|12/04 08:47 DJ Dow Chem To End Distribution Pact With Ashland Unit >ASH|
DOW JONES NEWSWIRES
Ashland Inc. (ASH) said Dow Chemical Co. (DOW) plans to terminate, on March 1, its agreement with the company's Ashland Distribution unit for the distribution of Dow plastics in North America.
The Covington, Ky., chemical company said Monday that fiscal 2006 purchases under the agreement totaled $170 million, or about 5% of Ashland Distribution's materials purchases. Ashland Distribution also has a plastics distribution contract with Dow in Europe, under which it bought $60 million of plastics in fiscal 2006, which the company said "could at some point be impacted."
Ashland said it plans to "agressively pursue retention" of the customers affected by Dow's decision, with the support of its plastics manufacturer partners.
Ashland's shares closed Friday down 38 cents at $67.99, after reaching a 52- week high of $68.70 earlier in the session.
-Tom Rojas; 201-938-5400; AskNewswires@dowjones.com
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