Dow plans to halt Terneuzen MEG to focus on EO

18 March 2008 15:39  [Source: ICIS news]

MEG output to be closed by end of 2008LONDON (ICIS news)--Major producer Dow Chemical will switch to producing just ethylene oxide (EO) at its Terneuzen, Netherlands unit, halting monoethylene glycol (MEG) output by the end of 2008, according to a company press release on Tuesday.

In 2009, the company plans to boost efficiency of its purified EO output by 22% while reducing emissions from the plant.

“This project is aligned with Dow’s strategy to transform less cost-effective investments into opportunities with higher growth potential,” said Lee Christens, global business director for EO and MEG.

With new MEG capacity coming online in Asia and the Middle East, many market sources have been expecting a global surplus in supply soon to emerge.

This was one factor in Dow’s decision, said Christens.

“The transition to EO-only is an example of Dow’s commitment to further grow its performance businesses, such as polyurethanes, through an increased supply of competitive-cost raw materials,” added Christens.

In September, 2007, Dow said it would expand its polyols plant in Terneuzen.

Dow’s MEG and EO capacity at Terneuzen was rated at 170,000 tonnes/year and 165,000 tonnes/year respectively by ICIS plants and projects.

For more on EO and MEG visit ICIS chemical intelligence


By: Edward Cox
+44 20 8652 3214



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