Jeff Stokvis

Jeff Stokvis asked why Dow has not discussed joint venturing the Alberta cracker project to alleviate cash flow pressure and if such an option is being considered. He also requested an update on polyethylene demand trends in the third quarter and year-to-date.

Answer

Karen S. Carter, Chief Operating Officer, reported stable polyethylene demand, particularly in packaging and personal care, noting a consumer shift to private labels. She highlighted record domestic and export demand in September and confirmed that the new Poly7 unit is already sold out. Jim Fitterling, Chair and Chief Executive Officer, clarified that the Alberta project is delayed, not canceled, and remains a low-cost, first-quartile asset. He mentioned Dow's past experience with joint ventures (e.g., MEGlobal in Texas 9) and stated that all possibilities are considered, but there are no specific JV discussions to report for Alberta.

Jeff Stokvis asked why Dow has not considered joint venturing the Alberta cracker to alleviate pressure on company cash flows. He also requested an update on polyethylene demand in the third quarter and year-to-date.

Answer

COO Karen S. Carter stated that polyethylene demand has been stable, with packaging and personal care segments remaining strong. She noted that the industry set records for domestic sales and exports in September, and Dow's new Poly7 unit in the U.S. Gulf Coast is already sold out. Chair and CEO Jim Fitterling addressed the Alberta project, acknowledging the success of past joint ventures like Texas 9 and stating that all possibilities, including JVs, would be considered for Alberta, emphasizing its long-term strategic value as a low-cost asset.