Dow’s World-Scale Propylene Production Unit Investment Receives Initial Board Authorization
March 07 2012 - 8:00AM
Business Wire
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.
About Dow
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.
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