Dow to close plants in Texas
September 10, 2009
In a press release statement, the Dow Chemical Company announced it will close the styrene monomer and ethylbenzene production units at its Dow Texas Operations site in Freeport, Texas by the end of the year. The closures are part of a broad restructuring plan the Company announced at the end of June 2009, which is designed to right-size Dow''s manufacturing footprint and reduce exposure to its capital intensive Basics portfolio. Dow has secured a long-term contract for reliable styrene supply in the marketplace to meet the styrene demand of its derivative businesses. In the second quarter of 2009, Dow announced a restructuring plan, which included actions to fully integrate ethylene production with internal demand -- reducing the company''s ethylene demand on the U.S. Gulf Coast by approximately 30 percent. As a result, Dow expects to eliminate its purchase of ethylene from the merchant market (approximately three billion pounds annually) while improving the company''s cost position.