Dow says it 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. The investments reportedly will increase Dow's capacity, while maintaining current carbon emissions levels through the use of efficient technologies and site improvements. The 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, according to the company.
"We have consistently seen increased demand for our alkoxylation capabilities aligned to industry sectors growing faster than GDP across the cycle," says Brendy Lange, business vice president of Dow Industrial Solutions.
The announcement builds on the company's alkoxylation capacity expansions announced in 2018 in Louisiana and in 2019 in Spain, which reportedly are 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%, according to the company. Collectively, Dow says its investments will result in approximately 70% global capacity growth for the company and its customers since 2020.
Dow's alkoxylation offerings 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, according to the company.
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