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

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Apr 21, 2022, 06:05 ET

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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Certain statements in this report are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.

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