Dow Announces Investment Plans to Meet Demand Growth for Silicones

The Dow Chemical Co. (Dow) has announced low capital intensity, high return investments in its upstream and downstream silicones franchise to accelerate innovation and support global customers’ demand in high growth markets, such as high performance building; home and personal care; electrical and industrial; consumer goods and components assembly.

The investment plans include:

• A series of incremental siloxane debottleneck and efficiency improvement projects over the next three years to further increase capacity and efficiency in Dow’s siloxane manufacturing facilities around the world.
• A hydroxyl functional siloxane polymer plant in Carrollton, Ky., which will increase its polymer capacity in the Americas by 65 percent, providing the technology to accelerate innovation with customers.
• Additional expansion projects to increase capacity in its performance silicones products and intermediates. This includes a specialty resin plant in Zhangjiagang, Jiangsu, China, which will provide resin intermediates for high value silicone products, including home and personal care; pressure sensitive adhesives; antifoams; and moldable optics for lighting.

“The projects we are announcing today support our ability to continue to meet strong global demand for Dow’s silicones materials, enabling us to grow and innovate more quickly with customers and advancing our leading positions in our targeted end-markets,” says Jim Fitterling, chief executive officer of The Dow Chemical Co. and chief operating officer for the materials science division of DowDuPont. “Further, these targeted investments are expected to deliver fast paybacks and higher return on invested capital for Dow, contributing to greater earnings and cash generation.”

In addition, the company also announced the start of a feasibility study for the construction of a siloxane plant. The geographic location of the proposed siloxane facility will be determined as an outcome of the feasibility study.

“Dow is committed to our ongoing investment in both upstream and downstream assets to bring a reliable supply to our customers,” says Mauro Gregorio, business president, Dow Consumer Solutions. “As an essential addition to Dow’s global silicones manufacturing footprint, the proposed new siloxane plant will expand our access to differentiated monomers and intermediates around the world, while strengthening our capabilities to accelerate and execute our strong innovation pipeline.”

Dow already operates nearly twenty silicones manufacturing facilities globally, including three world-scale siloxane manufacturing facilities, located in Carrollton, Ky., Barry, Wales, United Kingdom and Zhangjiagang, Jiangsu, China.