Midland, MI - August 31, 2006
Dow Chemical Canada Inc. announced today that the global Chlor-Alkali and Chlor-Vinyl businesses will close their chlor-alkali and direct chlorination ethylene dichloride (DC-EDC) production facilities at Fort Saskatchewan, Alberta by October 31, 2006. The facilities produce chlorine, caustic soda, hydrogen and hydrochloric acid. Dow’s capacity at Fort Saskatchewan is approximately 990 million pounds of chlorine, 1.1 billion pounds of caustic soda and 1.4 billion pounds of EDC.
“This decision follows a thoughtful and prudent cost-benefit analysis taking into consideration the changing EDC business and market conditions, combined with high and volatile energy and feedstocks costs in North America, the age of the plants and Dow’s cost to upgrade them, and future returns on investment,” says Rich Wells, Vice President for Dow’s Chlor-Alkali Business.
“However, Dow intends to remain a global leader in the chlorine industry,” Wells continued.
Approximately 100 Dow positions and about 70 contractor positions at the site will be affected by the closure.
To continue to serve its caustic soda customers in Western Canada, Dow will use its unparalleled strengths in logistics capabilities to supply material from other Dow facilities and sources.
All of the chlorine produced at the facility is used on-site to produce ethylene dichloride and hydrochloric acid. Hydrochloric acid is used in the oil and gas industry to improve yields. Caustic soda is an essential ingredient in an array of industrial operations, including pulp and paper, textiles, soap and detergents, bleach, petroleum products and alumina, along with many other uses in the chemical processing industry. The predominant use in Western Canada is in pulp production.
About The Dow Chemical Company
Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
For Editorial Information:
Jeannine Sohayda
The Dow Chemical Company
(989) 636-8485
