Dow to Proceed with Polyols Capacity Expansion in Terneuzen

Selects Jacobs Engineering for Detailed Engineering Phase

Midland, MI.-Dow Polyurethanes, a business group of The Dow Chemical Company, announced today that it will move forward with the detailed engineering phase of the name-plate capacity expansion of its polyols plant in Terneuzen, The Netherlands. The company has selected Jacobs Engineering, a design contract firm based in The Netherlands, to handle the engineering needs of the project.

Dow announced in March of this year that it had completed a feasibility study to increase polyols production at the facility by 180 kilotons per annum (KTA). Dow expects to begin work on the expansion in early 2008, with completion shortly thereafter.

“This significant polyols expansion underscores Dow’s commitment to strengthen its position in Europe, with a focus on driving the growth of its Performance businesses throughout the region,” said Doug Warner, business director for polyols, Dow Polyurethanes. “Our decision to undertake an expansion at this facility is driven by demand for Dow polyols in downstream markets and strong customer interest in our specialty polyols and polyurethanes systems products.”

Raw materials for the polyols produced at the site will be sourced from the 300 KTA joint Dow and BASF hydrogen peroxide to propylene oxide (HPPO) facility currently under construction in Antwerp, Belgium. That facility is scheduled to come online in 2008. Propylene oxide (PO) is a raw material used in the manufacture of polyols.

Polyols are used to make polyurethanes products and systems formulations for a variety of end-use markets including automotive, appliances, coatings, adhesives, sealants, elastomers, construction, footwear, furniture and bedding.