11 May 2017
DETAILS
(NYSE: DOW) today announced
its next phase of comprehensive investments
over the next five years to further
enhance its competitive advantage and deliver earnings growth.
These investments will stimulate economic activity,
primarily in the United States, while also creating
a significant number of jobs tied to
state-of-the-art manufacturing and infrastructure investments.
The Company also continues to accelerate its efforts
to train and educate the workforce
and close the skills gap for tomorrow’s manufacturing careers.
The projects announced today extend
Dow’s U.S. growth investments
to more than $12 billion over a 10-year period
and are expected to employ
* approximately 5,500 workers at peak activity,
* as well as 300 permanent jobs.
Investments in the United States will support
the largest job creation, reaching
* approximately 3,500 construction jobs
* and 200 full-time technical, vocational
and professional careers.
The job creation is also expected to have a multiplier effect,
supporting additional employment
of nearly 2,000 jobs across the broader economy(1)
Dow’s chairman and chief executive officer
“Today’s announcement underscores
Dow’s commitment to driving the next-phase
of our growth through a comprehensive set of investments
that will benefit our shareholders, customers, employees
and the communities in which we operate,”
“Manufacturing plays a vital role in driving economic growth
and prosperity across virtually all sectors of society.
The positive investment environment in the U.S. chemical
and materials sector, driven by
competitive feedstocks and a skilled workforce,
is a driver for Dow to further invest in the USA.”
The investments announced today are expected
to come online in a phased manner,
beginning in 2020 and will require
estimated capital expenditures
of approximately $4 billion,
spread over the next five years.
The primary components of this plan include:
- Expansion of the capacity of Dow’s new
TX-9 ethylene cracker through
the addition of two furnaces, bringing
the facility’s total ethylene capacity
to 2 million metric tons and making
the TX-9 cracker
the largest ethylene facility in the world. - Construction of a world-scale 600,000 metric ton
polyethylene unit in the U.S. Gulf Coast
based on Dow’s proprietary Solution Process technology.
This new capacity will address
consumer-driven demand
in specialty packaging,
health and hygiene,
and industrial and consumer packaging applications. - Dow will pursue a series of investments
to strengthen its Polyurethanes franchise
aimed at driving downstream specialty polyols
and systems growth and infrastructure enhancements. - The Company will undertake a series of
incremental debottleneck projects
across its global asset network
that will deliver approximately 350,000 metric tons
of additional polyethylene,
the majority of which will be in North America. - Construction of a new catalyst production unit
for key catalysts licensed by Univation,
a wholly-owned subsidiary of Dow,
enhancing Univation’s licensing model. - Construction of a world-scale 450,000 metric ton
polyolefins facility in Europe.
This capacity addition will maximize
the value of Dow’s ethylene integration
in the region and serve growing demand
for high-performance pressure pipes and fittings,
as well as caps and closures applications. - The Company will pursue additional investments
to benefit from shale gas economics,
further enhancing feedstock flexibility
and reducing volatility from these advantaged inputs. - Dow will further enhance its Pack Studios,
the Company’s global network of packaging experts,
equipment and testing capabilities that accelerates
the collaborative development of better packaging.
Over the next two years, Dow will drive
several advancements in the U.S. and globally
in polyethylene and adhesive innovations
and rapid prototyping, strengthening
the Company’s position
as the preferred development partner
for packaging innovation. - Dow will invest an additional $400 million
to support the transformation of
its Midland, Michigan manufacturing operations,
enabling further synergies
from the integration of
Dow and Dow Corning’s manufacturing operations
as a result of the recent restructuring
of Dow Corning’s ownership. - Dow also recently announced it will invest in a new,
$100 million state-of-the-art innovation center
at its global headquarters in Midland, Michigan.
The center will house scientists and engineers
who will focus research and development activities
on advancing solutions
for home and personal care products;
broadening Dow’s energy-saving building technologies;
enhancing materials for critical infrastructure;
and driving closer partnerships with automakers
as they further accelerate efforts to
light-weight automobiles and develop
hybrid, electric and autonomous transportation solutions.
For further information contact:
Jarrod Erpelding
Media Relations
The Dow Chemical Company
989.633.1863
jarrod.erpelding@dow.com
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