The acquisition of the Dow acrylic monomer (acrylic acid) assets by Arkema will reduce the available suppliers of this critical raw material from four sources to three. This will reduce competition and lead to higher prices. Planned expansions have already been cancelled and market tightness is being predicted for late 2010 and 2011. Increased prices will ultimately be passed along to the consumer with no other alternative raw material available for the specific applications of this important monomer. With all three manufacturing sites located in the Gulf coast area, the market has already suffered from hurrican outages and occasionally from export priorities to support foreign based manufacturing. Fewer, more integrated suppliers of acrylic acid is not good for North American manufacturing companies attempting to source this material.
The Dow Chemical Company, Docket C-4243, Petition by Dow Chemical Company to Reopen and Modify Final Commission Decision and Order Regarding Rohm & Haas Acquisition #545315-00002
Bulk Chemical Services, LLC
The Dow Chemical Company, Docket C-4243, Petition by Dow Chemical Company to Reopen and Modify Final Commission Decision and Order Regarding Rohm & Haas Acquisition