Worldwide

Dow to Proceed with Polyols Capacity Expansion in Terneuzen
Selects Jacobs Engineering for Detailed Engineering Phase

Midland, MI - September 17, 2007

Dow Polyurethanes, a business group of The Dow Chemical Company, announced today that it will move forward with the detailed engineering phase of the name-plate capacity expansion of its polyols plant in Terneuzen, The Netherlands.   The company has selected Jacobs Engineering, a design contract firm based in The Netherlands, to handle the engineering needs of the project.

Dow announced in March of this year that it had completed a feasibility study to increase polyols production at the facility by 180 kilotons per annum (KTA). Dow expects to begin work on the expansion in early 2008, with completion shortly thereafter.  

“This significant polyols expansion underscores Dow’s commitment to strengthen its position in Europe, with a focus on driving the growth of its Performance businesses throughout the region,” said Doug Warner, business director for polyols, Dow Polyurethanes. “Our decision to undertake an expansion at this facility is driven by demand for Dow polyols in downstream markets and strong customer interest in our specialty polyols and polyurethanes systems products.”

Raw materials for the polyols produced at the site will be sourced from the 300 KTA joint Dow and BASF hydrogen peroxide to propylene oxide (HPPO) facility currently under construction in Antwerp, Belgium. That facility is scheduled to come online in 2008.  Propylene oxide (PO) is a raw material used in the manufacture of polyols.

Polyols are used to make polyurethanes products and systems formulations for a variety of end-use markets including automotive, appliances, coatings, adhesives, sealants, elastomers, construction, footwear, furniture and bedding.

About Dow Polyurethanes

Dow is the world’s largest producer of propylene oxide, polyether polyols, and a leading producer of quality aromatic isocyanates, such as MDI and TDI. Dow’s polyurethanes products and formulated systems are used in rigid foams, flexible foams, adhesives, sealants, coatings and elastomers, as well as many other applications. Dow also offers the latest in polyol technology with its VORANOL™ VORACTIV™ polyols, part of an ongoing initiative by Dow to lead the industry in providing high-performance products with reduced volatile organic compound (VOC) emissions. For more information, visit www.dowpolyurethanes.com, www.pusystems.com and www.voractiv.com.

About Dow

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For Editorial Information:

Myra Dean
The Dow Chemical Company
1 989 638 6969

Urszula Murphy
Gibbs & Soell, Inc.
+1 212 697 2600, ext. 1296