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★Annual growth rate of 10% to 15% in new capacity to support global growth in key end markets
Building on previously announced capacity expansions, increased the company's global alkoxylation capacity by 70% compared to the 2020 baseline
★Projects with higher returns and faster returns are expected to start production in 2024 and 2025
On April 21, 2022, Dow announced plans to expand its global alkoxylation capacity in the United States and Europe
.
To meet the needs of a wide range of fast-growing end markets, achieve annual growth rates of 10% to 15% in the home and personal care, pharmaceutical industry, and cleaning solutions markets
.
The faster return, higher return investments announced this time will increase Dow's production capacity while maintaining current carbon emissions levels through the use of high-efficiency technologies and site improvements
.
These investments in the U.
S.
and Europe are supported by supply agreements with customers including leading consumer brands, and are expected to start production in 2024 and 2025, respectively
.
"Demand for our alkoxylation capabilities continues to increase, matching industry sectors that have grown faster than GDP throughout the cycle," said Brendy Lange, vice president of Dow's Industrial Solutions business
.
"These latest investments are yet another testament to our A commitment to customer collaboration and innovation, backed by industry-leading integration
.
"
The announcement builds on the alkoxylation capacity expansions announced in Louisiana in 2018 and in Spain in 2019, both of which will start production this year
.
Collectively, these and other energy efficiency projects are expected to generate more than $150 million in EBITDA by 2025, a return of more than 20%
.
Overall, Dow's investment will result in approximately 70% global capacity growth for Dow and its customers since 2020
.
Dow's multipurpose alkoxylation assets upgrade basic materials science building blocks to produce safe products for cosmetic, household and industrial cleaning, home and personal care, crop defense, oil and gas, pharmaceuticals, coatings and many other product lines for everyday use , sustainable ingredients including TERGITOL™, UCON™, ECOSURF™ and CARBOWAX™ SENTRY™
.
