Dow Moves Forward with Expansion Plans for Cellulosics

30-Mar-2006

The Dow Chemical Company continues to make progress with its plans to increase cellulosics capacity at production facilities in Midland, Michigan; Plaquemine, Louisiana and Stade, Germany. As announced in March 2005, the expansions will enable an additional 20,000 metric tons of METHOCEL(TM) cellulose ethers to be produced. 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 de-bottlenecking of current production capabilities at Dow's Stade, Germany facility. This phase is currently underway and will be completed in 2006. This is the second recent expansion at the Stade facility, with a full new train brought on-stream in early 2003.

Dow's North American facilities are the focus of the second phase of the project, with the first expansion in Midland. The equivalent of a full-train expansion will be achieved by installation of new post reactor processing equipment through optimization of our current assets. This project has received support for state and local tax incentives to move forward on an aggressive schedule for start-up in 2007. Expansion in Plaquemine will follow the Midland project and will include the first North American train capable of manufacturing hydroxyethyl methyl cellulose (HEMC). Dow is anticipating the Plaquemine facility start-up to occur in 2008.

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