May 11, 2017

4 Min Read
Dow Chemical to Invest Over $12B in U.S. Operations
Image courtesy of Dow Chemical

Dow Chemical announced a range of investments Thursday totaling more than $12 billion to strengthen the company’s manufacturing, packaging, and innovation operations within the United States.

“Manufacturing plays a vital role in driving economic growth and prosperity across virtually all sectors of society. 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 USA,” said the Midland, MI-based company’s chairman and chief executive officer, Andrew Liveris, in a statement.

Set to roll out over the next ten years, Dow said projects funded by the investments will commence in 2020, creating about 300 permanent positions, 3500 construction jobs, and 2000 indirect jobs.

In a press release Thursday, Dow’s head linked the company’s move to U.S. President Donald J. Trump’s pro-business policies.

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“The Trump Administration seeks to drive structural economic reform across the regulatory and tax environments, fair trade and job creation – envisioning an economy that motivates U.S. business to once again focus on domestic growth and restoring America’s long-term competitiveness,” said Liveris. “Dow’s announcement today, as well as our U.S. investments over these past many years, align with this thesis and position our company to continue strengthening the manufacturing sector and many industries it supports.”

Major components of the plan include, per Dow’s release:

  • Expansion of the capacity of Dow’s new TX-9 ethylene cracker through the addition of two furnaces, bringing the facility’s total ethylene capacity to 2 million metric tons and making the TX-9 cracker the largest ethylene facility in the world.

  • Construction of a world-scale 600,000 metric ton polyethylene unit in the U.S. Gulf Coast based on Dow’s proprietary Solution Process technology. This new capacity will address consumer-driven demand in specialty packaging, health and hygiene, and industrial and consumer packaging applications. 

  • Dow will pursue a series of investments to strengthen its Polyurethanes franchise aimed at driving downstream specialty polyols and systems growth and infrastructure enhancements. 

  • The Company will undertake a series of incremental debottleneck projects across its global asset network that will deliver approximately 350,000 metric tons of additional polyethylene, the majority of which will be in North America. 

  • Construction of a new catalyst production unit for key catalysts licensed by Univation, a wholly-owned subsidiary of Dow, enhancing Univation’s licensing model.

  • Construction of a world-scale 450,000 metric ton polyolefins facility in Europe. This capacity addition will maximize the value of Dow’s ethylene integration in the region and serve growing demand for high-performance pressure pipes and fittings, as well as caps and closures applications.

  • The Company will pursue additional investments to benefit from shale gas economics, further enhancing feedstock flexibility and reducing volatility from these advantaged inputs.

  • Dow will further enhance its Pack Studios, the Company’s global network of packaging experts, equipment and testing capabilities that accelerates the collaborative development of better packaging. Over the next two years, Dow will drive several advancements in the U.S. and globally in polyethylene and adhesive innovations and rapid prototyping, strengthening the Company’s position as the preferred development partner for packaging innovation.

  • Dow will invest an additional $400 million to support the transformation of its Midland, Michigan manufacturing operations, enabling further synergies from the integration of Dow and Dow Corning’s manufacturing operations as a result of the recent restructuring of Dow Corning’s ownership.

  • Dow also recently announced it will invest in a new, $100 million state-of-the-art innovation center at its global headquarters in Midland, Michigan. The center will house scientists and engineers who will focus research and development activities on advancing solutions for home and personal care products; broadening Dow’s energy-saving building technologies; enhancing materials for critical infrastructure; and driving closer partnerships with automakers as they further accelerate efforts to light-weight automobiles and develop hybrid, electric and autonomous transportation solutions.

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