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


The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements made by or on behalf of The Dow Chemical Company and its subsidiaries (the Company). The forward-looking statements contained in this web site involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices, and other factors as discussed in filings with the U.S. Securities and Exchange Commission (SEC). These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental, and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

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