Capacity to support and advance downstream systems growth in construction, consumer, and industrial systems markets; Dow to exit and shut down its polyurethane assets at La Porte, Texas operations
Dow (NYSE: DOW) announced plans to build an integrated MDI distillation and prepolymers facility at its world-scale manufacturing site in Freeport, Texas. This investment supports increasing demand for downstream polyurethane systems products and advances Dow’s leading positions in attractive applications in construction, consumer, and industrial markets that are growing above GDP.
The new Freeport MDI facility will replace Dow’s current North America capacity in La Porte, Texas, and will also be capable of supplying an additional 30 percent of product to Dow’s customers. In coordination with the start-up of the new MDI facility, expected in 2023, Dow will shut down its polyurethane assets at the La Porte site.
“This MDI investment optimizes our existing asset infrastructure and enhances our global polyurethanes leadership position, further enabling us to support downstream systems customers’ growth,” said Jane Palmieri, president of Dow’s Industrial Intermediates & Infrastructure operating segment. “The back integration at the Freeport site creates a cost competitive supply of key upstream polyurethane raw materials, ensures a reliable supply position to support our growth in downstream high-value polyurethane markets and delivers a more sustainable production process.”
The new facility in Freeport will reduce Dow’s carbon footprint and water usage by:
eliminating the need for the generation of thermal power by utilizing existing thermal energy from the Freeport site,
reducing water intake and wastewater discharge (through production efficiencies), and
eliminating the need for transport of raw materials.
Dow’s extensive Polyurethane Systems franchise upgrades key polyurethane components in order to produce rigid, semi-rigid and flexible foams, and coatings, adhesives, sealants, elastomers and composites for applications that range from industrial and infrastructure solutions, to consumer comfort solutions in flooring, furniture, bedding and footwear, to automotive solutions for vehicle interior, and energy-efficient insulation materials.
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