Dow to Reduce Production at VCM Plant in Oyster Creek, Texas

Midland, MI - November 04, 2004

The Dow Chlor-Vinyl business announced that it plans to reduce production at its vinyl chloride monomer (VCM) facility and cease production of ethylene dichloride (EDC) at the Unit 1 facility in Oyster Creek, Texas, by the end of 2005. This net reduction accounts for approximately 4 percent of the North American VCM industry capacity. The remaining chlor-alkali, Oxy EDC, and VCM plants in Unit 5 at Oyster Creek will not be affected by this decision and will continue to operate.

“We remain very committed to ensuring reliability of supply to our current VCM customers,” says Philippe Raynaud de Fitte, vice president of Dow’s Chlor-Vinyl business. “Long-term operation of this portion of the facility would require significant capital investments which could not be justified against other options within the Dow portfolio. In addition, high and volatile energy and feedstock costs on the U.S. Gulf Coast have increased the cost of operating this facility. This decision maximizes Dow’s flexibility for long-term value creation.”

Approximately 10-20 positions will be affected by this phase out. Dow will make every effort to redeploy employees within the company where practical.

Dow will honor its current contract VCM commitments to its customers by supplying from its other VCM plants and via commercial agreements. EDC is an intermediate used to produce VCM. VCM is used to produce polyvinylchloride (PVC), a common plastic used in vinyl siding, piping, and many other applications.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

For Editorial Information:

David Winder
The Dow Chemical Company
(979) 238-3792


News Center News Releases Public Reports Security at Dow Sign-up for Texas Operations E-Updates About Texas Operations Dow in the Community Brazosport Industrial CAER 65th Anniversary Dow in Texas Sign-up for Texas Operations E-Updates Our Locations Texas Texas Operations		Dow to Reduce Production at VCM Plant in Oyster Creek, Texas Midland, MI - November 04, 2004 The Dow Chlor-Vinyl business announced that it plans to reduce production at its vinyl chloride monomer (VCM) facility and cease production of ethylene dichloride (EDC) at the Unit 1 facility in Oyster Creek, Texas, by the end of 2005. This net reduction accounts for approximately 4 percent of the North American VCM industry capacity. The remaining chlor-alkali, Oxy EDC, and VCM plants in Unit 5 at Oyster Creek will not be affected by this decision and will continue to operate. “We remain very committed to ensuring reliability of supply to our current VCM customers,” says Philippe Raynaud de Fitte, vice president of Dow’s Chlor-Vinyl business. “Long-term operation of this portion of the facility would require significant capital investments which could not be justified against other options within the Dow portfolio. In addition, high and volatile energy and feedstock costs on the U.S. Gulf Coast have increased the cost of operating this facility. This decision maximizes Dow’s flexibility for long-term value creation.” Approximately 10-20 positions will be affected by this phase out. Dow will make every effort to redeploy employees within the company where practical. Dow will honor its current contract VCM commitments to its customers by supplying from its other VCM plants and via commercial agreements. EDC is an intermediate used to produce VCM. VCM is used to produce polyvinylchloride (PVC), a common plastic used in vinyl siding, piping, and many other applications. Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. For Editorial Information: David Winder The Dow Chemical Company (979) 238-3792
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