- New capacity to support global growth in key end-markets
delivering 10% to 15% annual growth rates
- Builds on previously announced capacity expansions,
increasing Company's global alkoxylation capacity by 70% vs. 2020
baseline, collectively
- Higher return and faster-payback projects expected to come
online in 2024 and 2025
MIDLAND,
Mich., April 21, 2022 /PRNewswire/ -- Dow
(NYSE: DOW) announced today plans to expand its global alkoxylation
capacity in the U.S. and Europe to
meet increasing demand across a wide range of fast-growing
end-markets where the Company is delivering 10% to 15% annual
growth rates, from home and personal care to industrial and
institutional cleaning solutions and pharmaceuticals.
The faster-payback, higher return investments announced today
will increase Dow's capacity, while maintaining current carbon
emissions levels through the use of efficient technologies and site
improvements. These investments in the U.S. and Europe are backed by supply agreements with
customers, including leading consumer brands, and expected to come
online in 2024 and 2025, respectively.
"We have consistently seen increased demand for our alkoxylation
capabilities aligned to industry sectors growing faster than GDP
across the cycle," said Brendy
Lange, business vice president of Dow Industrial Solutions.
"These latest investments are another demonstration of our
commitment to customer collaboration and innovation backed by
industry leading integration."
Today's announcement builds on the Company's alkoxylation
capacity expansions announced in 2018 in Louisiana and in 2019 in Spain, which are both on track to come online
this year. In total, these and other efficiency projects are
expected to generate more than $150
million in run-rate EBITDA by 2025, with returns greater
than 20%. Collectively, Dow's investments will result in
approximately 70% global capacity growth for Dow and its customers
since 2020.
Dow's versatile alkoxylation assets upgrade basic materials
science building blocks to produce safe and sustainable ingredients
for cosmetics, household and industrial cleaning, home and personal
care, crop defense, oil and gas, pharmaceuticals, paints and many
other products for everyday use in a number of product lines,
including TERGITOL™, UCON™, ECOSURF™, and CARBOWAX™ SENTRY™.
About Dow
Dow (NYSE: DOW) combines global breadth;
asset integration and scale; focused innovation and materials
science expertise; leading business positions; and environmental,
social and governance (ESG) leadership to achieve profitable growth
and deliver a sustainable future. The Company's ambition is to
become the most innovative, customer centric, inclusive and
sustainable materials science company in the world. Dow's portfolio
of plastics, industrial intermediates, coatings and silicones
businesses delivers a broad range of differentiated, science-based
products and solutions for its customers in high-growth market
segments, such as packaging, infrastructure, mobility and consumer
applications. Dow operates 104 manufacturing sites in 31
countries and employs approximately 35,700 people. Dow delivered
sales of approximately $55 billion in 2021. References to
Dow or the Company mean Dow Inc. and its subsidiaries. For more
information, please visit www.dow.com or follow
@DowNewsroom on Twitter.
For further information, please contact:
J.D. Sterba
+1 (248) 821-1133
jdsterba@dow.com
Twitter: https://twitter.com/DowNewsroom
Facebook: https://www.facebook.com/dow/
LinkedIn: http://www.linkedin.com/company/dow-chemical
Instagram: http://instagram.com/dow_official
Cautionary Statement about Forward-Looking Statements
Certain statements in this report are "forward-looking
statements" within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements often address expected future business and
financial performance, financial condition, and other matters, and
often contain words or phrases such as "anticipate," "believe,"
"estimate," "expect," "intend," "may," "opportunity," "outlook,"
"plan," "project," "seek," "should," "strategy," "target," "will,"
"will be," "will continue," "will likely result," "would" and
similar expressions, and variations or negatives of these words or
phrases.
Forward-looking statements are based on current assumptions and
expectations of future events that are subject to risks,
uncertainties and other factors that are beyond Dow's control,
which may cause actual results to differ materially from those
projected, anticipated or implied in the forward-looking statements
and speak only as of the date the statements were made. These
factors include, but are not limited to: sales of Dow's products;
Dow's expenses, future revenues and profitability; the continuing
global and regional economic impacts of the coronavirus disease
2019 ("COVID-19") pandemic and other public health-related risks
and events on Dow's business; any sanctions, export restrictions,
supply chain disruptions or increased economic uncertainty related
to the ongoing conflict between Russia and Ukraine; capital requirements and need for and
availability of financing; unexpected barriers in the development
of technology, including with respect to Dow's contemplated capital
and operating projects; Dow's ability to realize its commitment to
carbon neutrality on the contemplated timeframe; size of the
markets for Dow's products and services and ability to compete in
such markets; failure to develop and market new products and
optimally manage product life cycles; the rate and degree of market
acceptance of Dow's products; significant litigation and
environmental matters and related contingencies and unexpected
expenses; the success of competing technologies that are or may
become available; the ability to protect Dow's intellectual
property in the United States and
abroad; developments related to contemplated restructuring
activities and proposed divestitures or acquisitions such as
workforce reduction, manufacturing facility and/or asset closure
and related exit and disposal activities, and the benefits and
costs associated with each of the foregoing; fluctuations in energy
and raw material prices; management of process safety and product
stewardship; changes in relationships with Dow's significant
customers and suppliers; changes in consumer preferences and
demand; changes in laws and regulations, political conditions or
industry development; global economic and capital markets
conditions, such as inflation, market uncertainty, interest and
currency exchange rates, and equity and commodity prices; business
or supply disruptions; security threats, such as acts of sabotage,
terrorism or war including the ongoing conflict between
Russia and Ukraine; weather events and natural disasters;
disruptions in Dow's information technology networks and systems;
and risks related to Dow's separation from DowDuPont Inc. such as
Dow's obligation to indemnify DuPont de Nemours, Inc. and/or
Corteva, Inc. for certain liabilities.
Where, in any forward-looking statement, an expectation or
belief as to future results or events is expressed, such
expectation or belief is based on the current plans and
expectations of management and expressed in good faith and believed
to have a reasonable basis, but there can be no assurance that the
expectation or belief will result or be achieved or accomplished. A
detailed discussion of principal risks and uncertainties which may
cause actual results and events to differ materially from such
forward-looking statements is included in the section titled "Risk
Factors" contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 2021.
These are not the only risks and uncertainties that Dow faces.
There may be other risks and uncertainties that Dow is unable to
identify at this time or that Dow does not currently expect to have
a material impact on its business. If any of those risks or
uncertainties develops into an actual event, it could have a
material adverse effect on Dow's business. Dow and TDCC assume no
obligation to update or revise publicly any forward-looking
statements whether because of new information, future events, or
otherwise, except as required by securities and other applicable
laws.
®TM Trademark of The Dow Chemical Company ("Dow") or
an affiliated company of
Dow
View original content to download
multimedia:https://www.prnewswire.com/news-releases/dow-announces-new-alkoxylation-capacity-in-us-and-europe-to-meet-continued-robust-demand-growth-301529940.html
SOURCE The Dow Chemical Company