Dow ends plastics pact with Ashland

Dow Chemical will stop using Ashland as a plastics distributor in North America effective March 1, 2007. Ashland says Dow's decision involves plastics valued at more than $170 million annually, or 5% of its distribution business. And although Ashland's contract to distribute Dow plastics in Europe is unaffected, that agreement could end as well, affecting another $60 million in sales. Ted Harris, president of Ashland Distribution, says Ashland will "aggressively pursue retention of these customers" with plastics from other manufacturers. Dow says it hopes customers will continue to purchase Dow plastics through its other distributors, including Ravago and its Entec unit, Muehlstein, and PolyOne Distribution.