Dow adding PE capacity in North America

By Frank Esposito
Senior Staff Reporter

Published: March 18, 2013 4:20 pm ET
Updated: March 22, 2013 11:05 am ET

Related to this story

Topics Packaging, Medical, Consumer Products, Electronics, Materials, Materials Suppliers
Companies & Associations Dow Chemical Co.

MIDLAND, MICH. -- Dow Chemical Co. is joining the growing list of resin makers that are adding polyethylene capacity in North America.

Officials with Midland, Mich.-based Dow said in a March 18 news release that the firm would build several new production units on the U.S. Gulf Coast. Products made at these units include Elite-brand enhanced PE, specialty low density PE and high-melt index elastomers. Dow previously had announced plans to add metallocene EPDM capacity in the Gulf Coast and to build a new plant making ethylene feedstock at its massive complex in Freeport, Texas.

"These investments are aimed at businesses that have consistently delivered a higher return on capital, which is clearly aligned with our long-term strategy," executive vice president Jim Fitterling said in the release.

Dow officials added that the new construction "further connects the company's U.S. manufacturing operations with cost-advantaged feedstocks available from increasing supplies of shale gas in North America." The new units also will create "thousands of new, high-paying jobs across the country's manufacturing sector."

Materials made by the new units will be sold into several end markets, including packaging, hygiene and medical, electrical and telecommunications, transportation, sports and leisure and consumer durables. Engineering and design work for the new units is expected to be completed in 2014.

Dow already ranks as one of the world's largest PE makers. No capacity totals or investment amounts for the new projects were included in the release. The combined Dow projects — including the new ethylene cracker — will employ 5,000 at construction peak and will support more than 35,000 jobs in the broader U.S. economy, officials said.

Also on March 18, Dow announced plans to build a new linear alpha olefins unit in the Gulf Coast in conjunction with Japanese materials firm Idemitsu Kosan Co. Ltd. and Mitsui & Co. Ltd. Dow uses linear alpha olefins in production of its polyethylene and elastomer materials

The linear alpha olefins announcement "further illustrates Dow's commitment to invest in high-return projects that deliver advantaged feedstocks for our differentiated, downstream derivatives," Andrew Liveris, chairman and chief executive officer, said in a news release.

Producers that already have announced North American PE expansions include ExxonMobil Chemical Co. and Chevron Phillips Chemical Co. LP.


Comments

Dow adding PE capacity in North America

By Frank Esposito
Senior Staff Reporter

Published: March 18, 2013 4:20 pm ET
Updated: March 22, 2013 11:05 am ET

Post Your Comments


Back to story


More stories

Image

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Jarden hiring for new plastics plant

December 19, 2014 1:45 pm ET

Consumer products conglomerate Jarden Corp. is hiring plastics technicians for a new operation in Erlanger, Ky.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events