Dow to expand production of leading plastic brands

27 August 2013 (Last Updated August 27th, 2013 18:30)

Global chemical company Dow has confirmed the locations for expansion of four of its industry-leading performance plastics franchises in Texas and Louisiana.

Dow HQ

Global chemical company Dow has confirmed the locations for expansion of four of its industry-leading performance plastics franchises in Texas and Louisiana.

The actions, along with the company's collective investments on the US Gulf Coast, are expected to raise about $2.5bn in earnings before interest, taxes, depreciation, and amortisation (EBITDA) once fully operational.

The expansion will also enable Dow to address growing customer and value chain demand in markets such as food packaging, transportation and infrastructure, hygiene and medical and electrical and telecommunications markets globally.

Dow executive vice president Jim Fitterling said that the expansion will allow the company to be able to exploit further its position and R&D expertise to deliver technology that provides a competitive benefit to its customers.

"Our history on the US Gulf Coast reaches back more than 70 years, and we're proud to continue our commitment to this important region with these strategic and accretive investments," Fitterling added.

In Freeport, Texas, the company will expand its high melt index (HMI) AFFINITY brand polymer franchise which deliver better bonding in hot melt packaging adhesives. It will also expand its ELITE polymer franchise, which delivers durability and flexibility for food packaging, industrial and consumer packaging markets. Both brands are powered by the company's INSITE catalyst technology.

In Plaquemine, Louisiana, Dow will expand its NORDEL metallocene EPDM franchise and its low-density polyethylene (LDPE) family of polymers such as AGILITY that deliver improved optics for applications in flexible food packaging.

Construction on the investments, which were initially announced in March, is slated to commence soon.


Image: Corporate headquarters of Dow Chemical in Midland. Photo: courtesy of [email protected].