Dow Chemical announced plans to build several plastics facilities on the U.S. Gulf Coast to take advantage of cost-advantaged feedstocks available from increasing supplies of shale gas in North America.
The new capacity will target demand in North and South America, in addition to select export opportunities. Dow is currently exploring specific location options on the U.S. Gulf Coast, with final investment locations to be determined at a later date.
The production units include Dow's ELITE enhanced polyethylene for flexible packaging and hygiene & medical applications; specialty low-density polyethylene (LDPE) to serve the packaging and electrical & telecommunications market segments; high melt index (HMI) elastomers for Dow's AFFINITY brand of hot melt adhesives; and metallocene-based ethylene propylene diene monomer (EPDM) for transportation, infrastructure, electrical & telecommunications.
These new units will utilize building block materials from Dow's ethylene production facility in Freeport, TX, which is slated for start-up in 2017. Dow says the new facilities are in the Front End Engineering and Design (FEED) phase that will be completed in 2014.