Corning Inc of Corning, NY has announced that it will exchange its 50% interest in Dow Corning Corp for 100% of the stock of a newly-formed entity that will become a wholly-owned subsidiary of Corning Inc. The new entity will hold approximately 40% ownership in Hemlock Semiconductor Group and approximately US$4.8 billion in cash. Upon completion of the exchange, The Dow Chemical Co, an equal owner of Dow Corning since 1943, will assume 100% ownership of Dow Corning. Upon completion of the strategic realignment, Hemlock will be 40.25% owned by Corning through the new entity, 40.25% owned by Dow Corning Corp, and 19.5% owned by Shin-Etsu Handotai Co Ltd.
Wendell P Weeks, Cornings CEO, said, We are proud of Dow Cornings success, and pleased that our 72-year partnership will continue through our ownership in Hemlock Semiconductor. Today, however, Dow Cornings silicone business lies outside the technologies and manufacturing platforms core to our strategic framework.