FORIMMEDIATERELEASECONTACTSFebruary26,2003TracyCullen(703)402-6409MichelleMcKenna(202)427-6042DowLeaderSaysOutsourcingWillHelpSmallManufacturersSurviveEconomicStormNEWORLEANS—“Thecurrentconfluenceofnegativefactorsfacingthechemicalmanufacturingindustrycouldbecalled‘theperfectstorm,’”saidAndrewN.Liveris,presidentofDowChemicalCompany’sPerformanceChemicalsGroup,asheaddressedthephenomenonofoutsourcinginthechemicalandpharmaceuticalindustriesduringthekeynotepresentationatINFORMEX®2003,thepremiertradeshowforcustomchemicalmanufacturersandtheirclientsheldFebruary25-28attheMorialConventionCenter.“Thechemicalsectorhasnotbeenmakingmoney,andthisboatcannotbeallowedtosink,”saidLiveriswhopointedtolowindustrialproduction,highoperatingratesandhighnaturalgaspricesascontributingfactorstothecurrentstateofthechemicalandpharmaceuticalmanufacturingindustry.Liverisdescribedhowoutsourcingemergedasamajortrendinthechemicalandpharmaceuticalindustriesmorethanadecadeago.“Manycompaniesshiftedtheirstrategiestotakeadvantageoftheoutsourcingtrendandthevaluepropositionitwouldoffertocustomprocessors,”Liverisexplained.However,Liverisassertedthatseveralbarriershavepreventedthefulfillmentoftheoutsourcingpromise,andindustryleadershipisneededtorestoreinvestorconfidence.Tosurvivetoday’seconomicstorm,Liverissaidthatchemicalmanufacturersneedto:•Maintainspendingdiscipline,eveningoodtimes,•Continuetoreshapeportfoliosandconsolidate,and•Learnfromcustomershowtomeettheirneedsandhowtorebuildtheirconfidence.Stilloptimistic,Liverissaidthatwinnersinthechemicalindustrywillneedtobeagileandmaintainadistinctivecompetitiveadvantage.Withoutstrategicalliancesandcollaborationwiththelargercompanies,Liverispredictedthatmostsmallnicheplayerswillhaveadisadvantage.“Somesaythere’snogrowthleftinthechemicalindustry,butIdisagreewiththat,”Liverissaid.“Opportunitieslieahead,andwhatwilldistinguishsuccessful,value-creatingcompaniesinthefutureincludemoreefficientuseofcapacityandfocusedresourcesoninnovationratherthanmaintenance.”Liveris’careerhasspannedmanufacturing,sales,marketing,newbusinessdevelopmentandmanagement.FormedunderLiveris’leadershipin2000,PerformanceChemicalsbringstogetherspecialtychemicalbusinessesfromseveralrecentacquisitions,includingANGUSChemical,HampshireChemical,UnionCarbideandAscotPlc.INFORMEX®2003issponsoredbytheSyntheticOrganicChemicalManufacturersAssociation(SOCMA),theleadingtradeassociationservingthespecialty-batchandcustomchemicalindustry.Formoreinformationaboutthetradeshow,gotowww.informex.com.###SOCMAmembersmanufacturethousandsofproductsannually.Its300membercompanieshavemorethan2,000manufacturingsitesand100,000employees.VisitSOCMA’sonlinepressroomatwww.socma.org.
