Dow completes sale of flexible packaging adhesives business for US$150M

USA – Dow has finalized the sale of its flexible packaging laminating adhesives division to Arkema, a global leader in specialty materials, for US$150 million.

This divestiture, first announced in May 2024, includes five manufacturing facilities located in Italy, the U.S., and Mexico.

The sale encompasses solvent-based and solventless laminating adhesives and heat seal coating product lines.

The proceeds from this transaction will bolster Dow’s capital allocation plans, support growth strategies, and enhance long-term shareholder value.

Dow emphasized that this move aligns with its broader strategy to streamline its portfolio and strengthen its focus on high-growth, sustainable solutions.

“This divestiture is a strategic milestone reinforcing our commitment to innovation and growth,” said Karen S. Carter, President of Packaging & Specialty Plastics (P&SP) at Dow.

“It allows us to concentrate on our core strengths, delivering greater value to our customers and stakeholders.”

Despite the sale, Dow retains its water-based laminating adhesives, acrylic adhesives, and adhesive solutions businesses, which remain integral to its growth and sustainability agenda.

Leadership transition in Packaging & Specialty Plastics

Meanwhile, the company has announced some leadership changes. Keith Cleason has been appointed President of the Packaging & Specialty Plastics (P&SP) segment, succeeding Karen S. Carter, who was recently named Chief Operating Officer. Cleason will also oversee Dow’s operations in Latin America.

Cleason’s role will focus on driving growth, resource allocation, and advancing sustainability initiatives in line with Dow’s strategic objectives.

His extensive industry experience positions him well to lead the segment through this transformative phase.

“Keith’s strategic insight and proven leadership make him the ideal choice to steer P&SP forward,” Carter noted.

“His expertise will be instrumental in achieving our sustainability targets and maintaining our competitive edge.”

Cleason’s career at Dow began in 2001, with roles spanning global asset management, polyethylene business leadership, and strategic development.

His most recent position was Business Vice President for Olefins, Aromatics & Alternatives (OA&A), and Univation Technologies.

Farewell to industry veteran Jane Palmieri

Dow also announced the upcoming retirement of Jane Palmieri, President of the Industrial Intermediates & Infrastructure segment, effective March 31, 2025.

Palmieri has played a pivotal role in shaping Dow’s success over her 30-year tenure. She oversees a portfolio with annual sales exceeding US$16 billion and drives innovation across multiple business units.

Dow CEO Jim Fitterling praised Palmieri’s contributions, stating, “Jane’s visionary leadership and dedication have been instrumental in our growth. Her legacy of innovation and customer-centric strategies will continue to inspire our future endeavors.”

Palmieri’s leadership extended across Dow’s operations in Asia Pacific and Latin America and included roles in Dow Automotive, Dow Coating Solutions, and Dow Solar. She also serves on the Stanley Black & Decker board, highlighting her impact beyond the company.

With these strategic moves, Dow is poised for continued growth, innovation, and alignment with its sustainability and business goals.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.