Represents Latest Action in Comprehensive Investment Plan to Position Performance and Advanced Materials Businesses for Growth
MIDLAND, Mich. - March 07, 2012
The Dow Chemical Company announced today that its Board of Directors has authorized capital to finalize detailed engineering and purchase long lead-time equipment for a new, world-scale propylene production facility to be constructed at Dow Texas Operations.
This represents the latest move in the Company’s comprehensive strategy to increase its ethylene and propylene production and connect its operations with low-cost feedstock opportunities available from increasing supplies of U.S. shale gas.
“This authorization marks yet another significant milestone in Dow’s comprehensive plan to create competitive advantage for our downstream Performance Materials and Advanced Materials businesses by further connecting our U.S. operations with cost-advantaged feedstocks,” said Jim Fitterling, executive vice president of Dow and president of Feedstocks & Energy and Corporate Development. “This investment directly supports Dow’s transformational strategy to enhance its feedstock flexibility and integration strength, and positions the Company for growth in attractive markets and geographies.”
Basic engineering work for the new on-purpose propylene production facility at Dow Texas Operations has commenced, and the project is on track for production start-up in 2015.
In December 2011, Dow and UOP LLC, a Honeywell company, signed a technology licensing agreement, enabling on-purpose propylene production at the facility. Under the terms of this agreement, Dow will license UOP's proprietary UOP C3 Oleflex TM process technology for manufacturing on-purpose propylene from propane. Dow also signed catalyst supply and performance guarantee agreements with UOP.
On-purpose propylene production from propane will create better economic value for Dow compared with high-priced purchased propylene.
“The availability of cost-advantaged feedstocks from U.S. shale gas developments represents a value-creating opportunity for our downstream businesses, and Dow is capitalizing on this,” said Brian Ames, vice president of Olefins, Aromatics and Alternatives. “Our Company was among the first in our industry to declare a comprehensive plan to take advantage of the increasing supplies of U.S. natural gas liquids, and we remain on track to implement that plan, which will create thousands of domestic jobs.”
The project is expected to create 1,300 jobs at its construction peak. When taken in context with Dow’s comprehensive USGC investments, the Company expects to create a total of 40 contractor jobs and 80 new, Dow direct jobs to operate and maintain the facilities. Further Dow estimates that this project, together with all other planned projects announced on April 21, 2011 as part of company’s comprehensive U.S. investment plan, will create up to 35,000 indirect jobs in the United States.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2011, Dow had annual sales of $60 billion and employed approximately 52,000 people worldwide. The Company's more than 5,000 products are manufactured at 197 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
Note: The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. 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.
For editorial information:
Gina Gibbs Foster
The Dow Chemical Company
+1 (989) 633-1147