Dow (NYSE: DOW) announced its plans to expand its global alkoxylation capacity in the U.S. and Europe to meet increasing demand across a wide range of fast-growing end-markets where the Company is delivering 10% to 15% annual growth rates, from personal care and home to industrial and institutional cleaning solutions and pharmaceuticals.
Maintaining Current Carbon Emissions Levels
The faster-payback, higher return investments announced will increase Dow's capacity, while maintaining current carbon emissions levels through the use of efficient technologies and site improvements.
These investments in the U.S. and Europe are backed by supply agreements with customers, including leading consumer brands, and are expected to come online in 2024 and 2025, respectively.
Dow's versatile alkoxylation assets upgrade basic materials science building blocks to produce safe and sustainable ingredients for cosmetics, household and industrial cleaning, home, and personal care, crop defense, oil and gas, pharmaceuticals, paints, and many other products for everyday use in a number of product lines, including TERGITOL™, UCON™, ECOSURF™, and CARBOWAX™ SENTRY™.
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We have consistently seen increased demand for our alkoxylation capabilities aligned to industry sectors growing faster than GDP across the cycle," said Brendy Lange, business vice president of Dow Industrial Solutions. "
These latest investments are another demonstration of our commitment to customer collaboration and innovation backed by industry-leading integration."
The announcement builds on the Company's alkoxylation capacity expansions announced in 2018 in Louisiana and in 2019 in Spain, which are both on track to come online this year. In total, these and other efficiency projects are expected to generate more than 150 million dollars in run-rate EBITDA by 2025, with returns greater than 20%. Collectively, Dow's investments will result in approximately 70% global capacity growth for Dow and its customers by 2020.
Source: Dow