Dow Chemical restarts La. ethylene plant

By Frank Esposito
Senior Staff Reporter

Published: January 8, 2013 6:00 am ET

Related to this story

Topics Materials, Suppliers

MIDLAND, MICH. (Jan. 8, 10:30 a.m. ET) — It was a Merry Christmas for Dow Chemical Co., as the firm re-started production of plastic feedstock ethylene at a plant in Louisiana on Dec. 25.

Dow’s St. Charles plant in Hahnville, La., had not made ethylene for almost four years after being taken offline in January 2009. The start-up “represents the first major milestone within our U.S. Gulf Coast investment strategy,” Dow’s Brian Ames said in a Jan. 7 news release. Ames serves as president of olefins, aromatics and alternatives for Midland, Mich.-based Dow.

Company officials added in the release that resuming production also is part of Dow’s investment plan to further connect its U.S. operations with cost-advantaged feedstocks from increasing supplies of U.S. shale gas.

In addition to the St. Charles restart, Dow has announced plans to build a new ethylene cracker in Freeport, Texas, and to enhance existing feedstock plants there and in Plaquemine, La.

To date, officials have not announced plans to increase polyethylene capacity, although other North American competitors are doing so. Dow also plans to build a plant making on-purpose supplies of plastic feedstock propylene in Freeport.

When the St. Charles restart was announced in late 2011, officials said restarting ethylene and propylene production there would cost $250 million and would create 35 full-time jobs and several hundred temporary construction jobs. A propylene restart was not mentioned in the Jan. 7 release.

The announced restart is expected to add $150 million to Dow’s pretax profit in 2013, officials said.

Dow ranks as one of the world’s largest makers of polyethylene and also makes a variety of specialty plastics. The firm generated sales of almost $43 billion in the first nine months of 2012. Almost half of that amount coming from its plastics-related businesses.


Comments

Dow Chemical restarts La. ethylene plant

By Frank Esposito
Senior Staff Reporter

Published: January 8, 2013 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Huntsman closing four pigment plants

March 5, 2015 3:36 pm ET

Huntsman Corp. is closing four plants — three in the U.S. and one in Germany — that make pigments for plastics and other markets.    More

Image

Mold maker Moldworx building in Arizona to bring in more molding

March 5, 2015 10:13 am ET

Moldworx LLC has begun leasing more space in Gilbert, Ariz., to allow it to grow its injection molding business.    More

Image

Bayer to stop MDI production in Brazil

March 4, 2015 9:21 am ET

Bayer AG's Bayer MaterialScience plans to stop production of MDI polyurethane at its plant near Rio de Janeiro in July, removing 55 metric tons per...    More

Image

Best Places To Work: No. 6, Colors For Plastics

March 4, 2015 12:35 pm ET

Colors For Plastics, which now employs 115 people, started with one man who handled everything.    More

Image

Best Places To Work: No. 7, CMD Corp.

March 4, 2015 12:27 pm ET

There's a lot of innovating going on at the No. 7 company on Plastics News' Best Places to Work ranking.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events