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Dow Chemical To Expand Plastic Facilities in Texas And Louisiana

Area Development Online News Desk (08/27/2013)
As part of its “focused investment strategy on the U.S. Gulf Coast to integrate advantaged shale gas,” Dow Chemical Company said it will expand four of its leading brand plastic franchises in Freeport, Texas and Plaquemine, Louisiana.

“Dow Performance Plastics is the world’s leading plastics franchise and with these expansions Dow will be able to further leverage our cost-advantaged position and R&D expertise to deliver leading edge technology that provides a competitive benefit to our customers in many of our most strategic markets,” said Jim Fitterling, Executive Vice President for Dow, “Our history on the U.S. 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."

In Freeport, Texas, Dow will expand its High Melt Index AFFINITY brand polymer franchise. These materials deliver stronger bonding in hot melt packaging adhesives. The Company will also expand its ELITE polymer franchise, which delivers enhanced durability and flexibility for food packaging, hygiene and medical, industrial and consumer packaging markets. Both of these brands are powered by Dow's proprietary INSITE catalyst technology.

In Plaquemine, Louisiana, Dow will also expand its NORDEL metallocene EPDM franchise with next generation technology. Also powered by INSITE, NORDEL mEPDM provides the infrastructure, automotive, consumer durables, appliance and electrical and telecommunications markets with highly flexible, heat and chemical resistant polymers that deliver enhanced durability and long service life. Also in Plaquemine, Dow will expand its Low Density Polyethylene family of high performance polymers like AGILITY that are faster to process, more stable and deliver improved optics for applications in flexible food packaging.

The company said these actions, together with the Company’s collective, high-return investments in this region, are expected to drive strong revenue growth and generate approximately $2.5 billion in EBITDA once fully operational. The expansion will enable Dow to address growing customer and value chain demand in attractive markets such as food packaging, transportation and infrastructure, hygiene and medical, and electrical and telecommunications markets globally.

Construction is scheduled to begin soon on these investments, which were initially announced in March 2013, and are aligned with Dow’s industry-leading Performance Plastics franchise.


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