Dow Polyurethanes to Increase Specialty Polyols Capability in Freeport, Texas

Investment solidifies commitment to North American polyurethanes industry

Midland, MI.-Dow Polyurethanes, a business group of The Dow Chemical Company, announced today it will add 130 million pounds or approximately 59 kilotons per annum (KTA) of specialty mix polyols capability at its manufacturing facility in Freeport, Texas. Scheduled to come on stream in early 2009, the additional capability will support growing demand for end-use polyurethanes products and polyurethane systems formulations in North America.

“We’re seeing solid growth in all aspects of our business, but are particularly encouraged by growing customer interest in our low-amine emissions VORANOL™ VORACTIV™ polyols, as well as customized systems formulations that offer specific performance benefits in key applications,” said Doug Warner, business director for Dow Polyols, a business unit within Dow Polyurethanes. “The additional polyols capability Dow is investing in at our Freeport facility is further assurance for our North American customers that they can focus on innovating and growing in downstream markets while working with Dow as a reliable supplier they have come to depend on.”

According to the North American Free Trade Agreement, polyols consumption in North America is estimated at 2.9 billion pounds, with an annual growth rate comparable to Gross Domestic Products (GDP). Growth is driven primarily by demand in automotive, coatings, adhesives, sealants and elastomers (CASE), specialty foams for the furniture and bedding industries as well as appliance applications.

Dow continues to strengthen its position as a leading supplier of polyols and polyurethane products throughout North America. In early 2007, Dow announced its plans to expand MDI production in Freeport by 50 percent over the next three years. Expected to be completed in 2009, the expansion will bring an additional 250 million pounds of MDI production name-plate capacity to the Company’s world-class facility, which came on stream in 2005.