BUSINESS to employ enzymes in the development of novel silicon-based specialties. The alliance, formed in October, calls for Dow Corning to pay Genencor up to $35 million during a two-year research phase, and included an up-front payment of $ 12 million. Anderson has high hopes for the alliance, which could, if successMARC S. REISCH, C&EN NORTHEAST NEWS BUREAU ful, lead to a full joint venture between OW CORNING HAS TAKEN A LICK"We used Chapter 11 as a time to reengi- the two companies. "There must be ening, but it keeps on ticking. neer our workflows,review our informa- zymes that can act as catalysts to help us Though operating under bank- tion technology (IT) capabilities, and now create new silicone materials," he says. ruptcy court protection for al- we are poised to pursue business," he says. "And that should certainly help us to most seven years, the company The company had planned a number of open new doors." has been quietly preparing for the day when major initiatives once it emerged from ThomasJ. Pekich, Genencor group vice it will once again operate without court bankruptcy to show the world it was back president for bioproducts, agrees: "We ensupervision. stronger than ever. "But we are not wait- vision many unique products from the marriage of silicon and biotechnology. Our Gary E. Anderson, chairman, president, ing any longer. We are rolling now" and chief executive officer of Dow CornFor example, last month's launch of intent is to build the alliance into a big ing—a joint venture of Dow Chemical and Xiameter— a brand name for high-volume business for both of us." glassmaker Corning—says he expects the silicon-based products sold via the Intercompany will emerge from bankruptcy re- net— "was planned to be a post-bankrupt- TO PRODUCE silicon-based products toorganization later this year or early next. cy launch," Anderson explains. The com- day takes a lot of energy, pressure, and catOnce it gets final court approval, the re- pany has invested more than $100 million alysts, Anderson explains. Y&. in the ocean, organization will provide $4.2 billion to in its IT infrastructure, in part to handle certain marine organisms create complex settle the claims of silicone gel breast im- demand from the Web-based order and in- silicon-based structures without the large plant recipients and creditors. Alarge num- formation system. industrial overhead that Dow Corning ber ofwomen contended that their im- — employs. "By combining Genencor's plants caused disease. *< expertise in enzymes with our ability to understand silicones, we should be Some attorneys representing women able to create some interesting and continue to object to the reorganizaunique materials," he says. tion plan and havefiledappeals. 'After Right now, the partners have their losing twice, you'd think the trial lawyers eye on "what we can do to enhance life would give up," Anderson says. "But and promote healing." Anderson sugthose lawyers have an opportunity to gests the alliance could bear early fruit try to go before the U.S. Supreme Court. and come up with a unique wound care It's a career-making opportunity We product. believe they will try, so we will at least have to go through the process." Dow Corning itself continues investing in research. R&D as a perCompany lawyers tell Anderson that centage of sales is at about 7%—comthe Supreme Court discards more than pared with the industry average of 95% of the cases that come before it. about 5%—though it may slip a point And because the case involves no unin 2002. "We were hiring scientists usual precedents or constitutional through the third quarter of 2000," questions, Anderson is confident that he says. "But in the past 18 months such an appeal is unlikely to further dewe've had a fairly tight control on head lay resolution of Dow Coming's case. count and we have been reducing it to While it struggled with the reordeal with the recession." ganization process, Dow Corning was However, Anderson, 56, a chemical quietly minding its p's and q's. Even as engineer and 26-year veteran of the it negotiated with attorneys, the firm NEW CHAPTER Anderson (right) with J. company, pledges to stay in place for a worked to keep itsfluids,elastomers, Donald Sheets, general manager of Xiameter, while longer. When he decides to and resins businesses profitable. The Dow Coming's new silicone e-business. "~ move on, his successor, "at this point," company had operating income of $57 million on $2.4 billion in sales last year. Thefirmhas taken other forward-look- is Executive Vice President Stephanie A. "Bankruptcy galvanized all our employees ing initiatives, too. Last fall it opened a Burns, 47, a Ph.D. organic chemist with a specialty in organosilicon. to focus their energy on preserving the en- 16,000-metric-ton-per-yearorganosilane For now, Anderson says, "I've made a terprise," Anderson says. 'And it helped us unit in Midland, Mich. The unit supplies to get a lot better focus on our customers, be- growing demand for afillerused in "green" personal commitment to get the comcause you know your customers are your tires, so called because they help improve pany out of Chapter 11 and to make sure key to survival." Anderson spoke with car fuel economy It also expanded silicone we are financially healthy. When I feel C&EN last month whenhe was inNewlfork intermediates capacity in Barry Wïles. And that is the situation, I will head out into City to launch an e-commerce initiative. it formed a novel alliance with Genencor the sunset." •
OPEN FOR BUSINESS Dow Corning has been minding its p's and q's and is now ready to emerge from bankruptcy
D
"Bankruptcy galvanized all our employees to focus their energy on preserving the enterprise."
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