Oct 3 2006
The Dow Chemical Company announced today that it plans to expand manufacturing capacities for two products at its production site in Estarreja, Portugal.
Dow Polyurethanes, a business unit of Dow, intends to expand MDI production at the site, resulting in a significant increase in the Company’s global MDI capacity. Scheduled for completion in 2009, the added capacity will help address strong market demand for the product, which is currently estimated at 8 billion pounds per year globally.
In addition, Dow Building Solutions announced its intention to add additional manufacturing capacity for STYROFOAM™ brand building insulation products. This planned expansion is subject to all customary final approvals.
“With global demand for MDI growing at a steady pace, we are constantly looking for simple ways to streamline our operations and add incremental capacity wherever we can,” explained Pat Dawson, vice president of Dow Polyurethanes. “At the Estarreja site we have the opportunity to realize an incremental capacity addition quickly and cost-effectively.”
MDI is a major raw material used in the production of rigid polyurethane foams and polyurethane elastomers. Demand for MDI is currently growing at 6 to 7% annually and that is expected to continue. Overall global demand is particularly strong in end-use markets such as home, commercial, and industrial foam insulation, as well as refrigeration, appliances and coatings, sealants, elastomers and adhesives.
“Building on our new PMDI facility at Freeport in Texas, which became fully operational in May 2006, our plans for Estarreja underscore our commitment to the global polyurethanes industry and to our customers,” said Dawson.
The planned STYROFOAM expansion would enhance Dow’s ability to meet local customer needs for residential and commercial construction insulation products.