Sponsored By

Plastics and chemicals giant Dow Chemical will build a new ethylene production plant at Dow Texas Operations in Freeport, TX.The new ethylene production facility is part of the company's $4 billion investment to grow its overall ethylene and propylene production capabilities in the U.S. Gulf Coast region, the company stated.

PlasticsToday Staff

April 19, 2012

2 Min Read
Dow to build new ethylene production plant in Texas

Plastics and chemicals giant Dow Chemical will build a new ethylene production plant at Dow Texas Operations in Freeport, TX.

The new ethylene production facility is part of the company's $4 billion investment to grow its overall ethylene and propylene production capabilities in the U.S. Gulf Coast region, the company stated.

dowfreeportjpg-049a60c0c488238f.jpgThe new ethylene cracker at Dow Texas Operations will employ up to 2000 workers at its construction peak, and is anticipated to open in 2017. During the next five to seven years, Dow estimates that this project, together with all other planned projects announced as part of the company's U.S. investment plan, will employ up to 4800 workers during peak construction and support more than 35,000 jobs in the broader U.S. economy.

Dow Texas Operations in Freeport is Dow's largest integrated manufacturing site worldwide and the largest single-company chemical complex in North America, according to Dow. With 4200 employees and 3000 contractors on site daily, Dow Texas Operations currently manufactures 44% of Dow products sold in the U.S. and more than 20% of Dow products sold globally.

"For the first time in over a decade, U.S. natural gas prices are affordable and relatively stable, attracting new industry investments and growth and putting us on the threshold of an American manufacturing resurgence," said Andrew N. Liveris, Dow chairman and CEO.

"Constructing this new ethylene cracker at Dow Texas Operations will create a long-term advantage for our downstream businesses and for our company as a whole, and the benefits will accrue not only to Dow but to the state and national economy," he said.

The company stated this move is part of Dow's previously announced comprehensive plan to further connect its U.S. operations with "cost-advantaged" feedstocks available from increasing supplies of U.S. shale gas.

Dow progresses comprehensive plan

Projects announced as part of the Company's U.S. Gulf Coast investment plan are moving forward according to schedule, the company stated.

On March 7, Dow announced that its board of directors had authorized capital to finalize detailed engineering and purchase long lead-time equipment for a new propylene production facility to be constructed at Dow Texas Operations. Basic engineering work for the new on-purpose propylene production facility at Dow Texas Operations has commenced, and the project is on track for production start-up in 2015.

In December 2011, Dow and UOP LLC, a Honeywell company, signed a technology licensing agreement, enabling on-purpose propylene production at the facility. Under the terms of this agreement, Dow will license UOP's proprietary UOP C3 Oleflex TM process technology for manufacturing on-purpose propylene from propane. Dow also signed catalyst supply and performance guarantee agreements with UOP.

Recomissioning work on an ethylene production unit at Dow's manufacturing site near Hahnville, LA is progressing as planned, and the unit is on track to restart at the end of this year.

Sign up for the PlasticsToday NewsFeed newsletter.

You May Also Like