Dow’s feedstock strength is unrivaled in the industry and provides a sustainable competitive advantage for our ethylene- and propylene-based downstream specialty businesses. Recently announced investments will only strengthen this advantage.
Solutions At Work
- Dow is the largest, most flexible and experienced ethylene producer
- Continued investments on the U.S. Gulf Coast and in the Middle East will deepen our advantage
- Our cost-advantaged feedstocks enable downstream growth in our technology-rich, higher-margin businesses
Dow currently has 70% of its ethylene production in cost-advantaged regions. In North America, the shale gas exploration and production boom is fueling significant cost advantages, as the relative cost of natural gas is lower than oil-based feedstocks in Europe and Asia.
Global Ethylene Cost Curve
Recently announced U.S. Gulf Coast investments in ethylene and propylene integration, along with the growing benefits from shale gas dynamics, are expected to deliver at least $2 billion in EBITDA in 2017. These investments will increase Dow’s ethylene production capabilities by as much as 20% over the next three years, while also boosting the Company’s on-purpose propylene production.
Dow EBITDA Growth from Ethylene Derivatives
Within the next five years, nearly 80% of our internal ethylene production will feed our performance businesses, helping to enable sustainable, profitable growth. In Performance Plastics alone, advantaged feedstocks are expected to contribute approximately $1 billion in EBITDA by 2017.
Propylene Integration Enhances Profitability
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