Dow Reichhold Latex Venture Dissolving

Research Triangle, NC, Aug. 21, 2008--Dow Reichhold Specialty Latex, a joint venture of The Dow Chemical Co. and Research Triangle Park-based Reichhold Inc., said it will go out of business by the end of the year, according to the Triangle Business Journal.

Dow Reichhold will close its facilities in RTP; Cheswold, Del.; Penang, Malaysia; and Shanghai, China, eliminating 203 jobs.

Dow Reichhold makes latexes used in wide variety of products. Though raw materials costs for the joint venture have gone up this year, Masselle says Dow Reichhold will be shut down because “it no longer fit into our long-term strategy for Reichhold or for Dow.”

Dow plans to buy back the assets it contributed to the latex company when the joint venture was formed in 2002. When that sale closes, which is expected to be in the next 30 days, Dow will service the affected customers directly.