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Dow Increase Global production of Propylene Oxide and Propylene Glycol

Dow announced today that is has increased its total global nameplate production capacity for propylene oxide (PO) to more than 1,900 kilotons per annum (KTA) and total global production capacity for propylene glycol (PG) to 705 KTA. The additional capacities are the result of expansions in PO and PG production at the Stade, Germany facility, as well as low-capital cost expansions implemented at Dow’s other PG plants. Upon completion, in 2009, expansions at Stade, Germany will make it the world’s largest PG facility, with a capacity to produce 270 KTA.

“Demand for PO and PG continues to rise globally as demand for end-use applications increases, resulting in tight balances in the global industry,” said Mady Bricco, global product director, Propylene Oxide and Propylene Glycols. “To meet rising demand, we will expand our PG production at Stade through two expansion projects and have optimized operations at our other facilities, through Six Sigma, technology enhancements, process automation and other improvements. We are pleased that we were able to identify these low-capital solutions to meet our customers’ demands and support the growth of downstream businesses.”

The global 2007 capacity numbers represent an increase of 140 KTA of PG and an increase of 40 KTA in PO. Individual annual nameplate PG plant capacities (in KTA) are as follows:

Altona (Australia) 15
Aratu (Brazil) 95
Plaquemine (U.S) 190
Stade (Germany) 225
Freeport (U.S.) 180
Total 705

Effective January 2007, Dow also increased PO production at Stade to 630 KTA, an increase from 590 KTA.
“These increases to the output of our PG facilities will add additional maneuverability to Dow’s ability to manage peak demand throughout the year” said Bricco.

The increase of PG capacity at Stade is being implemented through two projects. The first expansion project, which was completed in 2007, increased PG capacity at the facility from its current 190 KTA to 225 KTA. The second project, which is planned for completion in 2009, will enable another 45 KTA of PG output from the plant.

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