas pipeline, and automotive industries. Over the next three years, Dow will invest in the expansion of the Dow Hyperlast plant, and the plans include expanding and modernizing the existing laboratory to create a state-of-the-art facility that willbethelargestPUelastomersR&Dcenterintheworld.

Pipeline Projects Dow Hyperlast products for pipe insulation help protect and insulate both on- and off-shore pipes that pump crude oil to keep the oil hot, which allows the oil to be pumped faster and more efficiently from one location to another while preventing impurities in the oil to crystallize and create blockages. These products and Dow technologies are helping to make many pipeline insulation and coating projects possible throughout the world.

AHYPERLAST™PUFfoamsystemfromDowhasbeenselectedfor use for a project in India that, when finished, promises to be the largest piping project in India’s history. This pipeline will extendapproximately600kilometers(373miles)onland,withthepossibleextensionofanother110kilometers(68miles).InTurkmenistan,plansaretouseHYPERLASTSyntactic512E,a non-mercury catalysed polyurethane elastomer system from Dow, for a pipeline project at a water depth in the Caspian Seaof150metersandwithanoperatingtemperatureofthelineat90°C.Inaddition,HYPERLASTSyntacticDW512/200Efrom Dow has been selected to further a deep-sea pipeline project in Malaysia. At an ocean depth of 1,200 meters, this is one of the largest piping projects for PU Systems.(continued on page 28)

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Plans are to expand and modernize the laboratory at the Dow Hyperlast facility in Birch Vale, U.K.

Edulan Acquisition DanishcompanyEdulanA/S,anindependentPUsystemshousespecializing in rigid foam and elastomer technologies, was acquired byDowin2007.ThemovestrengthenedDowPolyurethaneSystems in Scandinavia and the Nordic region of Europe, as well as in the emerging markets of Latvia, Lithuania and Estonia. In addition to the business and production facility in Denmark, Dow also acquired the rights to Edulan’s rigorously formulated and field-tested systems, which can be developed into tailored solutions for Dow Polyurethanes customers around the world.

R&D Expansions In Correggio,Italy,DowisexpandingitsR&Dcenter,whichis expected to be completed in 2009. Dow is creating a large R&DandtechnicalcenterinShanghai,China,thatwillinvolvePolyurethane Systems. Dow also expects to expand in Turkey, the Middle East and Thailand, and perhaps in Mexico, India, and Russia, as well as in mature geographies, such as Germany.

Market Development and Prototyping Laboratories The growing needs of customers across the Middle East, India and Africa are being met thanks to the creation of new products at a Polyurethane Systems market development and prototypinglaboratory,whichopenedinEgyptin2007.Thelaboratory supports the continuous development of innovative polyurethane-based fully formulated products to serve a vast array of applications such as appliances, building and construction, footwear, and coatings, adhesives, sealants and elastomers.

A new formulation and prototyping development laboratory was inaugurated in Ribaforada, Spain in 2008. The laboratory, which is part of an existing Dow Polyurethane Systems facility at the site, is focusing on the development of differentiated systems formulations for customers throughout Southern Europe and North Africa. The facility includes prototyping units for in-house trials and space for polymer testing capabilities and equipment for flexible molded and rigid foams, footwear applications, coatings, adhesives, sealants and elastomers.

“The investments made at the Ribaforada facility underscore Dow’s commitment to our customers,” says Javier Carnicer, Dow Polyurethane Systems House director for Ribaforada. “Many of our customers throughout the region rely on our polyurethane chemistry and formulation expertise to help them develop new and differentiated solutions to meet specific market needs such as environmental sustainability, and performance and regulatory requirements.”

New laboratories also are planned in Brazil and Thailand.

On the Horizon The proposed acquisition of Rohm and Haas, which was announced in July 2008, is expected to close in first quarter 2009. The two companies’ technologies will complement each other, reinforce the strength of Dow’s Polyurethanes business and further Dow’s corporate strategy.

“These important strategic movements would not have been possible without Dow Polyurethane Systems’ employees and customers,” Merino says. “It will be their industriousness, innovative spirit and dedication that will propel us into the future, as we continue to grow both organically through the development of new technologies and products, and through acquisitions focused on strategic regions around the world.”

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A Polyurethane Systems market and prototyping laboratory in Egypt helps meet the needs of customers across the Middle East, India and Africa.

An employee in the Correggio lab.

Did You Know? ?The Dow Jones Sustainability World Index recently announced it has rated The Dow Chemical Company as one of the top performers in the global

chemical industry for the eighth time since the launch of the Index in 1999.

®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

HYPERKOTE™500SprayablePolyurethaneSystem,therapidcuring, non-solvented concrete waterproofing and protection system from Dow Hyperlast, now offers the additional benefit of approval byWRAS,theWaterRegulationsApprovalScheme.

WRASaimstoavoidwaste,misuse,undueconsumption,erroneousmeasurement and contamination of water supplied by water companies in the UK. Approval by the scheme recognizes that HYPERKOTE500complieswiththerequirementsoftheWaterSupply(WaterFittings)Regulations1999andamendments.

HYPERKOTE500iswell-suitedtowaterproofingandhelpingprotectthe surfaces of concrete structures containing potable water, including service reservoirs.

Comprising a rapid curing, two-component elastomer, HYPERKOTE 500sprayablepolyurethanesystemcreatesanelastomericmembranewith excellent mechanical properties, combining high tensile strength and elongation at break values with good tear propagation resistance to deliver excellent crack bridging performance.

Water Regulations (WRAS) Approval for HYPERKOTE™ 500 Concrete Waterproofing and Protection System

HYPERKOTE™500canbeappliedatlowtemperatures,offeringrapidbuild-upofthemembranethickness.AswellasWRASapproval,theHYPERKOTE500formulationdoesnotusesolvents.

HYPERKOTE500isoneoftheHYPERKOTErangeofsprayablepolyurethane systems suitable for water and waste water service reservoirs (certification dependent), sewage treatment plants, digesters, sedimentation tanks, sumps and secondary containment areas. It has been developed and is supplied by Dow Hyperlast, a division of Dow Polyurethane Systems, and a leading global developer of polyurethane materials for engineering polymers and systems.

FormoreinformationonproductsofferedbyDowHyperlast visit www.dowhyperlast.com.

®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

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We’re Where You AreWith more than 26 systems houses and service centers located around the globe, Dow Polyurethane Systems is able to quickly meet your needs wherever you or your customers may be. With 60+ years of experience in polyurethane chemistry, we work with our customers to develop solutions to meet emerging needs and to solve today’s problems.

Manufacturer Improves Process, Cuts Costs with Dow TechnologyThe Haier Group, a home appliance manufacturer headquartered in China, is now better equipped to keep pace with growing demand for home appliances in China, and is saving money in the process – thanks to technology from The Dow Chemical Company (Dow).

Chinese demand for major household appliances is expected to grow 12 percent per year through 2010, according to the FreedoniaGroup,aninternationalbusinessresearchfirmbased in Cleveland, Ohio, USA. This market expansion will resultinthesaleofmorethan138millionunitsthatyear.

Cost-Saving Solutions Rigid foam from Dow Polyurethane Systems, a part of Dow Polyurethanes global business group, plays an important role intherefrigeratorindustryasaninsulatingmaterial.Whilerising costs of petroleum and other raw material feedstocks resulted in increased costs related to the polyurethanes products Haier was purchasing from Dow, the Dow Polyurethanes team began working with the appliance manufacturer to simplify its foaming process. “Their work led to a reduction of Haier’s product consumption per unit rate and improved efficiency in its plant, thereby reducing overall production costs,” says Ricky Ye, of Dow Polyurethanes Technical Sales and Development.

™VORANOL 410 is a trademark of The Dow Chemical Company

Project Director for Dow Polyurethanes

Alfredo Larre worked his way through college in his native Argentina and, in the

process, became an expert in polyurethane chemistry. In the past 10 years as a

project manager, Alfredo has overseen 15 breakthrough technical development

projects in four businesses, and is now working on three more projects

that could have a major impact on improving the environment and

reducing petroleum oil use. Alfredo leads Polyurethanes Seminars and

Project Management Seminars for R&D in North America, Asia-Pacific and

Europe, and he mentors young Hispanic engineers. Alfredo recently was

awarded the 2008 Hispanic Engineer National Achievement Award (HENAAC) for

Lifetime Achievement. That’s the spirit of the Human Element™.

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“Dow’s Polyurethane Systems experts did a wonderful job in helping us to reduce PU consumption per unit and improve productivity,” says Liu Peng, Haier’s Polyurethane (PU) purchasing manager. “Dow increased its selling price to cover oil and natural gas price increases, but at the same time we reduced our overall cost by reducing product consumption and improving productivity.”

The Value of a Long-Term Relationship Dow operates on the belief that a relationship with a customer is not limited to the sale of a product or service, so helping Haier to solve these issues is just part of the job for Dow Polyurethane Systems.” It is Dow’s goal to help customers with their distinct needs,” saysGuWei,appliancemarketdevelopmentmanagerforDowPolyurethaneSystemsAsia-Pacific.“Wehelpthem overcome challenges that present themselves.”

“Dow has a very good product,” Peng says. “However, what they sold is not only the product but the solution, especially for the PU product which is used in refrigerator insulation, and is a key technology in the refrigerator productionprocess.WeselectedDowastheonlystrategic partner for chemical supply primarily because we understand Dow is a creative and innovative solutions provider that can bring long-term value to us. The past 20 years have witnessed many chemical suppliers phased out from Haier; however, Dow is still here.WevalueDowasalong-termstrategicpartner.”

•Foundedin1984inChina,Haierhas240subsidiary companiesand30designcenters,plantsandtrade companiesandmorethan50,000employees throughout the world.

•HaierisChina’slargesthomeappliancebrandandtheworld’s fourth largest home appliance manufacturer.

•Morethan12millionunitsofrefrigeratorsandfreezersare produced annually at Haier’s 20 production facilities worldwide.

•Inadditiontomanufacturing,theHaierGroupspecializesin technology research, product development, trading, and financial services.

•TheHaierGrouphadglobalrevenuesofRMB118billion(US$16.2billion)in2007.

Learn more about Haier at www.haier.com.

Source:http://www.haier.com/index.htm 31

Fast Facts about the Haier Group

Did You Know??Dow has been named the Official Chemistry Company of the PGA Tour, Champions Tour, Nationwide Tour and the Tournament Players Clubs for 2009 through 2012.

FloorcoveringexpertsShawIndustriesInc.andDowPolyurethanes,adivision of The Dow Chemical Company (Dow), are working together to bring new technology to the residential carpet cushion market.

Opportunity Knocks Most carpet cushion is made of rebond, a conglomerate of excess polyurethane foam left over from the manufacture of cushions for furniture, bedding and automobiles. The excess pieces are ground up, glued together and steam cured, creating a bonded cushion that can be used as underlayment for carpet.

After many years of rebond’s popularity in the U.S., Europeans recently started to use rebond for carpet cushion, causing demand for rebond to increase. At the same time, the supply of excess foam decreased due to downturns in the automotive and furniture markets. So as demand grew, supply shrank, causing prices to rise.

Shaw Industries viewed this problem as an opportunity to develop a totally new underlayment option. Instead of devising a “me too” rebond system, Shaw worked with Dow Polyurethanes to develop a next-generationproduct.InDecember2006,TripleTouchwasborn.

To get there, Dow technology provided the ability for Shaw Industries to create a new kind of carpet cushion system made with a mechanically frothed and chemically blown polyurethane system.

A Trio of Valuable Attributes TripleTouch is so named because of its three key attributes:

• Comfort: Before TripleTouch was launched in January 2008, Shaw Industries had marketed only a commercial grade carpet cushion system. It proved to be durable, but its high density makes it very firm, so it is preferred for hotels and airports – not for bedrooms and family rooms. TripleTouch has changed that. “WhatShawandDowaccomplishedtogetherisexactlywhatwe needed,” says Brian Hankins, manager of marketing and new business development at Shaw Industries. “Now we not only have a cushion product, we have one of the most, if not the most, comfortable cushion products that we know of under carpet.”

• Longevity: Carpet fibers withstand more wear when placed on TripleTouch, extending the life of the carpet. In response, Shaw Industries extended the warranties of its four- and five-star-rated

Dow Polyurethane Technology Helps Shaw Industries Increase Comfort, Longevity and Sustainability of Carpets

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“HPPO is an exciting technology that supports Dow’s focus on sustainability through greater energy efficiency, reduced physical footprint and improved environmental performance,” says MadyBricco,globalproductdirectorforDowPO/PG,abusinessunitwithinDowPolyurethanes.

Leadership Quotes

At Shaw, we want to make sure we do everything we can to be environmentally responsible without compromising comfort, performance and value. Dow helped us achieve the perfect combination.

carpets that are installed over TripleTouch. “Because of the durability of frothed urethane, we had confidence in the performance of the new polyurethane and we were able to add a lot of value not only to the cushion warranty of this but to the whole flooring system – the carpet and cushion combined,” Hankins says. “TripleTouch provides the consumer with confidence that their carpet is going to last a lot longer.” In addition, TripleTouch cushions contain a very effective moisture barrier and antimicrobial qualities.

• Responsible: The TripleTouch cushion system is designed to last the lifetime of the house in which it is installed – not just the useful life of the carpet on top of it. That means replacement carpet can be laid on top of TripleTouch again and again. “Every carpet installation that involves replacement of a pad means additional waste – and it’s going to a landfill,” Hankins says. “The use of TripleTouch significantly reduces waste.”

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®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

RENUVA™ Renewable Resource Technology Creates Bio-based Polyols for Adhesive and Sealant Applications

Dow Polyurethanes is now offering more sustainable solutions to adhesive and sealant formulators with natural oil-based polyols designed specifically for use in adhesive and sealant applications.

Natural oil-based polyols (NOPs) are not a new concept, but The Dow Chemical Company (Dow) has developed a distinct process to create better performing NOPs that challenge conventional polyols. Dow technology helps eliminate odors typically associated with bio-based polyols while delivering the processing and performance customers expect from Dow with high levels of renewable content in the finished products. This next-generation technology is greenhouse gas neutralandusesupto60percentfewerfossilfuelresources than conventional polyol technology.

Dow’s tailor-made, bio-based polyols offer benefits that cover numerous applications within the adhesive and sealant marketplace. Key among these are:

•Improvedwaterresistance

•Excellentchemicalresistance

•Easeofapplication

•Goodadhesiononavarietyofsubstrates

•Highflexibility

The introduction of high-performance, bio-based polyols via RENUVA™ Renewable Resource Technology from Dow further demonstrates Dow’s commitment to this mission and to helping customers find ways to create more sustainable products and a more sustainable future.

Thanks to Dow technology, TripleTouch also contains less petroleum-based product than traditional cushions. “At Shaw, we want to make sure we do everything we can to be environmentally responsible without compromising comfort, performance and value,” Hankins says. “Dow helped us achieve the perfect combination.”

Installers, Consumers Are Pleased It has been on the market less than a year, but TripleTouch has received positive marks from carpet retailers and national home centers, as well as carpet installers and consumers. TripleTouch is a high-end cushion system, yet consumers see its value and are making it a part of their carpet purchases. Installers say it is much more comfortable for them to install. “The attributes of this product – the appearance, the comfort and the sustainability – have resulted in a very positive response from everyone,” Hankins says.

Did You Know??The EPA named Dow as a 2008 ENERGY STAR Partner of the Year for excellence in energy management

and reduction in greenhouse gas emissions.

®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

andinstalledinthatnation.“ENFORCER™ Sport backing from Dow is designed to create a whole new level of artificial turf that addresses today’s extreme usage requirements, while allowing for a more efficient manufacturing and installation process,” says Peter Mackey, Dow European business development manager for PU carpet and artificial turf.

LikeotherDowPolyurethanesbackingsystems,ENFORCER™ Sport backing is designed to be durable, with strong tuft bind even when wet. This provides a stable, uniform playing field regardless of use or weather conditions.

DoménechHermanosmanufacturedtheturf,whichcovers7,586squaremeters. “The polyurethane backing is a very strong, yet light product,” says Emilio Doménech, owner and CEO of Doménech Hermanos. “It attaches to the turf fibers like no secondary backing we’ve worked with.”

Product Pleases Installers, Players Theturfwasinstalledinspring2007.“Wehadonlypositivecommentsfrom the installers,” Doménech says. “The extending of the rolls, the cutting of the edges and the gluing of joints was easier than with other turf systems.”

Athletes like the new system, too. “In fact, they prefer this pitch with our turf product over another one installed in the same complex, but with a different make,” Doménech says.

Read more about the Miguel Contreras Learning Complex inLosAngelesandFranciscoLaportaStadiuminAlcoy atwww.dow.com/artificialturfsolutions.

Fulfilling High Expectations The state-of-the-art athletic fields of the Miguel Contreras Learning Complex in Los Angeles, California, USA, demanded a material that met high expectations. That’s why artificial turf by Belgium’s DOMO Sports Grass was installed. Its backingsystemcontainsENFORCER™Technology,givingitsuperior marks for playability, safety and maintenance.

The polyurethane (PU) backing system offers more give, reducing thenumberofinjuriesassociatedwiththeuseoftheturf.“Wedon’t have to do the extra taping on our athletes we’ve done in thepast.Withtheoldturf,athleteswouldoftenplanttheirfoot,and their knee would not be able to move, which caused lots of injuries.We’vehadfew,ifany,incidentsofthisoccurringnow,”says Pete Carrion, head football coach at Miguel Contreras.

Maintenance Is Easy A bimonthly maintenance program for the 200,000 square feet of turf calls for sweeping the fields for debris followed by a pass with greens groomers to balance the rubber and sand infill and make thesyntheticturffibersappearnew.“Withsuchhighdailyuse,howwell the turf would perform was a key factor, but it still needed to meetourmaintenancerequirementsaswell,”saysPaulWarner,owner/authorizedrepresentative,CentralRegion,NewConstructionfor the Los Angeles Unified School District. “The reality is that this artificial turf requires less maintenance than natural grass.”

Spanish Stadium’s Turf Is a First TheartificialturfatFranciscoLaportaStadiuminAlcoy,Spain, is the first 100 percent PU-backed football pitch to be produced

The lives of athletes all over the world are being enhanced by Dow’s polyurethane technology used in backing systems for artificial turf. Let’s look at examples in Los Angeles, California, USA, and Alcoy, Spain.

Polyurethane Technology Improves Artificial Turf

34

Carpet Backing System SavesMoney,SparesFeet

Every day, travelers in Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, USA, have a more pleasant experience while waiting to catch their flights, thanks to Dow Polyurethanes technology.

BeforeAtlantahostedthe1996Olympics,theairportgotamakeoverthatincluded50,000squareyardsofcarpetfromMillikenContract. The carpeting used Comfort Plus® Cushioned Backing, which is made with ENHANCER™ Technology from Dow.

Good for the Airport With85milliontravelersayearand55,000employees,theairporthasparticularflooringneeds.“Weneededacarpetthatwould be very durable and provide extended lifecycles,” says KevinWalls,principalarchitect,CityofAtlanta–DepartmentofAviation.“Soweselectedaheavy,26-ouncemodularcarpetwith a quality cushioned backing system. This carpet, especially its pattern, is designed to help hide spills, and the polyurethane backing was chosen over other options due to its durability.”

Polyurethane helps the carpet yarn adhere to the backing, resisting snags, pilling and unraveling. The backing system also allows for easy and effective cleaning. All of this promotes the carpet’s long-term durability and appearance, which cuts the airport’s costs. “If you get 11 years out of your carpet, rather than five, you double the return on your investment,” says Donald Hooper, Milliken aviation market manager, the exclusive manufacturer of the carpet backing.

Good for the Passengers ENHANCER™ Technology in the carpet backing system reduces heel-strike force as people walk, and it absorbs sound, so waiting in line or listening to a public address system is more comfortable. “This backing is like the shock absorbers on a car,” Hooper says. “Imagine riding in a car without shock absorbers – you’d feel every bump and dip in the road, and it would take a major toll on the vehicle.” In this way, not only travelers but also airport employees, who spend long periods on their feet, benefit from polyurethane technology.

35®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.

FormoreaboutENHANCER™Technology,visit www.dowcarpetbackings.com.

Editorial Team & Contributing Writers

Myra Dean,DowPolyurethanesBusinessPublicAffairsLeader•Jessica Dub,DowPolyolsandPO/PGGlobalBusinessCommunicationsManager

Paul Fitzgerald,DowHyperlastGlobalBrandManager•Janet Hansen, Dow Polyurethane Systems Marketing Communications Manager

Elise Heffelfinger,DowPolyurethaneSystemsGlobalBusinessCommunicationsManager•Breaha Montague-Bauer, Dow Public Affairs Project Manager

Greg Wasserman, Intern from University of Missouri, Columbia

Design, Production & Copy Contribution

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You’re Invited to Get InvolvedYou’re Invited to Get InvolvedThank you to all of the companies featured in this year’s issue of RE:Invent: Products, Solutions and News from Dow Polyurethanes. If you would like to see your company featured in next year’s issue, contact Tracy Taylor at TLTaylor2@dow.com.

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