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PO facility of SCG-DOW at AIE to start up in 2011

17
Sep '09
The Dow Chemical Company (Dow) announced today that the SCG-DOW Group, a joint venture between Dow and The Siam Cement Group (SCG), and Solvay Peroxythai Ltd. recently commemorated significant milestones on the hydrogen peroxide to propylene oxide (HPPO) related investments with a foundation stone laying ceremony at the Asia Industrial Estate (AIE) site near Map Ta Phut, Thailand, where the HPPO facility is being built.

The SCG-DOW Group has procured all equipment and entered the initial construction phase on a world-scale propylene oxide (PO) plant, with an anticipated start-up in the first half of 2011. Once complete, the facility will manufacture PO via HPPO technology jointly developed by Dow and BASF, and will have a name plate capacity of 390 kilotons per annum (KTA).

The AIE site will also feature a specialty elastomers plant; a hydrogen peroxide plant built as a joint venture between Dow and Solvay; and power utilities and infrastructure. Nearby, a new liquids cracker, also jointly owned by SCG and Dow, will come on stream in 2010. The integrated Thailand plants represent a significant increase of the asset base for Dow in Thailand and Dow's largest manufacturing investments in Asia Pacific.

"This significant strategic investment helps enable Dow Polyurethanes to leverage our low cost-to-serve leadership position across the portfolio as well as fuel the growth of Dow's other Performance and Advanced Materials businesses," said Pat Dawson, president of Dow Polyurethanes, a global business group of Dow.

"The new large-scale, back-integrated plant, based on advanced HPPO technology, will be best positioned to address the region's increasing demand for PO and derivatives, which are driven by increased demand in markets such as appliance, construction, coatings, adhesives and sealants. Our customers in Asia Pacific will benefit from the reliable supply of this key raw material they need to competitively grow their business. Dow and our joint venture partners are very pleased to be able to offer the PO technology that delivers greater energy efficiency, a reduced physical footprint, and improved environmental performance."

In addition to the environmental benefits offered by HPPO technology, the Thailand HPPO project is also creating jobs in the region. By the time the expansion is complete, the companies of Dow in Thailand will have doubled their workforce. At the peak of new construction, it is estimated that up to 10,000 contract laborers will be working on the entire AIE site. With all of the new employees and activity at the site, Dow is proud that five million hours have already been worked safely on this project highlighting our commitment to environment, health and safety (EH&S).

Dow Chemical Company


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