Dow Automotive, a business unit of The Dow Chemical Company, announced today that it is consolidating its North American production of glass bonding adhesives, primers and sealers to a new, soon to be constructed facility in Midland, Michigan.

“In order to optimize efficiencies, we had to make some decisions to either implement site improvements at existing facilities or consider production consolidation,” stated George Hamilton, President, Dow Automotive. “Asset optimization reviews have determined that consolidation will maximize value for our customers and enable us to maintain our position as the world’s largest producer of adhesives and sealers for the transportation industry.”

To underscore its commitment to provide high quality products and services to the automotive industry, Dow Chemical is supporting the consolidation strategy with an investment of over $100 million to locate this new facility in the company’s hometown of Midland. The project also has been approved by the City of Midland and the Michigan Economic Development Corporation (MEDC).

“We’re very pleased to bring this project to Midland,” said Romeo Kreinberg, Senior Vice President, Plastics, Dow Chemical. “Dow has a long history with the automotive industry and we are happy that the demand for materials from Dow Automotive allows us to invest in new facilities and to keep jobs in Michigan.”

The two-phase project will begin in 2005 with site preparation, new construction and equipment installation to produce adhesives, primers and sealers. The site is expected to be fully operational by early 2007 and will employ 79 workers.

This consolidation of glass bonding adhesives, primers and sealers will result in the closure of Dow Automotive facilities in London, Ontario and Kankakee, Illinois, and the relocation of urethane and primer production from its Hillsdale, Michigan plant.

“We are happy that Dow’s investment allows us to keep manufacturing of these important technologies in Michigan – close to the industry we serve,” adds George Hamilton.

Phase Two will involve construction of a plant that will manufacture automotive filters. This facility will employ an additional 30 workers with start-up planned for late 2009.

Dow Automotive is a leading supplier of plastics, adhesives, sealants and other plastics-enhanced products for interior, exterior, under-the-hood, vehicle body structure and acoustical management applications. The organization serves global tier, OEM and aftermarket customers. With offices and application development centers around the world, Dow Automotive provides materials science expertise and comprehensive technical capabilities to its customers worldwide. For additional information about Dow Automotive products and services, visit www.dowautomotive.com.