News | May 2, 2005

Dow To Build New Phenolic Glycol Ether Production Unit In Freeport

Investment Demonstrates Dow's Commitment to Oxygenated Solvents

MIDLAND, MI – The Dow Chemical Company today announced plans to build a new phenolic glycol ether production unit in Freeport, Texas, to meet the changing needs of its performance solvents customers. The new unit, which will come on-line in the third quarter of 2006, will replace existing capacity in Midland, Mich.

The new unit will produce DOWANOL* EPh and PPh and will be designed to meet immediate and forecast demand for these fast-growing performance solvents. The facility will incorporate the latest technology resulting in an improvement in product quality and consistency. One of the key factors behind the decision to build the new unit in Freeport is easier access to key raw materials – phenol, ethylene oxide (EO) and propylene oxide (PO).

"Dow is the world's largest producer of glycol ethers, and as such, we are committed to meeting our customers' needs for more capacity and higher quality performance solvents," says Martin Sutcliffe, global business director, Glycol Ethers "We will continue to pursue additional options to meet increased demand for EO- and PO-based glycol ethers around the world."

"This project and the upgrade to the Oxo and Isopropanol units in Texas City demonstrate our ongoing commitment to deliver a reliable supply of quality oxygenated solvents to our customers around the world, where and when they need it," says Ted Cosse, vice president, Acrylics, Solvents & Intermediates. The Texas City facilities are owned and operated by Union Carbide Corporation, a wholly owned subsidiary of the Dow Chemical Company.

Dow offers the broadest line of Oxygenated Solvents in the industry and is the market leader in oxygenated solvent products used in paints and coatings, cleaning products, inks and electronics. Dow offers a full range of ethylene-based and propylene-based glycol ether products, including DOWANOL* glycol ethers, and CELLOSOLVE and CARBITOL solvents, as well as our family of UCAR™ n-Alkyl Propionates. Production locations are in Hahnville, La; Plaquemine, La.; Midland, Mich.; Seadrift, Texas; Texas City, Texas; Insitute, W.Va.; San Lorenzo, Argentina; Stade, Germany; and Kerteh, Malaysia (OPTIMAL).

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. For more information, visit our business web site at www.dowsolvents.com.

Source: Dow Chemical Company