Dow to Build New PMDI Facility at Texas Operations
The Dow Chemical Company announced today plans to build a new PMDI production facility at its Texas Operations in Freeport, Texas. Construction is scheduled to begin in 2002 and start-up is slated for late 2004. In a related move, the company also announced that it would close its PMDI facility at Houston Operations in La Porte, Texas, by 2005.
"This new construction demonstrates our focus on maintaining a leadership position in the polyurethanes industry and is strategic to our growth efforts," said David Fischer, global vice president of Dow's Polyurethanes business. "After carefully considering all options, we determined that Texas Operations would be the preferred location for Dow to build a new PMDI plant rather than reinvest in the existing PMDI plant at the La Porte site."
"As Dow's largest integrated chemical site, Texas Operations provides a world-scale, globally competitive environment for the new facility. The site was best able to meet the business' long-term needs for this facility, including excellent infrastructure and support services," said Fischer. "One of the additional benefits of building this new PMDI plant in Texas Operations is the ability for future capacity expansion."
In August 2000, Dow announced plans to increase its total PMDI capacity by 550 million pounds, effective 2004, including 500 million pounds at a new Gulf Coast facility and a 50-million pound upgrade at the La Porte facility. However, given the difficult global economic environment, the company now plans to start-up a new 500 million-pound facility at Freeport in late 2004 and close the 500 million-pound La Porte facility at roughly that time - with no net increase to capacity. The additional capacity increase announced in August is still planned but is not expected to be on-line until 2006, contingent upon industry conditions.
With the exception of a minimal reduction in shared services personnel, the Dow Fabricated Products, Engineering Plastics and Custom and Fine Chemicals businesses, also based at Houston Operations, are not expected to be impacted by the PMDI plant closure.
PMDI is currently used in appliances, forest products, and construction applications as well as in binders for agricultural fibers.
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