Midland, MI - March 21, 2005
The Dow Chemical Company has announced a planned 20,000 metric ton global expansion for the production of its METHOCEL* methylcellulose (MC) and hydroxypropyl methylcellulose (HPMC) products. This multi-phase expansion plan focuses on Dow's continued global leadership and commitment to the industrial and premium marketplace for water soluble polymers.
The first phase involves increasing production by 3,000 metric tons at Dow's Stade, Germany facility. This project is currently underway and will be completed in early 2006. This is the second recent expansion at the Stade facility, with a full new train brought on-stream in 2003.
In North America, Dow intends to implement an additional 17,000 metric tons of production between Dow's two facilities in Midland, Michigan and Plaquemine, Louisiana. The overall building materials industry continues to grow in excess of 6% per year in North America, and these expansions will ensure continuous support of this industry well into the future. In addition, plans also include enhanced capabilities for manufacturing premium and specialized grades of Dow products in support of the pharmaceutical, food and industrial specialties businesses. Dow is anticipating the Midland facility start-up to be in 2007, while Plaquemine is planned for 2007/2008, subject to state and local tax incentives.
Marty Kollmeyer, global business director for METHOCEL cellulosics products at Dow, comments, "This action is consistent with our strategy to invest in our cellulosics business and grow our position in all market segments on a global basis. A global expansion of this magnitude is a significant investment to ensure we can meet our customer's needs. This decision to expand now is based on continued global demand strength across all major industries, including building materials - the largest. These expansions will also enhance our capability to provide even more specialized and premium products needed for the food and pharmaceutical businesses as well as the ability to participate in emerging new applications for these multi-functional polymers."
About METHOCEL
Dow MC and HPMC products, known as METHOCEL cellulose ethers, are used in a wide variety of industries and applications, including tile grouts and mortars, tape joint compounds, plasters, paper coatings, resins and catalytic converters. Specialized Food grades and Premium grades are used respectively as functional food ingredients and in the pharmaceutical industry as tablet coatings and in controlled release formulations. For additional information about METHOCEL cellulose ethers from Dow, please visit www.methocel.com.
About Water Soluble Polymers
Dow's Water Soluble Polymers enhance the physical properties and performance of essential consumer products including foods, personal care products, pharmaceuticals, household products, paint, and building materials, among others. Water Soluble Polymers consist of Amerchol Corporation, a wholly owned subsidiary of The Dow Chemical Company, CELLOSIZE™ hydroxyethyl cellulose, ETHOCEL* ethylcellulose resins, METHOCEL cellulose ethers, and POLYOX™ water-soluble resins. These expansion projects for METHOCEL will continue to promote Dow's global leadership in the markets served by this family of specialty polymers.
About Dow
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 Editorial Information:
Melissa Bressette
The Dow Chemical Company
(989) 636-8068
