MOSCOW (MRC) -- The Dow Chemical Company has announced that several key milestones have been reached with the company’s Plastics investments in the US Gulf Coast and Latin America, as per the company's press release.
The projects on the US Gulf Coast are nearing peak construction and remain on track and on-plan for start-up, with all site construction underway. When fully operational, Dow’s collective feedstock and plastics expansions on the US Gulf Coast are projected to deliver an estimated USD2.5 billion in EBITDA annually. In Bahia Blanca, Argentina, Dow plans to expand capacity and enhance production technologies and equipment of its polyethylene (PE) production units to support increased market demand in consumer and industrial films.
Thus, in Freeport, Texas, all engineering for the on-purpose propylene PDH project is complete and more than 50% of construction is complete. The project remains on track for start-up in mid-2015.
Dow’s previously announced world-scale ethylene production facility, which began construction on June 30, remains on track and on-plan for start-up in the first half of 2017. The facility, which has more than 65% of engineering and 5% of construction complete, will support market growth and derivative expansions of Dow’s industry leading Performance Plastics franchise.
For derivatives, Dow will expand its High Melt Index (HMI) AFFINITY, AFFINITY GA and ENGAGE brand polymer franchises in Freeport. These materials deliver stronger bonding in hot melt adhesives for packaging and hygiene markets, and enable lighter and more durable components for transportation. Building on Dow’s proprietary solution PE technology, the company will also expand its popular ELITE franchise which delivers enhanced durability and flexibility for food packaging, hygiene & medical, and industrial and consumer packaging markets. These high performance brands are powered by Dow's industry leading proprietary INSITE catalyst technology.
In Plaquemine, Louisiana, Dow will expand its NORDEL EPDM franchise with next generation technology. Also powered by INSITE, NORDEL EPDM provides the infrastructure, transportation, consumer durables, appliance and electrical and telecommunications markets with highly flexible, heat and chemical resistant polymers that deliver enhanced durability and long service life. Also in Plaquemine, Dow will expand its low density polyethylene (LDPE) family of high performance products like AGILITY that are faster to process, more stable and deliver improved optics for applications in flexible food packaging.
Besides, starting in 2015, Dow plans to expand capacity and enhance production technologies and equipment at its four PE production units - LDPE, Slurry, Gas Phase, Solution - in Bahia Blanca, Argentina. These investments will enable Dow to produce more high performance resins for flexible and rigid packaging applications to meet growing demand in Latin America.
The LDPE plant will be refurbished to enable production of resins for extrusion coating used in multiple packaging applications. The Slurry plant expansion will help drive growth of bimodal blow molding resins, which is currently in short supply in the region. The Gas Phase plant, which produces resins for geomembranes and pipes, will also be refurbished for improved operational performance. The Solution plant expansion will bring more of Dow's popular DOWLEX and ELITE resins to market and enable Dow to increase its participation in high value markets like food packaging and hygiene.
As MRC informed before, Dow Chemical had signed a definitive agreement under which ANGUS Chemical Co. will be sold to Golden Gate Capital for USD1.215 billion. The transaction is expected to close during the first quarter of 2015, subject to completion of customary regulatory filings.
The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.