Dow to reduce production output of US Gulf PO

09 December 2013 21:59  [Source: ICIS news]

NEW YORK (ICIS)--Dow will reduce production output of its propylene oxide (PO) in the US Gulf Coast, the company said on Monday.

Dow cited current economic conditions as the reason for the cutback.The company did not specify the magnitude of the cutbacks.

The company will concentrate the use and supply of its PO on specific markets.

Dow has PO manufacturing plants in Freeport, Texas, with 725,000 tonnes/year PO capacity, and in Plaquemine, Louisiana, with 330,000 tonnes/year PO capacity, according ICIS plants and projects.

Dow said that it does not expect the PO adjustment to impact jobs.

Adjusting its PO operating rate in North America will allow the company to continue producing PO and propylene glycol (PG), participate in its strategic markets and serve its customers.

The announcement follows one company made last week to shut down approximately 800,000 tonnes of chlorine capacity at its Freeport site.

The shutdown is parter of a larger strategy, in which Dow is carving out its chlorine, chlorinated organics and epoxy resins businesses, preparing them for a sale, a joint venture or a sin-off.

Dow did not specify the details, but it expects to complete the deals in the next 12-24 months.

By: Feliza Mirasol
+1 713 525 2653

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