Herbert Henry Dow, an American chemical industrialist, founded the Dow Chemical Company in 1897, marking the beginning of a significant journey in the chemical industry. Dow's innovative approach to chemical processes, particularly bromine extraction, laid the foundation for what would become a major player in the global chemical market. This article delves into the early history of Dow Chemical, highlighting the key milestones and challenges faced
by its founder.
Herbert Henry Dow's Early Innovations
Herbert Henry Dow was born in Belleville, Ontario, in 1866, and his family moved to Cleveland, Ohio, in 1878. Dow's interest in chemistry led him to the Case School of Applied Science, where he began researching the chemical composition of brines. His discovery that brine samples from Canton, Ohio, and Midland, Michigan, were rich in bromine set the stage for his future endeavors. Bromine was a valuable ingredient in medicines and the photographic industry, making Dow's discovery particularly significant.
In 1889, Dow received his first patent for a cost-effective bromine extraction process. Despite initial setbacks, including bankruptcy, Dow's associates recognized his potential and helped him establish the Midland Chemical Company in 1890. By 1891, Dow had developed the Dow process, using electrolysis to oxidize bromide to bromine, further solidifying his reputation as an innovator.
The Formation of Dow Chemical Company
Herbert Dow's ambition extended beyond bromine extraction. He sought to expand his research into electrolysis to produce other chemicals, such as chlorine and caustic soda. However, his financial backers at Midland Chemical Company did not support his vision, leading to his dismissal. Undeterred, Dow continued his research and secured funding from Cleveland backers, including family friends and former classmates.
In 1895, Dow founded the Dow Process Company in Massillon, Ohio, to develop his production mechanisms. The following year, he returned to Midland and established the Dow Chemical Company as the successor to the Dow Process Company. With 57 original stockholders, Dow Chemical quickly acquired the Midland Chemical Company, setting the stage for its future growth.
Breaking Monopolies and Expanding Horizons
Dow Chemical's innovative approach allowed it to produce bromine cheaply, challenging the German bromine cartel, Deutsche Bromkonvention, which had a near-monopoly on the market. In 1904, Dow defied the cartel by exporting bromine to England at a lower price. The German cartel retaliated by dumping bromine in the U.S. market at a loss, but Dow's strategic repackaging and exportation of the bromine to Europe proved successful.
Dow's tactics confused the cartel, leading them to suspect internal violations of their price-fixing agreement. Ultimately, Dow Chemical's resilience and strategic maneuvers allowed it to thrive, paving the way for its expansion into other chemical products and solidifying its position as a leader in the industry.
