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Dow Chemical to build new chemical plants

By R&D Editors | April 21, 2011

Dow Chemical Co. will increase its ethylene and propylene production to cash in on higher U.S. natural gas production from shale.

The chemical company said it plans to build a new ethylene plant on the U.S. Gulf Coast that will be operational by 2017. It also plans to restart its ethylene plant near Hahnville, La., by the end of 2012.

“The improved outlook for U.S. natural gas supply from shale brings the prospect of competitively priced ethane and propane feed stocks to Dow …” Jim Fitterling, Dow’s president of corporate development and Hydrocarbons, said in a statement.

Dow also plans to build a new propylene production plant in Texas, slated to be operational by 2015.

Propylene and ethylene are chemicals used in a variety of industrial processes.

Shares of Dow rose $1.25, or 3.3 percent, to close at $39.48

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