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Dow begins commercial production at new propylene facility
Dec '15
Dow Chemical has begun commercial production at its new world-scale propane dehydrogenation unit (PDH) to produce propylene located at the company's Oyster Creek site in Freeport, Texas.

The start-up of this propylene unit is the most recent milestone in Dow's comprehensive plan to further integrate its US operations with cost-advantaged feedstocks from increasing supplies of US shale gas.

“This is also expected to create long-term, competitive advantage for Dow's Performance Materials, Consumer and Infrastructure Solutions businesses,” Dow stated in a press release.

“This milestone solidifies our first-mover advantage by bringing our investments in the U.S. Gulf Coast to fruition,” said Andrew Liveris, Dow's chief executive officer.

“This is another important step in executing Dow's global growth strategy, further increasing our feedstock flexibility by harnessing the value of integration,” he added.

The new propylene production facility has a production capacity of 750 KTA, making it the largest on demand propylene facility of its kind, and the largest and most advanced Honeywell UOP Oleflex unit ever built.

Dow added that it continues to make significant progress on its world-scale ethylene unit, supporting infrastructure and the derivative investments aligned to Dow's Performance Plastics franchise.

“The completion of the Performance Plastics derivative investments will be synchronised with the start-up of the new ethylene unit,” it informed.

“Our investments in ethylene and propylene integration significantly reduce third-party purchases and improve the raw material costs to Dow's high-value derivatives businesses,” chief operating officer James Fitterling said.

“Our Gulf Coast investments will serve as a solid base for long-term growth while further bolstering our market competitiveness and improving our structural feedstock hedge,” Fitterling stated.

In 2014, Dow had annual sales of more than $58 billion and employed approximately 53,000 people worldwide and its more than 6,000 product families are manufactured at 201 sites in 35 countries. (AR)

Fibre2Fashion News Desk – India

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