Dow Chemical Company

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Lore & Background

Herbert Henry Dow invented a new method of extracting bromine from brine in Midland, Michigan, and founded the company in 1897. Early on, Dow survived price-cutting attacks by British and German competitors by diversifying its product line and using tactics such as buying cheap German bromides and reselling them in Europe. During World War I, Dow supplied war materials previously imported from Germany, including magnesium for incendiary flares and phenol for explosives, and by 1918, 90 percent of its production was for the war effort. The company created its diamond logo during this period. After founder H. H. Dow's death in 1930 from cirrhosis of the liver, his son Willard Dow took over and led the company through the Great Depression with heavy investment in research. In the 1930s, Dow began producing plastic resins, including ethylcellulose in 1935 and polystyrene in 1937. During World War II, Dow became a strategic company, building its first plant in Freeport, Texas, in just eight months from 1940 to 1941 to produce magnesium from seawater. By 1942, Dow-operated plants produced 84 percent of the nation's magnesium output. Dow also supplied styrene for synthetic rubber—it was the only styrene producer in the United States—and produced plastics such as styrofoam and Saran for military use. Following Willard Dow's death in an airplane crash on March 31, 1949, Leland Doan became president and oversaw major diversification and expansion. Under Doan, employment more than doubled to 31,000 from 14,000, and sales soared to $890 million from $200 million. His son Ted Doan became president at age 40, integrated company branches, and set a goal of 10 percent annual earnings growth, with sales surpassing $1 billion in 1964. In 2015, Dow and fellow chemical company DuPont agreed to a corporate reorganization involving a merger and subsequent split into three entities. The plan commenced in 2017, when Dow and DuPont merged to form DowDuPont, and was finalized in April 2019, when the materials science division was spun off from DowDuPont and took the name of the Dow Chemical Company.

Reader's Guide

The Dow Chemical Company's significance lies in its transformation from a small bromine-extraction operation into one of the world's largest chemical producers. Its early history illustrates how a company can survive aggressive competition through innovation and diversification. The company's development of plastics, including ethylcellulose, polystyrene, and styrofoam, and its creation of Dow Corning in 1943 with Corning Glass Works for silicone products, highlight its contributions to materials science. The 2019 spin-off from DowDuPont marked a return to its independent identity, while its status as a member of the American Chemistry Council and its global presence in about 160 countries underscore its enduring influence in the chemical industry.

Did You Know?

• Dow was founded in 1897 by chemist Herbert Henry Dow, who invented a new method of extracting bromine from brine in Midland, Michigan.
• By 1918, 90 percent of Dow's production was geared toward the World War I effort, supplying materials like magnesium for incendiary flares and phenol for explosives.
• In 1942, Dow-operated plants produced 84 percent of the nation's magnesium output, critical for lightweight aircraft parts during World War II.
• Dow was the only styrene producer in the United States when World War II began, and it agreed to help the government produce synthetic rubber in 1942.
• The 1921 winner of the Indianapolis 500 used Dowmetal pistons in his vehicle, which were developed by Dow for more speed and better fuel efficiency.

Founding and Early Competitive Strategy

Herbert Henry Dow established his company in 1897 after devising a novel technique for pulling bromine out of underground brine deposits near Midland, Michigan. What began as a modest operation selling bleach and potassium bromide quickly grew—by 1902 the plant was churning out 72 tons of bleach daily. The young firm's first major test came when British manufacturers attempted to crush it through aggressive price-cutting. Dow matched their reductions, absorbing roughly $90,000 in lost revenue, but used the crisis as a catalyst to broaden its product portfolio. A more cunning episode followed in 1905, when German bromide producers flooded the U.S. market with cheap goods to block Dow's European expansion. Rather than fighting a head-on price battle, Dow purchased those very German products and reshipped them back across the Atlantic, effectively undercutting his rivals on their own turf. This early willingness to think laterally and diversify rapidly set a corporate tone that would persist for generations, and within two decades the firm had become a significant producer of agricultural chemicals, chlorine, phenol, dyestuffs, and magnesium metal.

Wartime Industrial Significance

Two world wars transformed Dow from a regional chemical supplier into a strategic pillar of American industrial capacity. During the First World War, the company stepped in to manufacture materials the United States had previously imported from Germany—magnesium for incendiary flares, monochlorobenzene and phenol for explosives, and bromine for medicines and tear gas. By 1918, ninety percent of its output was dedicated to the war effort, and it was during this period that the iconic diamond logo first appeared. The Second World War amplified that role dramatically. In just eight months between 1940 and 1941, Dow erected its Freeport, Texas facility to extract magnesium from seawater, and when Pearl Harbor fell, that plant became the nation's primary magnesium source. The government then demanded a doubling of capacity; Dow responded by building a second Texas plant in Velasco and adding two more sites on the shores of Lake Michigan and Lake Huron. In 1942, Dow-operated plants accounted for 84 percent of all U.S. magnesium output, a material critical to lightweight aircraft components. Simultaneously, as a wartime styrene producer, Dow helped launch the synthetic rubber program that kept American forces supplied when natural rubber access was cut off.

The DuPont Merger and Corporate Reorganization

By the mid-2010s, the chemical industry was undergoing a wave of consolidation, and Dow found itself at the center of one of its most ambitious deals. In 2015, Dow and DuPont agreed to a sweeping corporate reorganization: the two giants would first merge into a single entity called DowDuPont, then split into three independent companies. The merger took effect in 2017, and the separation was completed in April 2019, when the materials science division was carved out of DowDuPont and re-emerged under the Dow Chemical Company name. Today, that entity operates as the subsidiary of Dow Inc., a publicly traded holding company incorporated in Delaware. The reorganized Dow Chemical Company maintains a global footprint spanning roughly 160 countries and employs approximately 36,000 people. It ranks among the three largest chemical producers worldwide and is frequently described as the 'chemical companies' chemical company,' a nod to its core business of supplying raw materials and intermediates to other industries rather than selling finished goods to everyday consumers. The firm also holds membership in the American Chemistry Council, reinforcing its role in shaping U.S. chemical policy.

Legacy of Innovation and Product Diversification

From its earliest days, Dow built its identity around relentless product diversification and a heavy commitment to research. After surviving its first price wars, the company expanded into agricultural chemicals, chlorine, phenol, and magnesium metal within two decades of its founding. That magnesium expertise produced a memorable consumer-facing triumph: the Dowmetal pistons that powered the 1921 Indianapolis 500 winner, delivering greater speed and fuel efficiency to racing vehicles. When H. H. Dow died in 1930, his son Willard—just 33—assumed leadership and, notably, continued pouring resources into research and development even during the Great Depression. That investment paid off in the 1930s as Dow entered the plastics arena, producing ethylcellulose in 1935 and polystyrene in 1937, both of which grew into major business lines. The wartime years added further milestones: foamed polystyrene marketed as styrofoam, the Saran film later sold to households as Saran Wrap, and the 1943 joint venture with Corning Glass Works that created Dow Corning. That partnership, born from a need for high-altitude aircraft ignition-sealing compounds, went on to become the world's largest silicone producer, cementing Dow's legacy as a company that repeatedly turned military necessity into lasting civilian innovation.