Sarnia, Canada - August 31, 2006
The Dow Chemical Company announced today the decision to close its Low Density Polyethylene (LDPE) production facility at Sarnia, Ontario, Canada in September 2006.
“The closing of our LDPE facility in Sarnia was a difficult decision, but due to the suspension of ethylene shipments through the Cochin Pipeline and not being able to secure an alternate source of economically sustainable ethylene it was unavoidable,” said Glenn Wright, Dow Global Business Director for LDPE.
The LDPE plant will run into early September 2006. Beyond that timeframe, Dow’s focus will be to generate as much capacity as possible from its LDPE plant in Freeport, Texas to service customer demand. Dow will fulfill contractual obligations appropriately, but may not be able to maintain the current level of supply to all customers.
In March 2006, ethylene shipments to Sarnia through the Cochin Pipeline were unexpectedly suspended by the pipeline’s owner, BP, for safety reasons. Since then identifying an alternate economically sustainable source of ethylene has been a top priority for Dow. Multiple options were looked at, including imports and other sources in the area, but none could meet Dow’s needs.
The LDPE plant at Sarnia has a capacity of 220 MM/lbs annually and employs 33 people.
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:
David Winder
The Dow Chemical Company
(989) 638-0745
Jentzel Utrera
Porter Novelli
(212) 601-8244
jentzel.utrera@porternovelli.com
