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Dow announced to expand silicones business to accelerate innovation and support global demand.
Dow announced to expand silicones business to accelerate innovation and support global demand.

The Dow Chemical Company (Dow) just announced new low capital intensity, high return investments in its upstream and downstream silicones franchise to accelerate innovation and support global customers’ demand in high growth markets, such as high performance building, home and personal care, electrical and industrial, consumer goods and components assembly.

The investment plans include three aspects. Firstly, a series of incremental siloxane debottleneck and efficiency improvement projects over the next three years to further increase capacity and efficiency in Dow’s siloxane manufacturing facilities around the world.

Secondly, a new hydroxyl functional siloxane polymer plant in Carrollton, Kentucky, which will increase Dow’s polymer capacity in the Americas by 65%, providing the new technology to accelerate innovation with customers.

Thirdly, additional expansion projects to increase capacity in Dow’s high-value performance silicones products and intermediates. This includes a new specialty resin plant in Zhangjiagang, Jiangsu, China, which will provide resin intermediates for high value silicone products, including home and personal care, pressure sensitive adhesives, antifoams, and moldable optics for lighting.

The projects we are announcing support our ability to continue to meet strong global demand for Dow’s silicones materials, enabling us to grow and innovate more quickly with customers and advancing our leading positions in our targeted end-markets,” said Jim Fitterling, chief executive officer of The Dow Chemical Company and chief operating officer for the Materials Science Division of DowDuPont.

“Further, these targeted investments are expected to deliver fast paybacks and higher return on invested capital for Dow, contributing to greater earnings and cash generation, Fitterling added.

In addition, the company also announced the start of a feasibility study for the construction of a new, world-scale siloxane plant. The geographic location of the new proposed siloxane facility will be determined as an outcome of the feasibility study.

According to Mauro Gregorio, business president, Dow Consumer Solutions, as an essential addition to Dow’s global silicones manufacturing footprint, the proposed new siloxane plant will expand the company’s access to differentiated monomers and intermediates around the world, while strengthening its capabilities to accelerate and execute strong innovation pipeline.

Dow already operates nearly 20 silicones manufacturing facilities globally, including three world-scale siloxane manufacturing facilities, located in Carrollton, Kentucky, U.S.A., Barry, Wales, United Kingdom and Zhangjiagang, Jiangsu, China.

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