US Dow to build chlor-alkali plant in Texas

29 January 2008 20:47  [Source: ICIS news]

HOUSTON (ICIS news)--Dow Chemical will break ground this year on a membrane-cell chlor-alkali plant in Freeport, Texas, which will replace the less-efficient, existing production complex there, the company said on Tuesday.

Dow said the new facility would be completed sometime in 2011. Although the estimated costs of the plant were not disclosed, Dow said part of the investment would come from vinyl producer Shintech, although the plant would not be a joint venture.

“In exchange, Shintech will receive a consistent supply of [vinyl feedstock] vinyl chloride monomer (VCM) from Dow,” a spokesperson for Dow said.

The company said that closing the existing Freeport chlor-alkali complex and opening the new facility will result in a net reduction of chlorine and caustic soda production for Dow on the US Gulf coast.

A spokesperson for Dow declined to comment of the new facility’s estimated production capacity. Dow currently has the capacity to produce 3.6m tonnes/year of chlorine and 4m tonnes/year of caustic soda at its Freeport chlor-alkali complex.

However, by replacing the existing diaphragm-cell production process in Freeport with one that uses membrane cells, the company said it will gain greater cost savings through more efficient energy use.

Over the next three years, Dow said it will begin the process of shutting down its existing chlor-alkali complex in Freeport, which the company said is nearing the end of its economic life and would require significant investments to continue operation.

By: Greg Holt
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