Davy Process Technology Licenses Butanol Plant to Formosa Plastics Corporation

London, UK and Midland, MI - June 20, 2006

Davy Process Technology Limited (DPT) in cooperation with Union Carbide Corporation (UCC), a subsidiary of The Dow Chemical Company, has licensed to Formosa Plastics Corporation (FPC) a plant for producing 250,000 metric tons per year of normal butanol that FPC will build at the Formosa Plastics Group’s Mailiao complex in Taiwan. The plant is scheduled to go into operation during 2008, DPT having already completed the basic engineering design at its London office.

The plant will use LP Oxo^sm SELECTOR^sm 30 Technology using NORMAX™ Catalyst to conduct the low pressure hydroformylation of propylene using synthesis gas to produce normal and iso-butyraldehydes, before conversion of the normal product to normal butanol. The SELECTOR 30 Technology is one of several LP Oxo offerings available from DPT and UCC, and was chosen by FPC as it provides the highest commercial isomer selectivity favouring the normal product that is available today and therefore the most cost efficient route to normal butanol.

FPC will source the propylene feedstock from Formosa Petrochemical Corp. The normal butanol will be used by FPC in a new acrylic esters plant it is building at Mailiao. FPC is also building further crude acrylic acid capacity at Mailiao.

The FPC plant will be the 31^st project DPT and UCC have licensed for their LP Oxo Technology. More than 60% of the global production of butyraldehydes comes from plants using LP Oxo. Most of these plants employ SELECTOR 10 Technology, giving around three times the co-production of iso-butyraldehyde than the SELECTOR 30 Technology FPC has opted for. By being in a position to vary the isomer selectivity, DPT and UCC are able to tailor the design of the oxo system to suit customer preferences as market dynamics shift.

Davy Process Technology has a global business in petrochemicals technology development and technology licensing. The company has headquarters in London, and its Technology Centre in Stockton-on-Tees. It owns a range of proprietary process technologies such as Methanol, Gas Conversion Technologies, Butanediol, Natural Detergent Alcohols, Oxo Alcohols, Industrial Amines, Ethyl Acetate and Fertilisers. Davy Process Technology is a Johnson Matthey company. For further information, visit the company’s website at www.davyprotech.com.

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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. Dow Technology Licensing is a business unit of Dow that markets technologies owned by The Dow Chemical Company, Union Carbide Corporation and their subsidiaries.

For Editorial Information:

Kathleen Davis
The Dow Chemical Company
1-989-636-2760

Michael H. J. Ashley
Davy Process Technology
+44 (0) 20 7957 3975
mike.ashley@davyprotech.com

Liz McDonnell
Gibbs & Soell PR
1-212-697-2600, ext. 247
emcdonnell@gibbs-soell.com


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