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Dow and Solvay Form Joint Venture to Build Hydrogen Peroxide Plant in Thailand; Dow and BASF Continue to Pursue Plans for Thailand HPPO Plant


The Dow Chemical Company (NYSE: Dow) and Solvay S.A. (Solvay) announced today an agreement to create a joint venture for the construction of a hydrogen peroxide (HP) plant in Thailand. Scheduled to be operational in 2010, the new HP plant will serve as a raw material source for the manufacture of propylene oxide (PO). The HP plant will be the largest in the world, with a capacity of over 330 kilotons per annum (KTA) of hydrogen peroxide at 100% concentration. The hydrogen peroxide supplying the process is based on Solvay’s proprietary, high-yield hydrogen peroxide technology.

In addition, Dow and BASF Aktiengesellschaft (NYSE: BASF) are advancing negotiations for the construction of a world-scale, 390 KTA propylene oxide (PO) manufacturing facility in Map Ta Phut, Thailand. The new plant would use the innovative hydrogen peroxide to propylene oxide (HPPO) technology jointly developed by Dow and BASF. “This project would expand our successful cooperation with Dow and Solvay to deploy this innovative HPPO technology in Asia,” said Jacques Delmoitiez, president of BASF’s Polyurethanes division.

The Dow and BASF Thailand facility would be the second world-scale plant to use HPPO technology. The first, a 300 KTA Dow and BASF HPPO plant, also supplied by an HP plant based on Solvay’s high yield technology, is currently under construction in Antwerp, Belgium, and is scheduled for start-up in early 2008. Propylene oxide is used to produce propylene glycol, polyurethanes and glycol ethers.

“Thailand is an attractive location for an HPPO investment due to its fertile business climate and easy access to the entire Asia-Pacific region,” said Pat Dawson, president of Dow Polyurethanes. “This new facility will further support Dow’s growth plans for our downstream performance businesses in the region such as Dow Polyurethanes and is yet another example of our commitment to meeting the needs of our customers through establishing joint ventures with strategic partners, using an asset-light investment approach. In addition, the fact that HPPO technology offers environmental benefits such as reduced wastewater and increased energy efficiency underscores Dow’s commitment to sustainability, as outlined in our 2015 Sustainability Goals.”

Propylene for the proposed HPPO facility in Thailand would be supplied from the liquids cracker that Dow announced it was building jointly with The Siam Cement Group (SCG) in Thailand in October of 2006. The liquids cracker facility is expected be fully operational in 2010.

“The hydrogen peroxide plant will implement the latest developments of Solvay’s unique high yield technology,” said Eric Mignonat, general manager for Hydrogen Peroxide at Solvay. “Solvay has been active in the Asian hydrogen peroxide market since 1988 through its Thai affiliate, Peroxythai, a leading supplier of peroxygen chemicals in Asia with the majority of its sales outside Thailand. A significant share of the capacity of the new plant will be available to support further development of Solvay’s Hydrogen Peroxide business within this fast growing region.”


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