Jan 31 2007
The Dow Chemical Company announced that it plans to expand production at its Freeport, Texas, MDI facility by 50 percent over the next 36 months. In September 2006, Dow also announced plans to expand MDI production at its Estarreja, Portugal, site. These two projects will significantly increase Dow’s global MDI capacity and, in effect, support the future growth plans of Dow’s performance businesses, which include Dow Polyurethanes. A strong platform for developing a range of performance products and solutions furthers Dow’s strategic portfolio shift to performance businesses.
“Demand for MDI has been growing steadily, and expanding our production capability will allow us to more effectively address the changing market needs,” said Pat Dawson, business vice president, Dow Polyurethanes. “With today’s announcement, our North American customers will have the comfort of knowing that we are well positioned to reliably meet their growing supply requirements both now and in the future.”
The Freeport MDI plant came on stream in 2005, and its original design blueprint provided for the possibility of expansion. The expansion will be executed in two stages, with the first half of increased capacity expected to be available in early 2008. When completed, the increase will account for an additional 250 million pounds of name-plate capacity per year of MDI manufactured at the Freeport site.
“The Freeport site is a world-class MDI facility with which Dow underscored its commitment to the polyurethanes industry and the rigid foam market,” continued Dawson. “The strong and steadily growing market merits further investment at this production site, and we have the capability to execute the expansion quickly and efficiently. We are very excited to bring this added capacity to our polyurethanes customers and re-affirm our leading supplier position in North America.”
MDI (diphenylmethane diisocyanate) is a major raw material used in the production of rigid polyurethane foam and polyurethane elastomers. Global market is estimated at 8 billion pounds; demand for MDI is currently growing at 6 percent to 7 percent annually, and that is expected to continue. Overall global demand is particularly strong in end-use markets such as home, commercial and industrial foam insulation, as well as refrigeration, appliances, and coatings, adhesives, sealants and elastomers..
Dow currently produces and distills MDI at the facilities in Freeport and La Porte, Texas; Yeosu, South Korea; Yokkaichi/Kinu Ura, Japan; Stade, Germany; Delfzijl, The Netherlands, and Estarreja, Portugal.