On the way to 2015 Sustainability Report 2010 Dow Benelux Content Dow in the Benelux

Dow in the Benelux 3 About Dow Dow combines the Dow Benelux operates seven sites in Belgium and the Netherlands, power of science and technology and employs a total of 1,959 people. In addition, hundreds of employ- CEO Dow Benelux B.V. 4 with the ‘Human Element’ in order ees of subcontractors work on our sites on a daily basis. to make improvements that are Dow’s Sustainability goals 6 vitally important to human progress. By integrating chemical science and Netherlands Dow’s largest site Belgium Dow operates five sites Management and Supervision PEOPLE … People are our best ambassadors 10 innovation with the principles of in the Benelux region – and the across Belgium, including three The Board of Directors of Dow sustainability, the company is helping company’s second-largest site in production sites. In Tessenderlo, Benelux B.V., which is responsible for ENVIRONMENT … Delivering on our promises 16 to resolve some of the world’s most the world – is located in Terneuzen. the company manufactures plastics general management, is comprised pressing issues, such as the need for The main part of the site consists used in the production of a variety of of the following members: Gerard ECONOMY … Room for new investment 22 clean drinking water, saving energy, of cracking plants that convert the packaging materials and pipelines, van Harten* (President), Peter Holicki generating sustainable energy raw materials naphtha and LPG into as well as the insides of refrigerators (Vice-President), Dieter Schnepel (also I-PARK 26 and increasing agricultural output. ethylene, propylene, butadiene, and and television sets. The Zwijndrecht general manager of the Terneuzen The various divisions dedicated benzene – the main ingredients used site processes CellosizeTM, which is site), Dré Galle* and Marc Sloot* Also in 2010 30 to specialty chemicals, advanced in many plastics and chemicals. used in the manufacture of products (Secretary). The Supervisory Board materials, agricultural sciences, and Polystyrene, for example, is used such as paint, building materials, of Dow Benelux B.V. is responsible Vision, mission and values 31 plastics are at the forefront of the in the manufacture of household and personal care products. The for supervising the management of industry. They provide technology- appliances; polyethylene is used for Tertre site is dedicated to the the company and for advising the based products and services to the coating of beverage cartons, and production of polyol, an ingredient Board of Directors, which includes customers in approximately 160 StyrofoamTM serves as an insulation of polyurethane foam, which is the following members: Bart Groot, countries and in high-growth material for roof, floor, and wall used in the manufacture of cars, President (former Vice President, industries such as electronics, water, applications. The Terneuzen site is refrigerators, and beds, as well as in Central & Eastern Europe, and General energy, coatings, and agriculture. In also home to the largest Research the construction industry. Edegem is Manager of Dow Central Germany), 2010, Dow reported revenue of USD and Development department in home to the service center and sales Don Taylor (Vice President of Dow 53.7 billion and employed 50,000 Europe, which is the driving force office for the Benelux region, while Advanced Materials, Manufacturing people worldwide. The company’s behind many of our innovations. the site also includes a sales office & Engineering and Environment more than 5,000 products are Another one of Dow’s Dutch of Dow AgroSciences. In Brussels, Health & Safety) and Mauro Gregorio produced at 188 sites in 35 countries production sites is located in Delfzijl. we operate the Office for EU (Commercial Vice President of Base across the world. Government Affairs & Public Policy, Plastics for EMEA). which represents Dow’s interests * Also responsible for managing the in its dealings with European Union Belgian sites institutions.

2 Dow Benelux Sustainability Report 2010 3 Dear reader, is the way it should be, as we are this Sustainability Report. In 2011 Everything related to sports, from Dow, we can also propose specific each other’s customers and need we will also be working to develop a the poles used for pole jumping to items for the agenda, and show what The economic recovery that first each other to achieve success. country strategy, which will explore the clothing, shoes, and artificial is important to us. One example is became evident in 2009 continued The development of the Maintenance Dow’s opportunities and possibilities grass used by athletes, are products fair management of the emission in 2010, both globally and in the Be- Value Park (MVP) in Terneuzen is cur- in the Benelux countries. of the chemical industry. Chemicals trade. This system has a major nelux. Although several of our plants rently well under way. The Value Park enable athletes to take the next impact on the industry in which we benefited from this revival, others will provide clients and contractors Strict goals We did not make any step that allows them to set new operate: we would like to maintain continued to struggle. Products that with the opportunity to collaborate major investments in the Benelux records. Our partnership with our competitive position, and in order closely depend on the construction and exchange knowledge. In addition in 2010. Instead, we used the past the Olympic Games is a unique to achieve that this system must be industry remained badly affected by to Dow, other industrial companies, year mainly to assess potential future opportunity to demonstrate this to well-organized. the crisis in 2010. Plant production including Yara and Cargill, based in investments, i.e., what is needed to the public at large. However, we was strongly industry-related, but the the Kanaalzone (Canal Zone) have further consolidate our position within won’t have to wait until the 2012 In this Sustainability Report, we overall picture was more favorable also committed to the project. The Dow both globally and regionally? Olympics in London, as 2011 has report on results achieved related than in 2009. So it seems that the Maintenance Value Park is a resource However, we did construct an all-new been designated the International to people, the environment, and the economy is getting stronger and we in achieving innovative maintenance, building to accommodate the BPSC Year of Chemistry by the United economy in 2010. We will also look can start anticipating opportunities for which will allow us to keep our plants employees. Nations. Dow was the first global ahead to the coming years. The year future growth again. competitive in the long term and Our safety record at the end of 2010 partner in this initiative, which 2010 was a major milestone for Dow make maintenance work appealing to was good, with the total number of is supported by UNESCO. The from a variety of perspectives. Speci- The face of the transformation talented young people. We believe it accidents limited to five in the Bene- International Year of Chemistry (IYC) fically, we are now halfway towards In 2010, we said goodbye to 15 is better to achieve that goal toge- lux. While five accidents was still five raises awareness among the public achieving our Sustainability goals for percent of our workforce – these ther rather than separately. The MVP too many, after a poor start to the at large of the central role chemistry 2015. Are we on the right way? Will employees were transferred to Styron will be a center of excellence, which year worldwide, the final result was plays in our day-to-day lives. It shows we achieve the targets set? We invite Netherlands B.V. The arrival of Styron is exactly the image we would like nevertheless decent. Our contrac- that chemistry plays a vital role in you to read this report and find out. marked the establishment of the to project. All these developments tors did an even better job: for the finding solutions to issues related to Industriepark Terneuzen (I-Park). give the transformation an identity: first time since 2005 they caused sustainability, energy, and climate. Gerard van Harten, Along with the launch of the Business the I-Park – the partnership between fewer accidents than Dow in abso- Since Dow shares this mission, we CEO, Dow Benelux B.V. Process Services Center (BPSC) – several entities on the Dow site – is lute numbers. We have congratulated fully support this initiative, as it allows which officially opened in February designed to support and facilitate the them on this excellent achievement. us to increase awareness of the 2010 – this resulted in a fundamental growth of Dow and the other com- In addition, they have shown that it chemical processes at Dow and the change for Dow Terneuzen. I’m proud panies as effectively as possible. In is possible to achieve the strict goals technologies that drive them among a that Terneuzen has proven to be the this process, it is important that we set by our company. Dow maintains larger audience. We also do this with best location for BPSC. In a little over position ourselves in such a way that the target of zero accidents, believing an eye to the future: we hope that an a year, the number of employees any interested party can settle here that any accident is one too many. I increasing number of young people increased from 150 to 255, and this and develop according to their own am convinced that, if we did not set will take math and science in school, growth is set to continue in 2011 – needs and requirements. those goals, we would see another which makes it more likely that they not just in terms of the workforce, rise in the number of accidents. Strict will pursue science and technology- “Although other chemical compa- but also in terms of the number of From global to local The option targets require us to motivate each related subjects in college. nies also set goals and objectives, services that will from now on be to respond even better to local needs other every day again and keep us on Dow was one of the first to show provided by the BPSC in Terneuzen. and requirements has increased our feet. Chemical industry: a top this degree of ambition. And that The sale of several business units following Dow’s transformation. We industry In early 2011, the is deliberate – we need that ambi- from the styrene, polycarbonate, have determined that geography Dow and chemistry: more Dutch government designated the tion in order to achieve outstand- and latex chains and the subsequent will once again be a key priority in visible than ever In late chemical industry as one of nine ing results. Goals provide us with establishment of Styron and transfer our strategy. The shift from global 2010, Dow announced it would “top industries.” This shows that direction; they show us where of Dow employees to the new com- to local gives us the opportunity to be entering into a partnership the government recognizes the we’re headed and what we feel pany all proceeded smoothly. This meet local needs and requirements with the Olympic Games for the importance of our sector. It is now is important. For example, zero is certainly to the credit of Styron’s even more so than before. Dow next ten years. The reason behind up to the industry to set the agenda, accidents should not just be the employees, and there was great Terneuzen has maintained its own this partnership is clear: for those and we must take advantage of objective of Dow, but of each of willingness on both sides to turn the site strategy for many years, which engaging in professional sports, that opportunity in order to raise the its employees as well.” partnership into a success. And that we will review more thoroughly in chemistry is more or less inevitable. issues we feel are important. As

4 Dow Benelux Sustainability Report 2010 5 Dow’s Sustainability Goals

In 2005, for the second time in its history, Dow defined a number Local priorities 2. Reducing the number of further, larger reductions in this area of resolutions towards contributing to a better and more sustainable Although the goals for 2005 initially spills by 75 percent by means of ‘small-scale’ projects. world: the 2015 sustainability goals. Where are we now, halfway seemed highly ambitious, it turned There is a leak or spill if more than 50 Nevertheless, we will continue to towards completing this journey? What might be improved, and what out that the strategy worked. By kilos of product – or an equivalent of evaluate whether, and how, we will must be improved? Also, where do we go from here? It’s time for an 2005, Dow was significantly safer this amount – accidentally escapes be able to implement key improve- interim assessment. and more environmentally friendly, from the processing systems or storage ments in this area. We will also be and used significantly less on a pro- tanks. This might involve either fluids checking whether any additional portional basis. How can we do even or solids. As before, this represents energy savings can be made in the In 1995 Dow set goals for the first Global goals Developing products that help better? That is the basis of our 2015 a very stringent standard. While a chain from raw material extraction to time, for the year 2005. These 10- These are the global 2015 Sustainabi- solve world challenges In 2015 goals. Not all goals that Dow sets number of divisions have already been delivery to the customer. This form of year goals were mainly designed to lity Goals: Dow will have created at least three worldwide apply to the Benelux sites performing very well in this area, other ‘chain efficiency’ has already resulted improve our safety performance and products that play a key role in sol- or – even more specifically – to the departments, particularly those with in some fine examples of good coo- reduce our environmental impact. Local protection of human ving world challenges. This might Terneuzen site. The global goals have more complex processes, have proven peration with our customers. When the 2015 goals were announced, health and the environment involve contributions to affordable therefore been translated into local to be somewhat more vulnerable to it immediately became clear that Dow aims to achieve an average and sufficient food supplies, decent goals for Terneuzen, Dow’s largest chemical leaks. Dow intends to further 4. Reducing greenhouse gas Dow was now more focused on the improvement of 75 percent from housing, sustainable water supplies, production site outside the United reduce the number of spills and leaks emissions by 10 percent outside world. The reason for this 2005 in terms of accidents, spills, or improved personal health and States. These plans are ambitious in those areas over the next several As a major energy consumer, Dow is clear: Dow aims to become the and process safety incidents, among safety. too, and so they should be: as a major years. To this end, other divisions will also produces large quantities of world’s most respected chemical other factors. chemical company located in the provide assistance, and we will also greenhouse gas emissions. World- company. A view from the outside to Energy efficiency and conser- Netherlands Dow needs to think big. be developing and organizing specific wide, this amounts to approximately the inside; that is, from Dow’s neigh- Contributing to community vation Between 2005 and 2015, activities and initiatives. 40 million tons of carbon equivalent, bors, customers, investors, and com- success Dow sets specific goals Dow will reduce its energy intensity of which approximately 8 percent munity in the broadest sense, is very for all its sites designed to achieve by 25 percent per ton of product. Terneuzen’s targets 3. Improving energy efficiency is produced at the Terneuzen site. important. There is also the fact that acceptance in communities. Dow Terneuzen defined five sustaina- by 10 percent Although the reduction of these our world has changed dramatically. Addressing climate change bility goals for 2015 (2005 was used We have accomplished a great deal emissions requires substantial invest- Challenges such as climate change Product safety leadership By Between 2005 and 2015, Dow will as a reference year). in this area in recent years. Flaring ments, we also regard this target as and the management of finite energy 2015, Dow will have made all safety reduce the intensity of its own annual at the Terneuzen site was down 70 an opportunity to tap new markets or sources are more visible than ever. assessments of its products publicly greenhouse emissions by 2.5 percent 1. Reducing industrial percent from several years ago. This increase sales opportunities in exis- Dow believes that these ambitious available. per ton of product. The goal is to accidents by 75 percent is better for the environment, as the ting markets. In 2010, we made an targets will help us become the most reduce absolute emissions within the The target for the Terneuzen site, less is incinerated uses flares the assessment of which projects at the respected chemical company, the Development of sustainable company by 2025. measured in the number of accidents fewer carbon emissions are released. Benelux sites may still result in a sig-

best employer, the best neighboring chemistry By 2015, 10 percent for every 200,000 working hours, is The flare gas that is not incinerated is nificant reduction of CO2 emissions. company, the most attractive com- of Dow’s revenues must be derived higher than for Dow globally. This is now used to fuel the furnaces, which pany for investors, the best supplier from new or improved products that because Terneuzen’s accident rate is more efficient on top of everything 5. Helping to resolve world and – of course – deliver the best provide additional benefits related to has been exceptionally low in recent else. And the immediate environ- challenges products to our customers. sustainable chemistry. years. In order to continue to improve ment gets to benefit as well, as they A global solution for Dow is to make in this area, the behavioral programs experience less inconvenience from three major breakthroughs that could will be further developed over the noise and light. One of the key acti- potentially provide a solution to the next several years. Through these ons of Dow’s Terneuzen site in 2010 world’s challenges. As one of Dow’s programs, Dow makes its employees was the preparation of an Energy largest production sites worldwide, even more aware of the importance Efficiency Plan for the Dutch sites. Dow Terneuzen believes it can con- of workplace safety – this includes This plan describes the energy-saving tribute to this process. The reuse wearing personal protection devices projects that will be implemented in of wastewater by the Municipality and correctly handling procedures the coming years. Since Terneuzen of Terneuzen as industrial water – a and machines. This is part of the already gained a 20 percent efficiency project that has earned the company company’s attempt to further reduce yield during the period 1995 – 2005, several international industry awards the number of accidents. it will not be easy to achieve any – is an example of one area where

6 Dow Benelux Sustainability Report 2010 7 Sustainability in practice

we can make a difference. It is cur- Continuing to push Dow Terneuzen is working > Fewer emissions > The flexibag rently being investigated how this boundaries of VOC For the export of fluids, the Site project might be implemented more Is Dow on the right way? Yes. Although hard on achieving the 2015 At train 3 of the Dowlex plant in Logistics Chemicals department comprehensively, so that even more there is a lot of work still to be done, Terneuzen, the residual product of Dow’s Terneuzen site uses two water streams from Zeelandic Flan- we can establish, at the halfway sustainability targets with (i.e., non-reactive raw materials) traditional transportation methods: ders might be reused. mark, that a great deal has been ac- was released directly into the storage in ISO containers and complished, and that we can look smaller and larger projects atmosphere at the end of the storage in barrels that are sub- back at those achievements with production process (through vent sequently stacked inside a box Mexico Climate Summit satisfaction. The results have been from which Dow, local re- pipes on the silos), resulting in the container (the familiar rectangular A second climate summit was held in strong, in particular in terms of safety, emission of Volatile Organic Com- steel containers). The department Mexico at the end of 2010. Many of although the increase in the number sidents and customers all pounds (VOCs). In order to reduce recently also began using a more the 190 participating countries were of accidents at the Benelux sites these emissions and comply with sustainable technology: the flexi- relieved that this summit did produce from 3 in 2009 to 5 in 2010 shows stand to benefit. the stricter environmental regula- bag, which is a good alternative to some results, after the failed summit in us that safety is one area where we tions related to VOC emissions, a barrel containers. Copenhagen in 2009. The agreements need to be on the ball all the time. new emission reduction program The flexibag is a large flexible bag made by the countries in attendance It is important that we never lose was launched at Dowlex in mid-2009. made from the basic materials po- included the establishment of a focus. We also made significant pro- A closed pipe system was installed lyurethane and polyethylene. The green fund and the implementation gress in terms of climate and energy on top of the silos, which directs bag is hung inside the container of measures against deforestation. compared to 2005. In doing so, we the residual product from all silos and well stocked with product. The In addition, they made commitments need to remember that Dow is not to the furnace of the Dowlex plant. flexibag is designed mainly for the regarding the exchange of technology. the same company it was five years VOCs are no longer released into transportation of non-dangerous, As one of the world’s largest chemical ago. Whereas the focus used to be the atmosphere, and are used as liquid products such as beer, wine, companies, Dow feels responsible on productivity and efficiency, we are fuel for the furnace, which means coconut oil, and paint. One year for tackling the climate problem, currently more focused on growth we score on two points. The pro- ago, Dow’s Terneuzen site started and it used the Mexico conference in terms of the value we can add to ject was completed in February using flexibags for the transporta- to promote its innovative, energy- market segments and in our wide 2011. The reduction program has tion of polyol originating from the efficient products, including insulation range of products. Our message is: helped reduce VOC emissions by polyurethane plant. The direct car- materials and solar panels, and to yes, we can achieve these objectives. 20 to 30 percent. Dowlex operates bon yield related to this technology meet with key political and business Partly thanks to this continuous de- a total of three production trains. is due mainly to the amount of leaders. velopment of new technologies and At the end of 2012, a capacity product being shipped. A flexibag innovative products, we can continue increase is scheduled for train 3 can contain up to 23.5 tons of po- to push our boundaries. that will increase production by lyol. By way of comparison: an ISO approximately 20 percent. The fact container can hold 21 tons; a con- that the emissions remained at tainer with barrels can transport zero despite this extension is an a little less than 17 tons. Additio- excellent result. The emission- nally, the container can be refilled reduction project involves an on the way back with materials, investment of EUR 3 million. which means it need not return with empty barrels. This multi-flex technology is not new; however, Dow wanted to prevent the risk of leaks as much as possible. With the materials used having been impro- ved so significantly, Dow has been taking full advantage of these new benefits. There have been no leaka- ges at the Terneuzen site since the flexibag system was implemented.

8 Dow Benelux Sustainability Report 2010 9 > PEOPLE

People are our best ambassadors

In February 2010, the Business Process Services Center (BPSC) was Employees At year-end 2010 Dow BPSC Accidents The number of officially opened. The BPSC is a new company with an all-new business Dow employed 1,959 people at its accidents at Dow Benelux in 2010 structure that is nevertheless the property of Dow. There are familiar Benelux facilities. The number of jobs Citizenship 2010 2010 was down from 2009. Compared to faces at the company, but above all many new faces. We also wit- at the various sites has remained the rest of the chemical industry the nessed the establishment of Styron Netherlands B.V., another new level or even increased. However, AlbaniaAlbanië 1 number is still low, but it remains company that operates separately from Dow. However, it is not com- the composition has changed BelgiumBelgië 367 7 below the target of zero accidents. pletely independent, due to the integrated production facilities on somewhat: 62 people from Dow are Bolivia 1 the site and, consequently, shared rules related to health, safety and currently employed by the BPSC. BulgariaBulgarije 1

the environment. All these ‘new families’ in the I-Park in Terneuzen Approximately 340 employees from Canada 1 14 resulted in the implementation of a diversified Human Resources (HR) the Netherlands and 45 employees China 1 12 policy in 2010 that was all about highlighting the specific needs and from Belgium were transferred to DenmarkDenemarken 1

requirements of these new companies. Styron, while around 90 employees GermanyDuitsland 12 1 7

transferred from the Kallo site in FranceFrankrijk 13 5 3 Belgium to Monument Chemicals. GreeceGriekenland 1 BPSC: boost for employment Facilitating growth The thereby ensuring that the focus Honduras 1 06 07 08 09 10 11 12 13 14 15 At its official start the BPSC employed emphasis for the period 2011-2015 on new talent will be permanent Locations IrelandIerland 2 approximately 120 people, 90 of will be on growth. Dow Terneuzen rather than occasional. The current India 4 1 whom were new hires. The new intends to hire more than 300 strong relationships with strategic Delfzijl 84 IndonesiaIndonesië 1 administrative center provides high- new employees over the next five universities, universities of applied Terneuzen 1.574 Iran 1 quality support services to Dow and years. Meanwhile, we are seeing sciences, and regional schools in Home office workers NL 32 ItalyItalië 13 joint ventures of the company across another new development: the the Netherlands and Belgium will Japan 1 Europe. The center’s responsibilities shortage of technically skilled be further improved in order to be Totaal Netherlands 1.690 LuxembourgLuxemburg 1 include making payments to suppliers, people in the job market. In order to able to recruit the most talented MoroccoMarokko 3 planning the storage of stocks, trans- counter this shortage and be able graduates. In the coming years we Brussels 5 Mexico 1 1 portation to and from customers, to achieve the required growth, the will focus on recruiting people whose Edegem 93 NetherlandsNederland 1427 42 and product documentation such as HR department will be devoting talents make them the right fit for the Zwijndrecht 7 Pakistan 3 health and safety regulations. The time in the immediate future to company – they will be able to further Tessenderlo 109 Panama 1 arrival of the BPSC provided a much- developing a more consistent job facilitate Dow’s transformation. Tertre 43 PolandPolen 3 1 needed boost for employment in the marketing strategy, both in the Our current employees play a key Home office workers B 12 Portugal 3 Zeelandic Flanders region. The Centre Netherlands and internationally. In role in this process, being the best RussiaRusland 1 now employs around 300 people. The recruiting new employees, Dow ambassadors Dow could have and Total Belgium 269 SerbiaServië 1 BPSC was relocated to a new building will focus in particular on ongoing being able like no other to pass on SpainSpanje 12 1 in the I-Park. campaigns online and in social media, the Dow message. Total Benelux region 1.959 Thailand 1 TurkeyTurkije 2 1 Diversity Dow Terneuzen and the UnitedVerenigd Kingdom Koninkrijk 13 2 new BPSC employ people from 35 UnitedVerenigde States Staten 3 1 different countries. South-AfricaZuid-Afrika 1 South-KoreaZuid-Korea 1 SwedenZweden 2

TOTAAL 1897 62

The 62 employees of the BPSC were former Dow employees.

10 Dow Benelux ... PEOPLE Sustainability Report 2010 11 Health and Safety Everyone in the right place

EH&S (short for “Environment, Health & Safety”) is a key acronym at With Dow always on the lookout for new talent (particularly technical Dow. When it comes to health and safety, the company simply aims talent), it makes sense that, as one of the largest industrial employers for its employees to be able to return home healthily and safely at the in Zeeland, the company aims to take a leading role in regional coope- end of each working day. ration with other companies in order to improve access to technical education.

Personal safety We fell just and so on. Another important part BRZO Safety Report revised short of the target for personal safety of preventing incidents is reporting and redrafted In 1976 an accident Technasium classroom Dow Diversity pays off Organizations escape chair designed to transport in 2010. At Dow Benelux a total of on and investigating near-incidents. occurred in the Italian town of Seveso has been investing substantially benefit from employees who have the disabled downstairs quickly and five accidents occurred: four at the ‘Near-incidents’ are situations and during which the toxic substance in regional technical education, different points of view and are creative. safely in the event of an emergency. Terneuzen site and one at the Delfzijl events that could potentially lead dioxin was released. Although there including vocational education. We therefore foster a culture of The number of ledges and fringes site. The following accidents were to process safety incidents. By were no victims, many local residents Scholengemeenschap De Rede in diversity by employing men and in the building has been reduced involved in Terneuzen: fracture of the investigating these near-incidents later experienced health problems. Terneuzen received a contribution women from different educational to a minimum in order to prevent left thumb caused by contact with more closely, we can make our plants This accident prompted new European in 2010 to set up a new classroom backgrounds, different nationalities, the accumulation of dust, and the a drill (this was the only accident even safer without needing to learn legislation aimed at preventing and in the technasium, a technical high and different socioeconomic back- partitions between workstations that was followed by a period of from an actual accident. In 2010, the controlling these types of incidents school. Technasium schools give grounds. Dow is committed to absorb noise, which is favorable absence); a cut in the finger, a broken number of near-accidents reported involving hazardous substances. students the opportunity to combine employee diversity, as is reflected in for those with hearing difficulties. arm caused by a fall and a broken was up 30% from the previous year. The Major Accidents (Risks) Decree theory with practice and experiment its Diversity & Inclusion (D&I) policy. DEN Benelux has set a number of ankle caused by a fall from the stairs. Dow is extremely pleased with this of 1999 (Dutch acronym: BRZO) is with technology, allowing them to This policy is based on the conviction objectives for the coming years. One At the Delfzijl site, an employee fell result, as it shows the commitment based on these regulations. Under discover that working in technology that people with disabilities can of these objectives is to share the off a tank container. The main risk of all our employees in this area. the decree, companies are required can be fun and exciting. In the make a valuable contribution to experiences of co-workers in order would therefore appear to be in to describe all aspects of their safety coming years, Dow will remain the organization. For this purpose, to learn from them. In 2010, the staff day-to-day work performed by people. Working on behavior By aiming system in a Work Safety Report. committed to maintaining good Dow is making every effort to make magazine Jouw Dow and the Benelux In 2011, the safety campaigns will for zero accidents, Dow fosters and At Dow Terneuzen, more than 25 educational facilities in the region. workstations accessible and to intranet site published a number therefore urge employees to increase cherishes a culture in which safety employees from various departments As part of these efforts, the Edu- support employees with disabilities. of accounts from employees with their safety awareness even further, is a permanent value – not just today worked on the report for more than cation Initiative Group (EIG) was These employees are united in the disabilities. These accounts showed particularly during “routine” work. or during the course of a specific two years, and ten copies of the report established at the end of 2009. This Disability Employee Network (DEN), that they make an effort every day Dow’s target for 2011 is a maximum project, but always. “Drive to Zero” were submitted to the Province of group is responsible for coordinating which was established in 2010. Since to perform their best and that they of 0.12 accidents at the Benelux sites is the name given to Dow’s global Zeeland at the end of April 2010. Dow initiatives related to education, the DEN was founded, Dow has been are accustomed to coming up with for every 200,000 working hours. EH&S initiatives. On 1 March 2010 training, and accessibility in technical increasingly involved in creating creative solutions to problems they a new, more personal Drive to Zero Strong results The average rate education. specially adapted workstations, encounter on a daily basis. Process Safety Dow also aims campaign was launched: “Drive of absenteeism in the Netherlands as exemplified by the new BPSC to prevent process safety incidents. to zero – I commit.” The Safety was 4.45 percent in 2010. At Dow’s Commitment Each year, all Dow in Terneuzen. This building is Only one incident occurred at the Behavior Observation Program is an Dutch sites, this rate has not exceeded employees are given the opportunity wheelchair-accessible and features Benelux sites in 2010. The incident example of a program specifically 3.5 percent for the past 15 years, to participate in the global Employee special lavatories for the disabled involved the accidental release of designed to encourage employees which is an excellent result. The Satisfaction Survey. Dow Benelux and an elevator. Like the Edegem light hydrocarbons after a valve at to point out safe and unsafe behavior wellbeing of employees at Dow’s would like to achieve a higher site, Dow Terneuzen has acquired an one of the plants at the Terneuzen to each other. In 2009, Dow set Terneuzen and Delfzijl sites is tested score in employee commitment site became defective. Other than out to update the program. Four annually using the wellbeing-stress- and inclusion, and the continued the environmental impact of this departments at the Terneuzen site prevention program. After one year, development of the company’s release, there were no other effects. participated in a pilot project. The the participation rate for this program Diversity & Inclusion policy should Dow has a detailed program in place update resulted in a number of is back at the former level of 70 help facilitate this. to prevent process safety incidents, changes. For example, new training percent. By way of comparison: the including an extensive preventive materials became available in 2010, rate for 2009 was still 62 percent. maintenance and inspection program, including a video instructing employees The average wellbeing score was design standards and procedures for how to inform others of unsafe 70 percent, which is around the changes to existing systems and for behavior and a video on receiving same level as last year. new systems, training programs for feedback. maintenance and operational staff,

12 Dow Benelux ... PEOPLE Sustainability Report 2010 13 Recommendation of the Works Council Growth and integration in practice

Dow’s transformation required considerable efforts from the Achieving growth and pro- 2010. This will give Edegem the manager for the two facilities. Dow Terneuzen Works Council. opportunity to become one of the Dow’s global EH&S targets have moting the integration of larger European CSC hubs. Five meanwhile been communicated of the ten new employees were to the former Rohm and Haas Following the Works Council electi- as well. Following these develop- the former Rohm and Haas transferred from the Customer employees as well. In addition, ons in late 2009, a new Council was ments, the Works Council held round- Interface Group (CIG) after it was the two staff associations have instituted on 1 January 2010. Of the table sessions with all employees employees – how does Dow announced that this department merged and the plants hold their 17 members of the Council, 8 also concerned, in order to learn about would be outsourced to the BPSC Works Council meetings together. served on the previous Council, while their concerns and questions in order accomplish this? in Terneuzen. We are very pleased that the integra- 9 members are new. In October to submit these to the management tion is truly starting to take shape. 2010, interim elections were held and subsequently provide the indivi- > Building a fully following the sale of Styron Corpo- duals involved with feedback in early > Integration of Rohm operational facility ration to Bain Capital. These many 2011. The Facility Management acti- and Haas; new jobs With the MDI and SBH plants (the > Recognition for changes presented a significant chal- vities for which we were previously in Edegem former Rohm and Haas facility) in health policy lenge to the members of the Works responsible have been outsourced In recent years Dow’s Edegem site Delfzijl each maintaining their own In May 2010, Dow Terneuzen was Council, partly due to the complex to a third party, ARCADIS AQUMEN lost a fair number of employees production processes, it is quite recognized and awarded for achie- issues involved. In 2010, the Works Facility Management (AAFM). Under due to the transfer of administra- a challenge to transform the two ving ‘Silver’ status on Dow’s Heal- Council issued a favorable recom- the contract, our partner AAFM will tive positions to other locations units into a single, fully operatio- thy Workplace Index. It achieved mendation regarding the sale of manage and coordinate all Facility in Europe and India. However, the nal entity. The current goal at the this milestone in its health policy Styron Corporation. Following the Management services for Dow’s addition of 20 new employees in Delfzijl site is to overcome these thanks in part to the fact that all sale, around 350 employees were Benelux sites. These services include 2010 has revitalized the site. differences and find similarities. Dow’s Benelux sites have been transferred to Styron from Dow and the maintenance of buildings, labs The increase is mainly the result A great deal has been accomplished smoke-free since 1 January 2010. 50 contractors, subject to the same and roads, along with catering and of the integration of ten former since the acquisition of the SBH The Healthy Workplace Index con- or equivalent employee benefits and cleaning services. The small number employees of Rohm and Haas plant. The first step was to imple- sists of a number of factors that working conditions regulations. Plans of Dow employees who were em- (ROH), the US chemical company ment Dow’s operating processes. together determine how a particular to outsource the central maintenance ployed in the Facility Management that Dow acquired in 2009. A large This came as something of a shock site scores in terms of health. The facilities and, in 2013, relocate the department have all been transferred number of employees are physi- to the Rohm and Haas employees, objective is to achieve the highest other central maintenance groups to to AFFM. As before, the Works Council cally present at the Edegem site, who were accustomed to their degree of health and productivity, the Maintenance Value Park to be issued a favorable recommendation while they also have the oppor- company’s somewhat hierarchic as well as to prevent and reduce established were disclosed in 2010 for this move. tunity to work from home inter- structure and often rigid style of health risks. The index also in- mittently. As a way of welcoming consultation. In contrast, Dow cludes participation in the health new employees and promoting works with empowered teams, survey, the creation of a healthy integration, the two companies where employee self-reliance and work environment, the availability initially exchanged information team independence are a given. of healthy food in the company about their activities on a monthly We no longer take detailed mi- restaurant, and attitudes and policy basis. This allowed them to share nutes during meetings; instead, with regard to smoking. The imple- knowledge and experience, and we work on the basis of a list of mentation of the smoking ban was ensured a smooth and efficient action items. The complexity of the controversial, and was preceded by integration. The initiative was so various systems and tools used many heated discussions. Never- much appreciated by all parties led us to recertify to Lloyds ISO theless, Dow stuck to its guns and involved that these meetings con- 9000 – this will allow both plants gave smokers eighteen months to tinue to be scheduled on a regular to further optimize the process become accustomed to the idea basis. Furthermore, the staff of the within the same time frame. The and find a solution. Those who Customer Services Center (CSC) in plants are already working closely wanted to quit smoking received Edegem was expanded: ten new together in a number of areas. For assistance and support from the people joined, many of whom are example, the head of the Mainte- occupational health and safety employed in the Home and Per- nance department is responsible service. sonal Care business, which was for maintenance at both plants, centralized in Edegem in October while there is also a single EH&S

14 Dow Benelux ... PEOPLE Sustainability Report 2010 15 > ENVIRONMENT

Delivering on our promises Number of environmental Contribution to the greenhouse incidents 18 environmental effect The contribution of Dow incidents (defined as emissions or Terneuzen to the greenhouse effect How would we like the world to look 10 years from now? And what role spills in excess of 50 kilos) occurred is expressed in kilotons of carbon might Dow play in this scenario? These are just some of the questions at Dow’s Terneuzen site in 2010. dioxide equivalents (CDEs). One CDE we ask ourselves at Dow. And that is by no means all – we then trans- is equal to the effect of the emission late our answers to those questions into ambitious 10-year objectives of 1 kilogram of carbon dioxide.

and communicate them to the outside world. This is because we feel 42 that people should hold us to those promises; we want to show that we’re not afraid to take on a commitment. We don’t make things easy 23 20 18 3.214 16 for ourselves, either: we choose our goals in such a way that we must 3.183 3.141

make significant efforts to achieve them. 2.874 2.604

06 07 08 09 10 11 12 13 14 15 Results at Dow and Styron The positives… When we review …and the negatives A disap- A lot can happen in a decade. For the results of the Terneuzen site, we pointing aspect has been the result 06 07 08 09 10 11 12 13 14 15 example, the global financial and eco- can conclude that we were able to of the waste content of wastewater Number of external nomic crisis that took hold at the end benefit in a number of ways from the flowing into the Western Scheldt complaints The Terneuzen of 2008 caused production volumes positive effects of several substantial estuary: this content increased for site did not receive any external Waste content of wastewater at our plants to decline in 2009. Two investments. the second consecutive year. Efforts complaints in 2010. flowing into the Scheldt years later, the majority of our plants For one, we again made significant to discharge less freshwater into estuary The disposal of are operating at full capacity again, progress in 2010 with regard to the the estuary and absorb as little fresh wastewater from the Terneuzen site resulting in both higher volumes and release of priority emissions, including water as possible again did not 9 into the Scheldt estuary is expressed higher emissions. During the chal- ethylene oxide (EO) and benzene. produce the desired result in 2010. in resident equivalents, where one lenging period, we decided to adhere This is a direct result of the conver- The amount of waste from a number resident equivalent is equal to the to the strategy we had implemented sion of the EO plant and the closure of plants has varied greatly; in some biological oxygen consumption of earlier: transforming our company of the Ethyl-Benzene 3 and Styrene 3 cases it was substantial, making the the substances contained in the 1 1 into a high-quality, multifaceted che- plants in 2009. In 2010 we saw an in- quality of the wastewater unsuited 0 0 wastewater of a single resident mical company focused on growth. crease in greenhouse gas emissions, for reuse on a number of occasions, 06 07 08 09 10 11 12 13 14 15 during one 24-hour period. This resulted in the integration and including carbon dioxide. This is mainly as a result of which it needed to eventual sale of the styrene, polycar- the result of the economic recovery, be dumped. While the natural bonate, and latex chains. These were which caused production capacity purification system did perform well, transferred to Styron Netherlands to increase sharply from 2009. The it was unable to deliver the required 17.009 16.911

B.V., which has continued operations long-term goal of the Terneuzen site quality effluent to facilitate reuse. 16.571 16.499 in the I-Park. Both these companies to reduce greenhouse gas emissions The waste content of the overflow have continued to operate under the by 10 percent was achieved despite points during extreme rainfall was 15.082 same environmental permit (Wm- this increase: these emissions were a factor in increasing overall waste vergunning) following the break-up. down 12 percent from 2005. content. Dow expects to achieve The following pages include a report better results in 2011, as it intends 06 07 08 09 10 11 12 13 14 15 on the environmental performances to tackle these problems at the of Dow and Styron. source. Several studies and projects have already been launched for this purpose.

16 Dow Benelux ... ENVIRONMENT Sustainability Report 2010 17 Environmental performance in the I-Park

The I-Park in Terneuzen continues to improve its environmental Volatile organic compounds Waste In 2010, Dow and Styron Soil Soil in the I-Park in Terneuzen performance, with several of the 2015 sustainability goals having (VOCs) The company did not reduce combined produced approximately has been contaminated in the past, already been achieved. The company remains committed to achieving its VOC emissions (i.e., substances 63,000 tons of waste – this figure and the company has been actively all the targets, for which it will expend considerable effort over the next released through release points, includes waste streams processed cleaning up the site since 2005. As several years. We have included an overview below. torches, the sealing of stopcocks both onsite and offsite. Although on part of the agreed outline remediation and pumps, etc.), showing, rather, the face of it this represents only a plan, a number of technologies are an increase in these emissions by modest improvement from 2009, currently being implemented in order

Energy performance Energy Greenhouse gases In 2010, NOX emissions Nitrogen oxide 12 percent compared to 2009. when the site produced 66,000 tons to further improve these cleaning efficiency improved slightly in 2010 Dow released 8 percent more carbon emissions in the I-Park in 2010 Styron’s emissions increased as of waste, due to the increase in efforts. (For more information, please from the previous year, due mainly dioxide than in 2009. Styron’s carbon were up slightly from 2009, also as well, which was primarily the result production volumes we can be proud see page 20) Due to the increased to the larger number of people emissions were also up from the a result of the sustained economic of increased production volumes. of this result. The more noteworthy focus on soil-protection measures

employed in the plants. In relation to previous year: by approximately recovery. These NOX emissions However, current emission levels contributions by Dow included the and because new product spills the 2015 goals, energy performance 15 percent. At both companies, must be reduced, as they are a are down 28 percent from 2005, reduction of flare-drum waste and are immediately cleaned up, every remains slightly below the projected the increase in carbon emissions major factor in determining the which means the 2015 target of a the reduction in sludge disposal by effective cleaning effort results annual improvement of 1.0 percent, is the direct result of an increase Terneuzen site’s contribution to 30 percent decrease is nearly met. the water purification system. Styron in a decline in accumulated soil despite the closure of the Ethyl- in production levels. Compared to controlling acidification problems. We expect better results for 2011 reduced its waste production as well, contamination and, by extension, Benzene 3 and Styrene 3 plants and the reference year 2005, absolute In the coming years (that is, up to as a result of the reduction in silo mainly due to the reduced amount in an improvement of soil quality. despite recent projects, such as the emissions declined by 12 percent. 2015), the old LHC 1 furnaces will emissions at the Dowlex plant. of waste released by the EB 4 and

expansion of the polyurethane plant In fall 2011, train 4 of the LDPE plant be fitted with LowNox incinerators. (see page 9) Performance is set to Styrene 4 plants via the LHC 2 torch. and the conversion of the EO plant. at the Terneuzen site will be converted (The first furnace was already further improve in 2012 due to the in order to increase its processing equipped with such an incinerator elimination of the Regenox unit from Wastewater In 2010, the amount capacity for ethylene and start pro- in 2010). Initial measurements have the EO plant, which is scheduled for of waste disposed by Dow and

ducing a wider variety of products, shown significant reductions in NOX late 2011. Styron into the Western Scheldt while maintaining the current energy emissions. The conversion of the old was at the highest level since 2005, consumption levels. Other projects furnaces involves a total investment Priority emissions Both Dow and which was disappointing. However, on the site include the installation of roughly EUR 20 million. Styron showed a strong performance the decommissioning of the EB 3 of a new tank; the renewal of the in the emission of the “priority plant marked the elimination of a pipework; and the installation of new chemicals” EO and benzene, which consistent, direct discharge flow. grout pumps and capacitor banks. in 2010 were down 24 percent from Both companies are committed to The latter are installed to recover 2009. Compared to 2005, the decline tackling this problem at the source heat in order to produce our own con- is a staggering 55 percent, thereby and to more effectively controlling densate. Many of these adjustments greatly exceeding the 2015 target of the biological purification system. will play a key role in reducing carbon 50 percent. This main reason for this emissions at Dow Terneuzen. result was the conversion of the EO- EG plant into an EO plant.

18 Dow Benelux ... ENVIRONMENT Sustainability Report 2010 19 Innovation in practice

Dow is always developing > Nature’s cleaners The consultancy and engineering planning, nature, and water condi- nies that use the substance in the possibilities of alcohols as a raw The Bodemsanering (Soil Remedi- firm Tauw has been assisting Dow tions. During the second stage of manufacture of end products; or material. Dow Brazil is currently new technologies that make ation) department is dedicated to with this experiment. the study, water supply and water consumers. These communications growing sugarcane for the pro- cleaning pieces of land that have demand will be analyzed. The pro- are conducted by means of the duction of bio-based polyethylene. work easier, more efficient become contaminated over the > Less dependent on ject has received financial support data sheet (Material Safety Data Another example is the extraction years at Dow sites worldwide. Soil freshwater from the EC03 grant program of Sheet) for each substance, to which of castor oil (a vegetable oil that is and more environmentally can be cleaned up in a number of The water project, for which Dow the Province of Zeeland. a sheet showing the exposure sce- sometimes referred to as “miracle ways, including through excavation, uses domestic wastewater dischar- narios is attached. This is a requi- oil”) from beans. Chemical modifi- friendly. As part of these ef- groundwater extraction, and purifi- ged in Terneuzen on a large scale, > First stage of rement for all producers of che- cation makes it possible to convert cation, or through natural erosion. is under continuous development. REACH successfully mical substances. All companies this oil into eco-friendly lubricating forts, the company works In 2010, Dow was the first chemical Dow is currently focusing mainly completed – including Dow Terneuzen – must oil. This project is currently at the company in the Netherlands to per- on optimizing streams and reuse, REACH is the system for the re- subsequently establish whether testing stage, as “green” alterna- in partnership with the best form a test using a new method, an effort that requires continuous gistration, evaluation, and autho- the use of the substance and the tives to these processes must pro- known as phytoremediation. This attention. In 2010, the sewage rization of chemical substances conditions for use correspond to duce the same result as the regular specialists – both in-house process involves using willows treatment plant implemented a produced in, or imported into, the those contained in the safety data versions. Research at the Terneuzen to prevent shallow organic soil membrane bioreactor. Wastewa- European Union. This European sheet. The procedures for this site focuses mainly on reducing and external – to develop contamination. A total of 33 young ter pollution is decomposed by regulation came into effect on 1 method will be developed and im- the energy consumption of the willows were planted on a plot of bacteria inside the reactor, while June 2007. Over the past three plemented in 2011. The Terneuzen naphtha crackers, since lower new applications and im- land (40 by 60 meters) on the Ter- the use of ultrafiltration membra- years, hundreds of Dow employ- site created a database containing energy consumption means both neuzen site. Through their roots, nes prevents that bacteria and ees worldwide have worked hard safety data sheets in 2010, which reduced costs and reduced carbon plement new technologies, these trees release oxygen and sludge components are discharged on completing the first stage of might be used for this purpose. emissions. Dow also investigates a sugar into the soil, which ensures along with the purified water. Two REACH: the registration of all che- This database is accessible to all more sustainable way of producing all as part of its initiative to that both the soil and the ground- objectives are achieved by this mical substances produced and employees through the corporate Polyethylene. Another example water become clean again through process: a) the system can pro- imported by Dow’s European sites Intranet. Product safety has always is an improvement process at the achieve its 2015 targets. organic processes. Our colleagues cess a larger amount of water and in quantities in excess of 1,000 been a key priority for Dow, and Dowlex plant. This involves inves- at Dow in the United States and b) the water is of a higher quality. tons per year. Approximately 250 as part of the REACH program all tigating the use of a new molecule Canada have more than 10 years of Dow has been instrumental in the substances are involved altogether. safety assessments were conver- in order to neutralize acids. This experience with this method, which implementation of the reactor, and A chemical safety assessment was ted into product safety documents. would lead to both less waste and they have implemented successfully. consumes this water from Evides. prepared for each of these subs- This means that REACH is fully in less corrosion in the pipes, thereby The company expects to be able The membrane bioreactor ensu- tances, where it was considered line with Dow’s global sustainability resulting in a superior end product to accurately assess the results of res that Dow is even less depen- whether the substance was “hazar- target of making all safety assess- and a longer lifespan for the plants. the test in a little more than three dent on the scarce water from the dous” (which applies to approxi- ments of its products publicly ac- However, it is clear that these types years’ time. It will accomplish this Biesbosch nature reserve. The mately two-thirds of the substances cessible by 2015. of research projects tend to be by taking air, soil, and groundwa- company also continues to search registered.) If this question is ans- complex and therefore time-con- ter samples and comparing them for new freshwater sources in wered in the affirmative, the risks > Use of sustainable suming, and that the investigation to the values of previous samples. Zeelandic Flanders. In conjunction of exposure are established, and raw materials into the use of sustainable raw ma- In addition, a foil was attached to with Evides, the Water Board, and measures are identified that must Dow’s production volume increased terials involves more than simply the base of the trees, which means Zeeland University of Applied Sci- be implemented in order to reduce markedly in 2010, and the company choosing one alternative over the they are unable to absorb rain- ences, Dow launched a feasibility those risks. All this information is intends to continue this increase other. Instead, the new alternatives water and will allow their roots to study 18 months ago into the pos- subsequently recorded in exposure over the next several years. Over mainly represent an effective ad- grow towards the groundwater. sibility of making this wastewater scenarios included in the Chemical the longer term, this means that dition to the existing ones. As a result, both the groundwater and rainwater reusable for industry Safety Report. This first stage of Dow will need to partially convert and the soil will be cleaned more and agriculture after filtering and this process was completed in late to other raw materials than the effectively, which is expected to treatment. The first stage of this November 2010. The final step of current fossil fuels, such as oil and result in cleaner soil. By comparing study has now been completed. A the REACH process is communica- gas. For this purpose, the Research the samples taken at this site with number of layers were identified in tion with the users – these may be & Development (R&D) department other, related samples, it is pos- the Kanaalzone area that provide the manufacturers that process the at the Terneuzen site has been sible to determine the actual effect information on the condition of the semi-finished products produced working on several projects, one of the willows on soil remediation. soil, desiccation, town and country by Dow into end products; compa- of which involves exploring the

20 Dow Benelux ... ENVIRONMENT Sustainability Report 2010 21 > ECONOMY

Room for new investment Dow’s global results

In 2010 we sold one of our Belgian sites, a decision that was part of Since Dow Benelux is an integrated part of The Dow Chemical Company, Dow’s portfolio management strategy of selling off non-strategic divi- the Benelux operations are closely linked with those of the global Dow sions. This has created room for new investment in Terneuzen, both Group. The performance of the various divisions can best be assessed onsite and in the region. on the basis of the consolidated results of the group as a whole.

Sale of Dow’s Kallo site The Room for social initiatives Financial results of The Dow Chemical Key indicators for Dow Benelux (mln $) sale of Dow Haltermann Custom Dow’s Terneuzen site has long played Company and its subsidiaries (overview of Processing was completed on a part in improving the quality of consolidated results, mln $) ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 1 June 2010. On 1 April, the its living environment, including by company reached agreement with supporting initiatives and projects 31-dec.-2009 31-dec.-2010 Capital investments 44 96 126 183 146 71 the Indianapolis-based company through a financial contribution from Monument Chemicals, Inc. regarding the donation budget. Dow spends Net revenue 44.875 53.674 Depreciation and 155 156 163 173 174 175 the acquisition of all the shares in the an average of around EUR 300,000 Net profit (mld $) 0,3 2,3 amortization Haltermann Custom Processing site a year on donations. A substantial Net income 336 1.970 Expenditures in the 88 133 155 202 156 154 and the associated business in the portion of this budget is earmarked R&D expenses 1.492 1.660 Zeeland-Flanders region Belgian town of Kallo. Dow’s decision for strategic projects (many of which was prompted by the fact that the are long-term projects) that improve Expenditure (mln $) Kallo operations were not sufficiently the quality of life. One organization Sales (per geographical area, mln $) ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 in line with the new strategy. The Dow has been supporting for many Kallo site is part of the Haltermann years now is Stichting het Zeeuwse 31-dec.-2009 31-dec.-2010 Contractors 29 32** 46 57 56 53 Custom Processing Group, which Landschap, which is dedicated to Salaries 165 173 194 217 190 159 processes specialty chemicals on nature preservation in the Province United States 15.257 17.497 Donations* 0,5 0,4 0,4 0,4 0,2 0,3 behalf of its clients. In mid-2006, of Zeeland. Another portion of the Europe, Middle-East 14.834 18.464 Total amount paid 65 97 128 130 98 102 the Kallo site also began producing budget is allocated to meet requests and Africa in taxes biodiesel. The sale of the site marked for smaller contributions and Rest of the world 14.784 17.713 the end of the nine years during donations, including the organization Production (mln tons) which Haltermann was part of Dow of events, anniversaries, festivals ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 Benelux. and the purchase of new materials. Regional Expenditure Dow is one of the leading One of these donations was provided companies in the Benelux countries, and the Terneuzen Production volume in 7,8 7,9 8,2 6,9 6,0 5,7 to Stichting Wonen en Psychiatrie, site in particular, with its 18 plants, more than 1,500 the Benelux region Zeeuwse Gronden at the end of employees and hundreds of contractors, maintains a 2010. This organization provides strong presence in the region. This is evidenced by many integrated care to people with long- related activities initiated by third parties, as well as by *2005 including anniversary donations term mental disabilities. The donation active communications with the regional community **Four years ago, in incorrect numer was provided here was used to fund the acquisition through Dow’s donations and Community Advisory Panel. of a multifunctional bus; this bus is currently used by the Zeeuwse Gronden home improvement team, allowing them to help their clients perform useful work during the day.

22 Dow Benelux ... ECONOMY Sustainability Report 2010 23 Dow Terneuzen ready for the new Dow Made in Terneuzen

Setting goals both gives an organization direction and provides clarity. Success is achieved through > Core Composite > Specialty Polyols This is important to employees, in order to ensure that everyone is Styrofoam® Mattresses can roughly be divided working towards the same goals, but also for other stakeholders such a combination of factors: a Core Composite Styrofoam® is into three categories: traditional as neighbors, clients and investors. Dow’s 2015 goals give direction a highly refined version of the mattresses, the slightly harder kind to all the company’s sites worldwide. In 2010, Dow’s Terneuzen site product must meet the cus- standard IB-2 insulation materials (made from hard foam), and soft, determined how it would achieve these global objectives and what normally produced in the Terneuzen Tempur-like mattresses (viscoelastic). its priorities were in that process. This resulted in the Terneuzen Site tomer’s needs, which means Styrofoam® plant. The plates can The Polyurethane plant in Terneuzen Strategy 2011-2015. have a maximum width of 0.1 already supplied standard polyols it must be of a high quality, to 0.3 millimeters (the standard to the Belgian-based mattress width is 2 millimeters), must be manufacturer Polypreen for the In achieving these targets, the Making a difference together Generating growth be delivered in time and in fully dust-free, and may not be production of traditional mat- Terneuzen site intends to go as far Another target for the coming years is In order to continue playing a key damaged. Separate packaging was tresses. However, Polypreen also as it can. The world around us is to hire more than 300 new employees. economic role in the future, Dow’s the agreed quantities. Even created for transportation purpo- produces hard mattresses using changing rapidly, which means that In recruiting these new people, Dow Terneuzen site must continue to ses. The customer turns the three special polyols, and it turned out achievements may vary significantly will be focusing on diversity in terms grow. This may be accomplished by more so than in the past, plates into panels and covers them the company was looking for an from one year to the next. At the of sex, age, and nationality, as well investing in the existing plants, in order with a layer of plastic on each side. additional supplier of polyol for the end of the process, all parties must as making sure that the new workers to ensure that they can continue to Dow Terneuzen is developing The panels are used for plastic production of harder foams. That have done all they could to succeed, are a good fit for the company. Do perform at the highest level, and by frames, refrigerated trucks, offices, is when Dow entered the picture, and Dow must have found the most they support Dow’s goals and can aiming for the construction of at least customized specialties. and homes. The existing machi- offering its services. In early 2010, effective solutions, both on behalf of they help achieve those goals? After one new plant. The expansion of the nes were altered in a number of Polypreen tested the substances and together with the client. all, Dow’s success depends on its site will be further facilitated by con- ways to facilitate the production of various polyol producers in its people. Making a profit is essential cepts such as the Maintenance Value of the new material. In addition, laboratories, and after an in-depth Responsible care for a company’s raison d’être, and Park, the Business Process Services the finishing equipment must also industrial screening process it Dow’s Terneuzen site sets the in order to make a profit a company Center, and the I-Park. The profits be properly cleaned in order to was announced that Dow was the standard when it comes to sustaina- must maintain stable operations. But generated by these operations are prevent the build-up of dust, and favorite. Polypreen then went on to bility and safety. We aim to reduce our whereas we used to talk of “ope- subsequently invested in new the blades are changed on a regu- perform the production tests, and environmental footprint by reducing rational reliability,” we now refer to semi-finished products and products lar basis, since the surface must once again Dow’s polyol turned the impact of our non-operational “highly reliable organizations.” Not that can provide solutions to global be ultra-smooth. The production out to meet all the requirements. activities. The main objective for only the plants must have reliable problems. Terneuzen continues to be of Core Composite Styrofoam® On 1 August 2010, Dow became a Dow’s Terneuzen site continues to operations – this reliability applies to Dow’s leading European site when it generates a large amount of waste, qualified supplier for Polypreen. be zero accidents, and we can only the site as a whole. comes to Research & Development. which is not a problem, as it is all The excellent quality of the product achieve this target if we are all aware recycled. For example, the waste was obviously a key factor, along of it and believe in it. The key is to is used to manufacture new plates with the commercial aspect and foster the appropriate safety culture or serves as additional protection the strong relationship between – a culture that is represented by our during transportation. Core Com- the two companies. The short dis- people. posite Styrofoam® is the result tance between the PU plant in of close cooperation between the Terneuzen (which in 2009 became client and the plant. The Terneuzen the largest of its kind in the world) site currently produces more than and Polypreen, based in the Belgian 20,000 cubic meters of the material town of Lommel, also worked to per year. the company’s advantage. In addi- tion to traditional polyols, Dow has also begun supplying a number of specialty types. The market for bulk products is increasingly under pressure, and these specialties allow Dow to make the difference.

24 Dow Benelux ... ECONOMY Sustainability Report 2010 25 > I-PARK

Styron Netherlands B.V.: our successful neighbor Keyword: growth Styron has Good step Styron is pleased energetically embarked on its first with the steps it has taken towards full calendar year as an independent independence, particularly due to the On Friday 18 June 2010, the employees of Styron Netherlands B.V. company. The company’s top priority new opportunities this opens up for celebrated the official launch of their new company. The arrival of Styron for 2011 is to stabilize the Styron the company’s further development. to Dow’s Terneuzen site also marked a turning point in the site’s history: organization. When the company was The new situation of two companies for the first time in the 45 years since its establishment Dow has established, it was agreed that Dow sharing an integrated site shows that expanded its operations beyond the plant site. Styron’s newly inde- would support Styron in setting up clear commitments can result in a pendent status represents a significant step in creating the Terneuzen its own services, including Human successful partnership agreement. Industrial Park, which can accommodate multiple companies. During Resources and Finance. Styron has the last three quarters of 2010, Styron and Dow implemented the also been exploring opportunities agreements they made earlier to build an effective partnership. to further increase the value of its business, both by expanding its current businesses and by extending Clear agreements Unlike the related to Health, Safety and the New opportunities The the current product range. The BPSC, Styron is the first non-Dow Environment, ensuring that all transition to independent status of construction of a new latex plant occupant of the I-Park that maintains parties involved are aware of the the business units in the Benelux in China and a new rubber plant operational activities. Styron commitments made. A number of countries involved the transfer of in Schopau, Germany should help Terneuzen includes the following agreements have been signed for around 340 Dow employees at facilitate this. business units and products: day-to-day activities, for example the Terneuzen site and 45 Dow In autumn 2011, the Terneuzen site Styrenics Naturals, Compounding related to technical services and employees at the Tessenderlo will be investing heavily in further & Blends, Latex, Styrene, and the use of the buildings. In order site to Styron. These employees improving both its performance and Ethylbenzene. In addition, Styron also to ensure that the cooperation immediately showed that they the sustainability of the styrene plant. operates the IPG and Cumeen plants agreements are complied with, believed in the opportunities the new The investment involves a total of on behalf of Dow. In order to be two Relationship Managers were company has to offer. For example, nearly EUR 6 million. Another new successful on an integrated site such appointed: one for Dow and during the remaining months of 2010 development is that Styron will change as Dow Terneuzen, it is essential one for Styron. Additionally, a the company’s safety performance its name to ‘Trinseo’ in 2011. This for the two companies to cooperate Governance Board ensures effective was exceptional, with only a single decision was prompted by the fact smoothly, as the companies depend cooperation between the various product spill at the Terneuzen site. that the current name is too closely on each other for the delivery of raw companies within the Industrial The effective programs operated by associated with the company’s po- materials and services. Dow and Park concept. The members of the Dow related to Health, Safety and the lystyrene business, when in fact its Styron are currently working under Governance Board include Dieter Environment will be continued under operations are much more compre- a single environment permit. This Schnepel, Dow Terneuzen Site the Styron banner. hensive than that. The new name means that Styron has committed to Leader, and Frans Kempenaars, communicates that the company is the standards set by Dow, which in Director of Styron Netherlands B.V. involved in a wide range of activities, some cases are more stringent than The same cooperation structures products, and technologies, as well the government’s requirements. and agreements are in force at as highlighting its aim to continue to A document is currently being Styron’s site in the Belgian town of grow and innovate. prepared containing all the rules Tessenderlo.

26 Dow Benelux ... I-PARK Sustainability Report 2010 27 Maintenance Value Park Terneuzen Cooperation Schedule In order to facilitate the continuous The design stage was completed in Cooperation as a driver of growth flow of innovations aimed at impro- 2011, with construction slated to be- ving the effectiveness and efficiency gin in 2012. Until that time, the of maintenance processes, coope- zoning plan needs to be amended The Maintenance Value Park Terneuzen (MVP) has a clear objective: ration is essential – both within and and the plans need to be developed to facilitate cooperation and innovation in order to further improve the outside the company. This is the only in detail. The Maintenance Value Park reliability of the processing industry in the Kanaalzone region. This is way for innovations to be created in Terneuzen hopes to welcome its important, as smarter, more efficient and more cost-effective mainte- even faster and more efficiently. In first occupants in 2013. nance is vital in order to remain competitive. The first stage of the MVP addition to providing expertise and is scheduled to be completed in the next few years. services to Dow, the maintenance companies located in the MVP will also be serving other industrial proces- Value Case The Maintenance services. The Value Case, which Expertise and innovation sing companies, including Cargill and Value Park Terneuzen (MVP) is a place was funded in part by the European Centre The Expertise and Yara. This will increase the synergy where entrepreneurs, educational Regional Development Fund (ERDF) Innovation Centre (KI<) will be the between the various participants, as institutions and government agencies as part of the OP-Zuid project and main player in the park. The Centre well as making them more competi- work together to provide education in part by contributions from various will deal in a practical way with a tive. The Western European proces- and innovation and increase regional companies, brought about number of issues relevant to the sing industry tends to be far more efficiency and economic growth. a cultural shift. Companies and maintenance sector, because it is established than the newer industries The initiative launched by Dow, Yara, institutions – both inside and outside more efficient to work on solutions that have emerged in the Far East. Cargill, and Zeeland Seaports was the region – which had previously together, rather than separately. Smart maintenance helps maintain investigated in 2009 for economic been cautious, began to show a more The Expertise and Innovation reliable production facilities for the feasibility, funded by a ‘Pieken definite interest in the park. More Centre focuses on three issues: processing industry in this area. Ano- in de Delta’ grant. The feasibility than 20 companies are currently technology, operating processes, and ther one of the MVP’s objectives is study showed that a large number involved in the design of the MVP. cooperation. The Centre, working to interest more people in working in of maintenance companies and In 2010, it was also assessed how in partnership with companies and technology in general and the mainte- educational institutions in the region cooperation can actually result in educational institutions, explores nance industry in particular. The park are interested in the establishment of innovation and creation; this included these issues for subjects it can will therefore have a modern look and the MVP. In 2010, the next step was an investigation of trends in this area tackle. The first of these topics feel: a place designed to attract young completed in drafting a Value Case, in other regions. Meetings were held have already been disclosed: people, featuring modern buildings a document that describes how the with educational institutions such cooperation between customers and training programs that make use MVP can add value for stakeholders. as Zeeland University of Applied and suppliers, condition-based of the latest resources and tech- The case clearly shows that the MVP Sciences and initiatives such as NV maintenance, working at heights, nologies. Students can apply their differs from other contractor parks Economische Impuls Zeeland and industrial cleaning, digitization, and newfound knowledge immediately at in that it maintains its own expertise the Dutch Institute World Class staff availability. The companies set one of the maintenance companies and innovation center, operates Maintenance. This study clearly the priorities, while the role of the located in the park. joint business projects, provides showed what resources are required Expertise and Innovation Center is practical training and education, to turn the MVP into a successful to support and facilitate. The result and manages shared facilities and company. of their efforts might be a new technology, a new operating process or a new form of collaboration.

28 Dow Benelux ... I-PARK Sustainability Report 2010 29 Also in 2010...

2010: the Year of Biodiversity the largest fluid cracker complex in companies and the main Zeeland- Vision For Dow in Terneuzen, Values The United Nations designated 2010 the world, making Dow Terneuzen based educational institutions were this means as the International Year of Biodiversity one of the main drivers of economic represented at the information To be the most profitable and respected > Integrity – an excellent opportunity for Dow to development of the Dutch chemical market. science-driven chemical company in Dow in Terneuzen is and will be the > Respect for people raise awareness among its employ- industry in general and in Zeelandic the world. most strategic site for Plastics and > Protecting our planet ees and local residents of the Flanders in particular. Disclosure of water Hydrocarbons. We will further grow importance of biodiversity in the innovation sites Dow is not in performance and market facing region. Several years ago, Dow’s Dik Schipper: Plant Manager the only company to deal with water Mission business. By excellence in EH&S, Strategic Themes Terneuzen site commissioned a flora of the Year 2010 Dik Schipper innovatively: several organizations reliability, productivity, quality and and fauna survey, which showed that has been the manager of the LHC are working together to increase To passionately innovate what is innovative partnerships, our com- > Reliability and financial success the Terneuzen operations have complex in Terneuzen since 2001. safety and the quality of life in the essential to human progress by pro- mitted and talented employees in > Responsible Care virtually no negative impact on the At the Deltavisie 2010 conference, Zuidwestelijke Delta area. Problems viding sustainable solutions to our manufacturing, services and R&D add > People plant and animal species occurring in an event for industrial companies in are handled in an innovative way, customers. significantly to Dow’s value creation > Growth Zeelandic Flanders. In fact, some the Rhine/Scheldt estuary, he was with examples of such innovations and growth. new species have settled in the area, elected Plant Manager of the Year. including flood-catchment dikes, including the peregrine falcon and Dik was praised by the jury for his the re-entry of salt water, or reuse. several protected species of orchids. excellent technical and organizational The Province of Zeeland has Thanks to the survey, Dow knows insights and his coaching leadership designated thirteen innovation sites exactly where a particular species style. As part of this election – an in its operating area, having installed occurs on its site, and it tries to be as initiative of the trade journal Petrochem information signs to make them more mindful of this as possible. For and the Association for the Dutch accessible and more identifiable example, the grass is not cut during Chemical Industry – the organization for locals and tourists alike. The brooding season, while other patches each year looks for participants who water reuse project launched by of grass are kept longer if possible. have made a significant improvement Dow, Evides and Waterschap Furthermore, the Terneuzen site has in the past year in an innovative way Scheldestromen (Scheldestromen drafted a Biodiversity Action Plan that relates to health, safety, the Water Board) was equipped with a (BAP), and in November 2010 Dow, environment, productivity, and quality. panel in two locations. One of these along with several other Zeeland- Having won the competition, Dik panels is located at the source, based organizations, signed an will be representing the processing namely the sewage treatment plant agreement to preserve – and, where industry to the outside world for the of the Terneuzen Water Board. The possible, increase – biodiversity in entire year. other panel is located near Spuikom. Zeeland. On 7 December, Deputy Frans Maintenance Day on 18 Hamelink officially unveiled the new Our crackers turn 40! The September The national kickoff panels. All panels feature beautiful LHC-1 (LHC is an acronym for Light of Maintenance Day (Dag van photographs of the area in question, Hydro Carbons) complex on Dow’s het Onderhoud) took place at the along with a description of the Terneuzen site was launched in 1970. Terneuzen site on 18 September. innovation and a QR code. Interested It marked the beginning of a success Young people between the ages of visitors can scan the code using their story that has continued to this day. 8 and 28 were given the opportunity mobile phones with internet access The LHC complex, which includes to discover innovations in technology to read more about the innovation in three naphtha crackers, has been a in general and in maintenance in question. leading example at Dow for 40 years particular. Dow and Verenigde Dow now. All crackers operate extremely Partners (VDP) used a number of efficiently, which means at a low activities to show what makes cost, with relatively few breakdowns, the maintenance profession so and good safety and environmental interesting, exciting, and fun. All results. The LHC complex is currently the major regional maintenance

30 Dow Benelux ... ALSO IN 2010 Sustainability Report 2010 31 Dow Benelux B.V. PO Box 48 4530 AA Terneuzen, the Netherlands Tel. +31 (0)115 67 1234 www.dowbenelux.com

Final Editing Public Affairs Department Edited by Lievens Communicatie, Middelburg Design studioRaven, Groede Images Christophe Vander Eecken, Gent (B), Dow en Duo Foto, Heikant Printed by Drukkerij Bareman, Terneuzen

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