07 January 2013 14:55 [Source: ICIS news]
LONDON (ICIS)--US producer Dow Chemical’s recently restarted St Charles Olefins 2 cracker in Louisiana is expected to deliver a $150m (€114m) increase to the group’s earnings before interest, tax depreciation and amortisation (EBITDA) in 2013, it said on Monday.
The company said plans to increase ethylene and propylene supply and ethane cracking capabilities at existing US Gulf Coast facilities will strengthen the competitiveness of its Performance Plastics, Performance Products and Advanced Materials businesses and enable profitable growth in the Americas.
Dow confirmed on 2 January it had restarted the cracker, after idling the unit for nearly four years. The 380,000 tonne/year cracker was shut down in January 2009 in the wake of the global financial crisis.
The facility is on line and producing on-spec ethylene as of 25 December, Dow said. The company has a second cracker in St Charles with 610,000 tonnes/year of capacity.
Brian Ames, president of Dow Olefins, Aromatics and Alternatives, said on Monday the plant’s start-up represents the first major milestone within the group’s investment strategy to further connect its US operations with cost-advantaged feedstocks from increasing supplies of shale gas.
“This action further reduces the company’s purchased ethylene, lowering costs and strengthening the competitiveness of our high-margin, high-growth derivatives businesses,” he added.
Additional reporting by William Lemos
($1 = €0.76)
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