Dow Polyurethanes Breaks Ground on Polyols Expansion in Terneuzen

March 10, 2008

Dow Polyurethanes, a business group within The Dow Chemical Company and its subsidiaries (Dow), today announced that Dow has broken ground on a major capacity expansion at its polyols plant in Terneuzen, The Netherlands. Dow’s investment in the Terneuzen facility will expand polyol production capacity by 180 kilotons per annum (KTA).

Dow announced it would move forward with the detailed engineering phase of a name-plate capacity expansion at the Terneuzen plant in September 2007. The expansion is on track to be completed by mid 2009. The plant’s infrastructure is currently undergoing extensive modifications, including new tanks and loading stations.

“This expansion supports Dow’s commitment to further grow our Performance businesses, like Dow Polyurethanes, throughout Europe,” said Doug Warner, business director for polyols, Dow Polyurethanes. “The Terneuzen site is one of the largest polyols production facilities in the world, and this significant investment will allow us to continue to serve our customers with the specialty polyols and polyurethanes systems products they need to differentiate themselves in the market.”

Global demand for polyurethanes continues to grow at a rate of 5 percent per year, fueled by increased consumption of polyurethane products in automotive, furniture and bedding, building and construction, and appliance applications. The polyol products that Dow manufactures at the Terneuzen site are used to make polyurethane products and fully formulated systems for a variety of end-use markets.

About Dow Polyurethanes

Dow is the world's largest producer of propylene oxide (PO), polyether polyols, and is a leading producer of quality aromatic isocyanates, such as MDI and TDI, an essential component of polyether polyols. Dow's polyurethane products and fully formulated polyurethane systems are used for a broad range of applications including construction, automotive, appliance, furniture, bedding and shoe soles to decorative molding, athletic equipment, and more. The business manufactures and markets rigid, semi-rigid and flexible foams, adhesives, sealants, coatings, elastomers and binders. Dow also offers the latest in polyol technology with RENUVA™ Renewable Resource Technology and VORANOL™ VORACTIV™ polyols, part of an ongoing initiative by Dow to lead the industry in providing high-performance products. For more information, visit www.dowpolyurethanes.com, www.dowpg.com, www.dowpo.com, www.pusystems.com, www.dowrenuva.com and www.voractiv.com.

About Dow

®™^* Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow

For Editorial Information:

Jessica Dub
The Dow Chemical Company
1-989-638-0550


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