US Dow new propylene plants to boost downstream margins – Liveris

26 April 2012 19:55  [Source: ICIS news]

HOUSTON (ICIS)--US-based Dow Chemical expects its on-purpose propylene plants will boost margins for several of its segments, its chief executive said on Thursday.

Dow plans to build two propane dehydrogenation (PDH) plants, with the first one starting operations in 2015 at its Freeport complex in Texas.

The second PDH plant could be completed in 2018, and Dow still has not announced a site.

The PDH plants could give Dow a big cost advantage, since they would make propylene derived from natural gas based propane.

Most of the world's propylene is produced as a co-product from oil-based feedstock.

With PDH, Dow CEO Andrew Liveris said margins for the company's coatings and infrastructure segments could expand by 100-200 basis points. Margins for performance materials could expand by 300 basis points.

Liveris made his comments during an earnings conference call.

By: Al Greenwood
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