Dow Corning
Encyclopedia
Dow Corning is a multinational corporation
headquartered in Midland, Michigan
, USA
. Dow Corning specializes in silicon
and silicone
-based technology, offering more than 7,000 products and services. Dow Corning is an equally-owned joint venture
of Dow Chemical and Corning.
sealants, adhesives, silicone mold-making rubbers, lubricants, release agents for cookware, sound-absorbing silicone, leather treatment, skin care lotion, preceramic polymers for high temperature applications, liquid silicone drycleaning solvent, High purity silicon wafers for use in semi-conductors and solar panels, as well as silicone waxes.
from aircraft electrical systems at high altitudes made high-altitude flight all but impossible. Dr. Shailer Bass developed Dow Corning's first product, a simple silicone grease
(Dow Corning #4 Compound) that solved the problem. Dow Corning was formally established in 1943 specifically to explore the potential of silicones. Dr. E.C. Sullivan was named president and Dr. William R. Collings was named general manager in 1943. Dr. Collings later became president from 1954 until 1962.
A large, majority-owned subsidiary of Dow Corning Corporation is the Hemlock Semiconductor Corporation
. Founded in the 1960s before the computer revolution, it is still one of the world's leading manufacturers of high-purity polycrystalline silicon which is sold in varying purity grades for use in both semiconductor
silicon wafer manufacture and photovoltaics
applications as solar cells.
Dow Corning needed to defend their position as a provider of innovative silicon-based materials and solutions (which, for the most part, came bundled and priced together). They knew they needed to find a better way to meet customers’ needs exactly.
It was time for a game-changing strategy – one that would simultaneously:
• Meet customer needs for efficient, cost-effective silicone products
• Empower the company to continue to innovate and grow the silicones market overall
They decided the best way to take advantage of the potential in the mature market segment, without detracting from the value of the Dow Corning offering, would be to create a separate brand. This brand, the XIAMETER® brand, would offer a clearly defined value proposition and set of products via a web-enabled platform to provide competitive pricing.
The product set would be a wide range of standard silicone
products generally thought of as commodities by customers. These standard products would be – and still are – manufactured by Dow Corning. The tone would be “no frills” – just straightforward business terms and conditions, high-quality products, a reliable supply, and market-driven prices.
The global drive to find greater efficiencies in business through a web-enabled business model worked in their favor. It helped them maximize productivity and reduced human error, while keeping costs competitive for customers. Rather than cannibalizing the Dow Corning brand as some feared, the XIAMETER brand made it stronger. The two brands worked in harmony, helping increase Dow Corning’s financial results dramatically during this period.
To this day, no other silicone company in the world has been able to replicate Dow Corning’s
two-brand strategy.
lawsuit
s claimed that Dow Corning's silicone breast implants caused systemic health problems. The claims first centered around breast cancer
, and then migrated to a range of autoimmune disease
s, including lupus
, rheumatoid arthritis
and various neurological problems. This led to numerous lawsuits beginning in 1984 and culminating in a 1998 multi-billion dollar class action
settlement. As a result, Dow Corning was in bankruptcy
protection for nine years, ending in June 2004.
A number of large, independent reviews of the scientific literature, including the U.S. Institute of Medicine
, have subsequently found that silicone breast implants do not appear to cause breast cancers or any identifiable systemic disease.
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
headquartered in Midland, Michigan
Midland, Michigan
Midland is a city in the U.S. state of Michigan in the Tri-Cities region of the state. It is the county seat of Midland County. The city's population was 41,863 as of the 2010 census. It is the principal city of the Midland Micropolitan Statistical Area....
, USA
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Dow Corning specializes in silicon
Silicon
Silicon is a chemical element with the symbol Si and atomic number 14. A tetravalent metalloid, it is less reactive than its chemical analog carbon, the nonmetal directly above it in the periodic table, but more reactive than germanium, the metalloid directly below it in the table...
and silicone
Silicone
Silicones are inert, synthetic compounds with a variety of forms and uses. Typically heat-resistant and rubber-like, they are used in sealants, adhesives, lubricants, medical applications , cookware, and insulation....
-based technology, offering more than 7,000 products and services. Dow Corning is an equally-owned joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
of Dow Chemical and Corning.
Products
Products developed over the years include siliconeSilicone
Silicones are inert, synthetic compounds with a variety of forms and uses. Typically heat-resistant and rubber-like, they are used in sealants, adhesives, lubricants, medical applications , cookware, and insulation....
sealants, adhesives, silicone mold-making rubbers, lubricants, release agents for cookware, sound-absorbing silicone, leather treatment, skin care lotion, preceramic polymers for high temperature applications, liquid silicone drycleaning solvent, High purity silicon wafers for use in semi-conductors and solar panels, as well as silicone waxes.
History
In 1942, moisture in aircraft engines and the formation of corona dischargeCorona discharge
In electricity, a corona discharge is an electrical discharge brought on by the ionization of a fluid surrounding a conductor that is electrically energized...
from aircraft electrical systems at high altitudes made high-altitude flight all but impossible. Dr. Shailer Bass developed Dow Corning's first product, a simple silicone grease
Silicone grease
Silicone grease is a waterproof grease made by combining a silicone oil with a thickener. Most commonly, the silicone oil is polydimethylsiloxane and the thickener is amorphous fumed silica...
(Dow Corning #4 Compound) that solved the problem. Dow Corning was formally established in 1943 specifically to explore the potential of silicones. Dr. E.C. Sullivan was named president and Dr. William R. Collings was named general manager in 1943. Dr. Collings later became president from 1954 until 1962.
A large, majority-owned subsidiary of Dow Corning Corporation is the Hemlock Semiconductor Corporation
Hemlock Semiconductor Corporation
Hemlock Semiconductor Corporation, named after Hemlock, Michigan, is the largest producer of polysilicon in the United States. It is a subsidiary of Dow Corning and was founded in 1961....
. Founded in the 1960s before the computer revolution, it is still one of the world's leading manufacturers of high-purity polycrystalline silicon which is sold in varying purity grades for use in both semiconductor
Semiconductor
A semiconductor is a material with electrical conductivity due to electron flow intermediate in magnitude between that of a conductor and an insulator. This means a conductivity roughly in the range of 103 to 10−8 siemens per centimeter...
silicon wafer manufacture and photovoltaics
Photovoltaics
Photovoltaics is a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that exhibit the photovoltaic effect. Photovoltaic power generation employs solar panels composed of a number of solar cells containing a photovoltaic material...
applications as solar cells.
The XIAMETER® Brand
In 2000, Dow Corning was facing an increasing number of competitors around the world that were getting into the standard silicones business. At the same time, for a growing customer segment called “priceseekers” who needed little or no service attached to the products, price had become the driving force.Dow Corning needed to defend their position as a provider of innovative silicon-based materials and solutions (which, for the most part, came bundled and priced together). They knew they needed to find a better way to meet customers’ needs exactly.
It was time for a game-changing strategy – one that would simultaneously:
• Meet customer needs for efficient, cost-effective silicone products
• Empower the company to continue to innovate and grow the silicones market overall
They decided the best way to take advantage of the potential in the mature market segment, without detracting from the value of the Dow Corning offering, would be to create a separate brand. This brand, the XIAMETER® brand, would offer a clearly defined value proposition and set of products via a web-enabled platform to provide competitive pricing.
The product set would be a wide range of standard silicone
Silicone
Silicones are inert, synthetic compounds with a variety of forms and uses. Typically heat-resistant and rubber-like, they are used in sealants, adhesives, lubricants, medical applications , cookware, and insulation....
products generally thought of as commodities by customers. These standard products would be – and still are – manufactured by Dow Corning. The tone would be “no frills” – just straightforward business terms and conditions, high-quality products, a reliable supply, and market-driven prices.
The global drive to find greater efficiencies in business through a web-enabled business model worked in their favor. It helped them maximize productivity and reduced human error, while keeping costs competitive for customers. Rather than cannibalizing the Dow Corning brand as some feared, the XIAMETER brand made it stronger. The two brands worked in harmony, helping increase Dow Corning’s financial results dramatically during this period.
To this day, no other silicone company in the world has been able to replicate Dow Corning’s
two-brand strategy.
Breast implant controversy
Throughout the 1980s and 1990s, class-actionClass action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
s claimed that Dow Corning's silicone breast implants caused systemic health problems. The claims first centered around breast cancer
Breast cancer
Breast cancer is cancer originating from breast tissue, most commonly from the inner lining of milk ducts or the lobules that supply the ducts with milk. Cancers originating from ducts are known as ductal carcinomas; those originating from lobules are known as lobular carcinomas...
, and then migrated to a range of autoimmune disease
Autoimmunity
Autoimmunity is the failure of an organism to recognize its own constituent parts as self, which allows an immune response against its own cells and tissues. Any disease that results from such an aberrant immune response is termed an autoimmune disease...
s, including lupus
Systemic lupus erythematosus
Systemic lupus erythematosus , often abbreviated to SLE or lupus, is a systemic autoimmune disease that can affect any part of the body. As occurs in other autoimmune diseases, the immune system attacks the body's cells and tissue, resulting in inflammation and tissue damage...
, rheumatoid arthritis
Rheumatoid arthritis
Rheumatoid arthritis is a chronic, systemic inflammatory disorder that may affect many tissues and organs, but principally attacks synovial joints. The process produces an inflammatory response of the synovium secondary to hyperplasia of synovial cells, excess synovial fluid, and the development...
and various neurological problems. This led to numerous lawsuits beginning in 1984 and culminating in a 1998 multi-billion dollar class action
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
settlement. As a result, Dow Corning was in bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
protection for nine years, ending in June 2004.
A number of large, independent reviews of the scientific literature, including the U.S. Institute of Medicine
Institute of Medicine
The Institute of Medicine is a not-for-profit, non-governmental American organization founded in 1970, under the congressional charter of the National Academy of Sciences...
, have subsequently found that silicone breast implants do not appear to cause breast cancers or any identifiable systemic disease.