Dow Announces Shutdown of Styrene Monomer and Ethylbenzene Plants in Freeport, Texas
FREEPORT, Texas, Sept. 10 /PRNewswire-FirstCall/ — The Dow Chemical Company (NYSE: DOW) announced today that it will close styrene monomer and ethylbenzene production units at its Dow Texas Operations site in Freeport, Texas by the end of the year.
The closures are part of a broad restructuring plan the Company announced at the end of June 2009, which is designed to right-size Dow’s manufacturing footprint and reduce exposure to its capital intensive Basics portfolio.
“Closing these assets will help align Dow’s styrene supply with U.S. demand and is another outcome of our plan to optimize our ethylene and styrene envelopes,” said Brian Ames, global business director, Olefins, Aromatics and Aromatic Derivatives. “This decision also aligns with Dow’s asset light strategy and improves our competitive position in North America.”
Dow has secured a long-term contract for reliable styrene supply in the marketplace to meet the styrene demand of its derivative businesses.
In the second quarter of 2009, Dow announced a restructuring plan which included actions to fully integrate ethylene production with internal demand — reducing the Company’s ethylene demand on the U.S. Gulf Coast by approximately 30 percent. As a result, Dow expects to eliminate its purchase of ethylene from the merchant market (approximately three billion pounds annually) while improving the Company’s cost position.
Dow remains committed to the North American market and to the Dow Texas Operations site in Freeport. Dow Texas Operations is the Company’s largest integrated manufacturing site in the world, with approximately 70 production units on site.
Dow is a diversified chemical company that combines the power of science and technology with the “Human Element” to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in approximately 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. In 2008, Dow had annual sales of $57.5 billion and employed approximately 46,000 people worldwide. The Company has 150 manufacturing sites in 35 countries and produces approximately 3,300 products. On April 1, 2009, Dow acquired Rohm and Haas Company, a global specialty materials company with sales of $10 billion in 2008, 98 manufacturing sites in 30 countries and approximately 15,000 employees worldwide. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
SOURCE The Dow Chemical Company