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Dow to invest in world-scale propylene production facility

March 07, 2012
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MIDLAND, Mich. — Dow Chemical Company announced today that its Board of Directors has authorized capital to finalize detailed engineering and purchase long lead-time equipment for a new, world-scale propylene production facility to be constructed at Dow Texas Operations, according to a press release.

This represents the latest move in the company''s comprehensive strategy to increase its ethylene and propylene production and connect its operations with low-cost feedstock opportunities available from increasing supplies of U.S. shale gas.

"This authorization marks yet another significant milestone in Dow''s comprehensive plan to create competitive advantage for our downstream Performance Materials and Advanced Materials businesses by further connecting our U.S. operations with cost-advantaged feedstocks," said Jim Fitterling, executive vice president of Dow and president of Feedstocks & Energy and Corporate Development.

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.

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