Dow Announces $4B In New Projects

Dow Chemical has announced $4 billion in additional investments across its global network — including substantial capital projects in Europe, the U.S. Gulf Coast and its native Michigan.

The chemical giant plans to add two furnaces to the new ethylene cracker at its complex in Freeport, Texas, which would bolster its capacity to 2 million metric tons and make the Houston-area facility the largest in the world for ethylene production.

Dow also plans to build a polyethylene unit in the Gulf region to serve the packaging, health and hygiene segments and a polyolefins facility in Europe. The former will have a capacity of 600,000 metric tons, while the latter's capacity will be 450,000 metric tons.

The company's Midland, Mich., headquarters will see a $400 million overhaul of its manufacturing operations in the wake of its new $100 million research facility.

“Manufacturing plays a vital role in driving economic growth and prosperity across virtually all sectors of society," said Dow chairman and CEO Andrew Liveris. "The positive investment environment in the U.S. chemical and materials sector, driven by competitive feedstocks and a skilled workforce, is a driver for Dow to further invest in the U.S.A.”

The company will also establish a catalyst production unit for its Univation subsidiary, as well as invest in its polyurethanes franchise and free another 350,000 metric tons of additional polyethylene capacity.

The projects are scheduled to begin operating in phases over a five-year period beginning in 2020. The company expects to merge with rival DuPont later this year, but would split into three separate, publicly traded companies within two years. The materials science company will retain the Dow name and remain based in Midland.

Dow officials said that the latest announcements bring its total investment in the U.S. to $12 billion over a 10-year window. The company expects the projects to create 3,500 construction jobs and establish 200 permanent positions in the U.S.