Dow Announces Plans to Suspend Production at Union Carbide Polypropylene Manufacturing Facility in Louisiana

The Dow Chemical Company (TDCC) today announced that Union Carbide Corporation (UCC), a wholly-owned subsidiary of TDCC, will suspend production at its polypropylene manufacturing facility at St. Charles Operations in Hahnville, Louisiana, in anticipation of an expected decision to shut down the facility by year end.

“The closing of the St. Charles Operations polypropylene plant is a difficult decision, but due to a number of factors, including the inability to secure a source of economically sustainable propylene, the use of older technologies at the plant and needed capital improvements to maintain operations to Dow standards, it will be unavoidable,” said Julie McAlindon, Dow Polypropylene Global Business Director.

The planned shutdown of the facility will impact approximately 60 employees. It is expected that a large majority of those employees will be redeployed to other roles at St. Charles Operations.

Dow has begun its communication with suppliers and customers to facilitate the shutting down of the plant within the specified timetable. Dow will fulfill contractual obligations appropriately, but may not be able to maintain the current level of supply to all customers.

The St. Charles site was part of the transaction in which TDCC acquired UCC in 2001. The polypropylene plant has a capacity of 500/MM lbs.

Polypropylene is used in a wide range of applications, including films, health and hygiene, rigid and flexible packaging, automotive and consumer durables.