Year end shutdown of Dow’s Styrene Monomer and Ethylbenzene plants in Freeport
September 11/2009
September, 11 (plastemart.com) -- As part of a broad restructuring plan announced in June 2009, Dow Chemical Company will close styrene monomer and ethylbenzene production units at its Dow
Texas Operations site in Freeport, Texas by the end of the year. The
restructuring plan has been 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 andstyreneenvelopes,"
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%. As a result, Dow expects to eliminate its purchase ofethylene from the merchant market (approximately 3 bln lbs 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.
