$190 Million Modernization of Dow's LHC-7 Facility to Start Later this Month

Freeport, TX - December 19, 2005

After more than a year of extensive planning, Dow Texas Operations' modernization of LHC-7, a hydrocarbons plant at its Plant B facility, will soon be starting. The large-scale turnaround activity will begin on Dec. 30, 2005 and is expected to last about 60 days. The $190 million project will help ensure that LHC-7 continues to be a long-term supplier of ethylene, a raw material used in many other plants at Dow Texas Operations.

"This modernization is a major investment in our community and it's an investment that will retain jobs," said Bob Walker, Vice President of Dow Texas Operations. "If these improvements are not made, LHC-7 would have to be shutdown."

The modernization of the LHC-7 plant, which first started up in 1973, is needed to improve energy efficiency and to meet the more stringent regulatory requirements related to volatile organic compounds and NOx. During a turnaround, the plant is shutdown to work on critical equipment. After the work is done, the plant is then re-started.

"The planned improvements will make LHC-7 more competitive," said Paul O'Driscoll, the production leader of the plant. "Due to the high costs of natural gas, ethylene operations along the Gulf Coast are continuously being evaluated. Plants similar to LHC-7 at Union Carbide Corporation facilities in Seadrift and Texas City were shut down rather than being modernized."

As part of the LHC-7 modernization, the plant's 10 furnaces will be replaced with five modern units. The new state-of-the-art furnaces are more thermally efficient and have higher yields, so they require less energy to produce the same amount of product. The furnaces also feature low NOx burners. NOx emissions will also be reduced as a result of the replacement of LHC-7's gas turbine with a steam turbine, which produces no NOx.

The steam for the new turbine will be produced at a new power plant at Dow's Plant B, which will improve energy efficiency by using modern technology and waste gas for fuel. To safely complete the plant shutdown and start-up processes during the modernization, flaring will occur at LHC-7. Flaring, which is an essential part of Dow's safe operations, is used to alleviate pressure buildups in our hydrocarbons plants by controlled combustion.

"We have already communicated with our near neighbors about the modernization and what they can expect early next year," said Walker.

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. 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		$190 Million Modernization of Dow's LHC-7 Facility to Start Later this Month Freeport, TX - December 19, 2005 After more than a year of extensive planning, Dow Texas Operations' modernization of LHC-7, a hydrocarbons plant at its Plant B facility, will soon be starting. The large-scale turnaround activity will begin on Dec. 30, 2005 and is expected to last about 60 days. The $190 million project will help ensure that LHC-7 continues to be a long-term supplier of ethylene, a raw material used in many other plants at Dow Texas Operations. "This modernization is a major investment in our community and it's an investment that will retain jobs," said Bob Walker, Vice President of Dow Texas Operations. "If these improvements are not made, LHC-7 would have to be shutdown." The modernization of the LHC-7 plant, which first started up in 1973, is needed to improve energy efficiency and to meet the more stringent regulatory requirements related to volatile organic compounds and NOx. During a turnaround, the plant is shutdown to work on critical equipment. After the work is done, the plant is then re-started. "The planned improvements will make LHC-7 more competitive," said Paul O'Driscoll, the production leader of the plant. "Due to the high costs of natural gas, ethylene operations along the Gulf Coast are continuously being evaluated. Plants similar to LHC-7 at Union Carbide Corporation facilities in Seadrift and Texas City were shut down rather than being modernized." As part of the LHC-7 modernization, the plant's 10 furnaces will be replaced with five modern units. The new state-of-the-art furnaces are more thermally efficient and have higher yields, so they require less energy to produce the same amount of product. The furnaces also feature low NOx burners. NOx emissions will also be reduced as a result of the replacement of LHC-7's gas turbine with a steam turbine, which produces no NOx. The steam for the new turbine will be produced at a new power plant at Dow's Plant B, which will improve energy efficiency by using modern technology and waste gas for fuel. To safely complete the plant shutdown and start-up processes during the modernization, flaring will occur at LHC-7. Flaring, which is an essential part of Dow's safe operations, is used to alleviate pressure buildups in our hydrocarbons plants by controlled combustion. "We have already communicated with our near neighbors about the modernization and what they can expect early next year," said Walker. Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. 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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