Dow announces new alkoxylation capacity in U.S. and Europe to meet continued robust demand growth

• New capacity to support global growth in key end-markets delivering 10% to 15% annual growth rates
• Builds on previously announced capacity expansions, increasing Company's global alkoxylation capacity by 70% vs. 2020 baseline, collectively
• Higher return and faster-payback projects expected to come online in 2024 and 2025

MIDLAND, Mich., April 21, 2022 /PRNewswire/ -- Dow (NYSE: DOW) announced today 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 home and personal care to industrial and institutional cleaning solutions and pharmaceuticals.

The faster-payback, higher return investments announced today 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 expected to come online in 2024 and 2025, respectively.

"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."

Today's 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 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 since 2020.

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™.

About Dow
Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $55 billion in 2021. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

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Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow and TDCC assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

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SOURCE The Dow Chemical Company