SCG-Dow Group Breaks Ground on Propylene Oxide Plant in Thailand

11-Jun-2008

The Dow Chemical Company (Dow) announced that the SCG-Dow Group, a joint venture between Dow and The Siam Cement Group (SCG), has broken ground on a propylene oxide (PO) facility in Thailand. The world-scale plant, located within the Asia Industrial Estates (AIE) site near Map Ta Phut, will have a name plate capacity of 390 kilotons per annum (KTA) of PO via the innovative hydrogen peroxide to propylene oxide (HPPO) technology jointly developed by Dow and BASF. The PO plant, which will also include propylene glycol (PG) manufacturing, is expected to come online in 2011.

In July 2007, Dow and Solvay S.A. (Solvay) announced the formation of a joint venture to build a new hydrogen peroxide (HP) plant, which will serve as a raw material source for the new PO plant. Located within the AIE site, the new HP plant will be the largest in the world with a name plate capacity of more than 330 kilotons per annum (KTA) of HP at 100 percent concentration, according to the company. The HP will be produced using Solvay's proprietary, high-yield HP technology and supply both the PO plant and Solvay's regional subsidiary, Peroxythai Ltd., which will use the additional product to meet growing customer demand. Operations for the HP plant are scheduled to begin prior to the start up of the PO plant.

"With an economy that continues to grow at double digit rates, Asia Pacific is an attractive location for Dow," said Pat Dawson, president of Dow Polyurethanes. "These plants represent a significant strategic investment by Dow in Thailand for the long-term. Moreover, they will support the continued growth of Dow's performance businesses, such as Polyurethanes, by ensuring that customers who rely on us for materials will be better equipped to compete in their local markets. Together, with BASF, Solvay and SCG, we continue to create sustainable solutions for the production of PO that deliver greater energy efficiency, a reduced physical footprint, and improved environmental performance while also providing attractive economics."

Feedstock for the PO plant will come from the SCG-Dow joint-venture liquids cracker at Map Ta Phut, scheduled for completion in 2010. Several facilities within the AIE site, including the new PO plant, are also expected to be operated through joint venture agreements between Dow and SCG.

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