An interview with Tony Frencham: Dow Footwear Solutions seeks market intimacy

Rubber World, April, 2008

RW: Dow Footwear Solutions debuted at this year's K-Show. How is the company's footwear business changing? Why was the change needed?

Frencham: In the past, a brand owner or a footwear manufacturer has had to deal with suppliers that are expert in only one family of materials. Dow Footwear Solutions (DFS) represents the entire breadth of Dow offerings, from polyurethanes to polyolefins. We then focus on the footwear market itself, rather than on particular products or solutions. We look at a client's need first, and then choose from a full set of solutions, such as products, systems and services, to deliver value to that market. With a variety of options, we are able to offer value-added products and solutions throughout the entire footwear value chain, and better meet the evolving needs of our partners and customers.

RW: What materials do you supply the footwear industry, and into what footwear applications?

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Frencham: Building on our traditional capabilities in material science, we have developed a global portfolio of materials and systems for key components in the footwear industry, from outsoles, midsoles and footbeds through to innovative molded components.

The business is based on two technology platforms, including: a family of polyurethane and thermoplastic systems based on Dow's Voralast Soling Systems; and series of non-system products including Dow's Pellethane TPU and Engage POE ranges.

At K 2007 and in other trade events, we showcased the following three new product series:

Voralast R series renewable content soling systems are based on natural oil polyols which reduce energy consumption and greenhouse gas emissions during production. Timberland announced in July that it has adopted the R series for its Mion Spring 2008 line of outdoor footwear to deliver a durable, water-resistant polyurethane sole that improves the sustainability of the manufacturing process.

Voralast G series polyurethane series is a new polyurethane system for the production of midsoles, focused on the production of athletic and trekking shoes where lightness is a key requirement for consumer comfort. Stringent commercialization trials for Voralast GS show that products maintain their performance characteristics, even at very low densities in the 270/310 gr/l range.

Pellethane low-yellow-index grade TPU elastomers have been developed to offer best-in-class color performance through a range of ether and ester grades at various hardness levels. A combination of clarity, reduced need for UV stabilization, abrasion resistance, tensile strength, improved weatherability and easy processability makes the Pellethane low-yellow-index TPUs ideally suited to complex footwear applications.

RW: How large of a market are these sections of the footwear industry?

Frencham: This year, approximately 20 billion pairs of shoes were produced globally. That's a lot of soling material.

RW: How has this business changed in the last couple of years?

Frencham: One of the key changes has been in the brand owners' need to find material and processing solutions that simultaneously help them innovate to keep ahead of consumers' tastes, maintain the comfort and appeal that are so important to modern footwear, and also constantly manage the cost of development, processing and manufacturing. This can only be achieved by a truly holistic approach by brand owners and their strategic business partners.

RW: How do you see the present day business climate both domestically and internationally, and what do you see as the biggest challenges facing Dow Footwear Solutions?

Frencham: Overall, we see the footwear market continuing to grow strongly, with demand driven by the emerging developing economies, and of course new fashions in the developed economies. We are seeing a soft retail sector in the U.S. associated with the weakening economy there, but elsewhere demand remains strong. We expect that 2008 will see a higher than usual demand for sports shoes as is typical in an Olympics year.

RW: What is the emphasis of Dow R&D efforts in footwear materials?

Frencham: Dow Footwear Solutions is focused on what is important to footwear manufacturers and brand owners; delivering comfortable, appealing and high performing shoes that provide lasting value. DFS is built on Dow's strong research and development capabilities in material science/material transformation, as well as substantial market experience. We are committed to become a first-of-mind innovation partner to our customers.

The Voralast R polyurethane soling system is a good example of an innovative development that helps our value chain partners reduce their environmental footprint. The newest grade to be offered will be for polyurethane soling, and will be designated Voralast R. It contains natural oil polymers that reduce energy consumption and lower greenhouse gas emissions during production, while still delivering the performance and superior comfort that consumers have come to expect.