Dow BioProducts Discontinues Production of WOODSTALK Products

Dow Chemical Canada Inc. (Dow Canada) announced that Dow BioProducts, a division of Dow Canada, will no longer operate and will cease manufacturing operations of WOODSTALK brand products from its plant in Elie, Manitoba, Canada by December 31, 2005.

In June 2001, Dow BioProducts was created through the acquisition of a majority of the assets of Isobord Enterprises and produced WOODSTALK, a more environmentally-friendly, high quality alternative to wood-based medium density fiberboard (MDF) and particle board.

While Dow BioProducts refined the manufacturing process and improved the quality of the product over the past five years, the demand in the marketplace for a high-quality, low VOC fiberboard product was not at a level high enough to generate the returns necessary to sustain the business. This, coupled with higher operating costs due to increased natural gas and oil prices and overall costs of doing business, made it ever more difficult to justify continued operation of the business and the plant.

The company’s top priority during the shutdown process is the safety of employees, the community and the environment. During the shutdown process, equipment and machinery will be decommissioned and any remaining materials will undergo safe treatment and disposal.

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contract news of 2005-11-18.

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