70%! Dow Announced That It Will Increase The Production Capacity of This Type of Product!

The addition of new capacity will support growth in major global end markets at 10% to 15% annual growth rate

Increase the company's total global alkoxylation product capacity by 70% compared to the 2020 baseline, on top of previously announced capacity expansions

This higher and faster return project is expected to start production in 2024 and 2025

On April 21, 2022, Dow announced plans to expand its global alkoxylation product capacity in the U.S. and Europe to meet a wide range of rapidly growing end-market demands. The expansion of capacity is mainly from products in the home and personal care, pharmaceutical industry and institutional cleaning solutions, and the annual growth rate of capacity is 10% to 15%.

The announced investment will effectively increase Dow's production capacity while maintaining current carbon emissions levels through the use of efficient technologies and site improvements. It is worth mentioning that this investment by Dow in the United States and Europe has been supported by customers including leading consumer brands, and the project is expected to be put into production in 2024 and 2025, respectively.

"Demand for our alkoxylate products is increasing, which is also in line with an industry sector that is growing faster than GDP," said Brendy Lange, vice president of Dow's Industrial Solutions business. A testament to our commitment to customer collaboration and innovation, backed by industry-leading integration."

The expansion builds on the alkoxylation capacity expansions announced in Louisiana in 2018 and in Spain in 2019, both of which will be commissioned this year, according to the company.

Collectively, these and other energy efficiency projects are expected to generate more than $150 million in EBITDA by 2025, a return of more than 20%. In addition, the investment will result in approximately 70% global capacity growth for Dow and its customers since 2020.

It can be said that Dow's multi-purpose alkoxylation products elevate the building blocks of basic materials science for cosmetic, household and industrial cleaning, home and personal care, crop defense, oil and gas, pharmaceuticals, coatings and many other everyday uses. Products offer a range of ingredients that are produced safely and sustainably.

These alkoxylated products include surfactants, polyethylene glycols, PAG lubricants and other products under the grades TERGITOL™, UCON™, ECOSURF™ and CARBOWAX™ SENTRY™.