Dow to develop new performance plastics capacity on US Gulf Coast

18 March 2013 12:26  [Source: ICIS news]

Dow to develop new performance plastics capacity on US Gulf CoastLONDON (ICIS)--Dow Chemical is to capitalise on the US shale gas advantage by ramping up its performance plastics capacity on the US Gulf Coast, the specialty chemicals giant said on Monday.

Planned units include facilities for the production of ethylene-propylene-diene monomer (EPDM), elastomers, polyethylene (PE) and low density polyethylene (LDPE).

The facilities are currently in the front end engineering and design (FEED) phase, and are expected to be completed in 2014.

The plants will utilise shale gas feedstocks piped in from an ethylene plant under construction at the company’s Freeport, Texas site, expected to come onstream in 2017. The units will produce performance materials for the packaging, medical, electrical, consumer, telecoms and leisure industries.

Dow is currently scouting locations along the Gulf Coast, with the exact spot to be announced at a later date. No financial or capacity details were disclosed.

“These new facilities will include a wide range of technologies that will produce differentiated, high performance materials for the fastest growing segments in Dow’s existing markets, while providing access to new markets and applications,” said Jim Fitterling, Dow’s executive vice president.

“These investments are also aimed at businesses that have consistently delivered a higher return on capital, which is clearly aligned with our long-term strategy,” he added.

The company announced plans for another Gulf Coast project on Monday, through a joint venture with Japanese companies Idemitsu Kosan and Mitsui. The partners are to develop a linear alpha olefins plant in the region.

By: Tom Brown
+44 208 652 3214

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