Dow Epoxy Receives Environmental Impact Assessment Approvals for Two Proposed Plants in Shanghai

Dow Epoxy, a business unit of The Dow Chemical Company (“Dow”), has reached a significant milestone in its plans to build a 100,000 MTPA liquid epoxy resin (LER) plant and a 150,000 MTPA glycerine-to-epichlorohydrin (GTE) plant at Shanghai Chemical Industry Park (SCIP) by the end of 2010 – the approval of environmental impact assessments (EIA) by China’s Ministry of Environmental Protection.

“It was a thorough and robust process that we went through and we’d applied the highest of Dow standards to our proposed plants at SCIP,” said Noelle Walsh, global business director, Liquid Resins & Intermediates, Dow Epoxy. “We are pleased to have reached this milestone, which brings us one step closer to actual construction. We can only execute our growth plans, and be a sustainable business, with environmental excellence as our foundation.”

EIA is a method and system adopted by China’s Ministry of Environmental Protection to assess the possible environmental impact—positive or negative—of a proposed project. The EIA allows the Ministry to propose countermeasures to prevent or mitigate adverse environmental impacts. All proposed chemical projects in China must obtain approvals for an EIA before construction.

The LER and GTE plants will further strengthen Dow Epoxy’s ability to meet growing customer needs in China, particularly in its core markets of coatings, electrical laminates and civil engineering. They are on track to be completed in 2010 and 2011 respectively.

The LER plant will be the first world-wide that will recycle the purified, salt water byproduct as feedstock to the chlorine plant in the chemical complex instead of discharging into the sea.

“With our proprietary GTE technology, we will cut chlorine consumption in half and produce 10 times less waste water, while also improving process efficiency and product quality,” said Walsh. “This technology is a prime example of Dow’s commitment to significantly reduce and conserve energy as part of its 2015 Sustainability Goals.”

Dow’s proprietary GTE technology is distinct from and an alternative to any GTE technology practiced today. Dow is actively pursuing patent protection on its developed GTE technology and will continue to file numerous patent applications to ensure a strong intellectual property position.

About Dow Epoxy and Dow Epoxy Systems
Dow Epoxy is one of the world’s largest epoxy resins and intermediates manufacturers, with strong positions in a number of major application areas, including coatings, electrical laminates and civil engineering. Dow Epoxy, through a new business unit known as Dow Epoxy Systems, also serves as a formulator for users of specialty epoxy systems in many industries, including civil engineering and infrastructure, composites, wind energy and others. More information about products and solutions from Dow Epoxy is available at www.dowepoxy.com and www.dowepoxysystems.com.

About Dow

With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the “ Human Element ” to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.