Dow U.S. Gulf Coast Investments On Track To Deliver Competitive Advantage Through Shale Gas

The Dow Chemical Company (NYSE: DOW) today announced that the Company’s comprehensive plan to further connect its U.S. operations with cost-advantaged feedstocks from increasing supplies of U.S. shale gas is moving forward, and remains on-track to deliver long-term competitive advantage for many of Dow’s downstream businesses.

Plans to increase ethylene supply and ethane cracking capabilities at existing U.S. Gulf Coast facilities strengthen the competitiveness of Dow’s Performance Plastics, Performance Products and Advanced Materials businesses and enable profitable growth in the Americas.

Key milestones of the Company’s U.S. Gulf Coast investment plan include:
  • Re-starting an ethylene cracker at the Company’s St. Charles Operations site near Hahnville, La. by the end of 2012. This project is progressing on time;
  • Improving ethane feedstock flexibility for an ethylene cracker at the Company’s Louisiana Operations site in Plaquemine, La. in 2015;
  • Constructing a new, world-scale ethylene production plant in the U.S. Gulf Coast, for start-up in 2017, which facilitates long-term growth in Dow’s Performance Plastics segment;
  • Constructing a new, world-scale on-purpose propylene production facility at Dow Texas Operations, for start-up in 2015.

“Our U.S. Gulf Coast investments represent a game-changing move to strengthen the competitiveness of our high-margin, high-growth derivatives businesses as we continue to capture growth in the Americas,” said Brian Ames, Dow business president of Olefins, Aromatics and Alternatives. “Today, 70 percent of the Company's global ethylene assets are in regions with cost advantaged feedstocks – and we've seen the benefits this advantage provides even while the global industry is at mid-cycle operating rates. In addition, the investment for on-purpose propylene production will improve the downstream propylene envelope integration and provide a platform for margin improvements.”

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

If you liked this article you might like

Why Bayer's $66 Billion Takeover of Monsanto Probably Won't Happen Until 2018

Cramer: The Market Is Back to the Late '80s, Early '90s

DowDupont Closes Higher in First Day of Trading, Company Still Faces Challenges

FMC Stock's Impressive Rally Has Another 20% to Gain: Jim Cramer

Jim Cramer on Why FMC Was Upgraded by Bank of America