The Dow Chemical Company has announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy.

On track to complete its goal of realizing US$4.5bn to US$6bn in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to US$7bn to US$8.5bn to be complete by mid-2016. Since 2013, the company has generated US$2.5bn in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.

“As part of our ongoing process to drive value through a best owner mindset and using economic value add as our lens, we are consistently looking across our portfolio to identify additional sources of long-term value creation and maximize the returns on the capital we invest,” said Andrew N. Liveris, chairman and chief executive officer. “Our focus on continuously and increasingly rewarding shareholders is at the core of every decision and action we take.”

Dow continues to assess opportunities to enhance the value created across its portfolio, including rationalising its position in major joint ventures and divesting Dow businesses that, while valuable, no longer align with Dow’s integration strategy.

In line with this strategy, and as announced earlier today, Dow plans to reduce its equity position in all of its Kuwait joint ventures, which will release capital for other strategic purposes including shareholder remuneration. The company also announced the signing of a definitive agreement for the divestiture of its ANGUS Chemical business for US$1.215bn in net proceeds.