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07-09-2003: Following a comprehensive review of options based on current market conditions, Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company, has finalized the timing for the permanent shutdown of the Seadrift Olefins plant. The unit will cease operation on September 12, 2003, in line with the overall timeframe that was announced earlier this year. Environment, Health and Safety considerations will remain a top priority during the shutdown and the cleaning of the unit.
In January of this year, Bill Stavropoulos, Chairman of the Board, President and CEO of Dow, announced that Carbide would shut down its Texas City olefins plant by mid-year and its Seadrift olefins plant no later than the end of 2003. The Texas City olefins plant was safely taken out of operation on June 16, 2003. Carbide's decision to cease operations at the Seadrift olefins plant on September 12 is also in step with Dow's previously announced US Gulf Coast Ethylene Review.
Projects have been undertaken to maintain the existing integration benefits at the Seadrift site, so the site can continue to function optimally following the shutdown. Supply to downstream businesses will be covered through internal and affiliate swaps from increased production at other crackers, and through the implementation of purchase agreements already in place.
The shutdown will result in the elimination of some jobs at the Seadrift site, although an exact number has not yet been determined. A detailed workforce reduction and redeployment plan is currently being developed.
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