19-04-2012

Dow to build new Ethylene production plant at Dow Texas operations

The Dow Chemical Company today announced that the Company  will construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, TX, as part of Dow’s previously announced comprehensive plan to further connect its U.S. operations  with cost-advantaged feedstocks available from increasing supplies of U.S. shale gas.
 
The new ethylene production facility at Dow Texas Operations will employ  up to 2,000 workers at its construction peak. Over the next five to seven years, Dow estimates that this project, together with all other planned projects announced as part of the Company’s comprehensive U.S. investment plan, will employ up to 4,800 workers during peak  construction and support over 35,000 jobs in the broader U.S. economy.
 
“For the first time in over a decade, U.S. natural gas prices are  affordable and relatively stable, attracting new industry investments and growth and putting us on the threshold of an American manufacturing  resurgence,” said Andrew N. Liveris, Dow Chairman and Chief Executive Officer. “Dow is proud to have been among the first  manufacturing companies to declare a comprehensive plan to take  advantage of these favorable market dynamics, further enhancing our footprint in the Americas and the profitability of our global businesses  while supporting economic revitalization in the communities in which we operate. Constructing this new ethylene cracker at Dow Texas Operations will create a long-term advantage for our downstream businesses and for our Company as a whole, and the benefits will accrue not only to Dow but  to the state and national economy.”
 
This decision marks another significant milestone in the Company’s strategy to further develop the competitive advantage for Dow’s Performance Plastics, Performance Materials and Advanced Materials  businesses by expanding access to low-cost natural gas-based feedstocks, which are used in the production of Dow products that are essential to over a dozen consumer markets.
 
“The outlook for advantaged U.S. natural gas was a significant factor in  Dow’s decision to invest $4 billion to grow our overall ethylene and  propylene production capabilities in the U.S. Gulf Coast region,” said Jim Fitterling, Dow Executive Vice President and President of Feedstocks  & Energy and Corporate Development. “Today, 70 percent of the Company’s  global ethylene assets are in regions with cost advantaged feedstocks – and we’ve seen the benefits this advantage provides given oil-based naphtha margin pressure in Europe and Asia. This plan represents a game-changing move to strengthen the competitiveness of our high-margin, high-growth derivatives businesses as we continue to capture growth in the Americas.”