Dow announces plans for $400 million investment in Midland - WNEM TV 5

Dow announces plans for $400 million investment in Midland

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MIDLAND, MI (WNEM) -

Dow has announced plans to invest an additional $400 million in its Midland operations.

The move was announced Thursday during a stockholder meeting and is part of the company’s five-year plan for local and worldwide improvements.

Plans call for the money to be poured into supporting the transformation of Midland’s manufacturing operations, to allow for better integration of Dow and Dow Corning’s manufacturing operations.

Recently Dow announced that it will invest in a new $100 million innovation center at its global headquarters in Midland.

The center will house scientists and engineers who will focus on developing solutions for home and personal care products, among other things.

Worldwide Dow plans to invest more than $12 billion over a 10-year period and is expected to employ around 5,500 workers at its peak, with 300 permanent jobs.

Investments in the U.S. will create the most jobs, with 3,500 construction and 200 full-time technical, vocational and professional careers anticipated to be created.

“Today’s announcement underscores Dow’s commitment to driving the next-phase of our growth through a comprehensive set of investments that will benefit our shareholders, customers, employees and the communities in which we operate,” said Andrew Liveris, Dow’s chairman and chief executive officer. “Manufacturing plays a vital role in driving economic growth and prosperity across virtually all sectors of society. The positive investment environment in the U.S. chemical and materials sector, driven by competitive feedstocks and a skilled workforce, is a driver for Dow to further invest in the USA.”

The investments are expected to be phased in beginning in 2020. Below is a list of components to the plan:

  • Expansion of the capacity of Dow’s new TX-9 ethylene cracker through the addition of two furnaces, bringing the facility’s total ethylene capacity to 2 million metric tons and making the TX-9 cracker the largest ethylene facility in the world.
  • Construction of a world-scale 600,000 metric ton polyethylene unit in the U.S. Gulf Coast based on Dow’s proprietary Solution Process technology. This new capacity will address consumer-driven demand in specialty packaging, health and hygiene, and industrial and consumer packaging applications.
  • Dow will pursue a series of investments to strengthen its Polyurethanes franchise aimed at driving downstream specialty polyols and systems growth and infrastructure enhancements.
  • The Company will undertake a series of incremental debottleneck projects across its global asset network that will deliver approximately 350,000 metric tons of additional polyethylene, the majority of which will be in North America.
  • Construction of a new catalyst production unit for key catalysts licensed by Univation, a wholly-owned subsidiary of Dow, enhancing Univation’s licensing model.
  • Construction of a world-scale 450,000 metric ton polyolefins facility in Europe. This capacity addition will maximize the value of Dow’s ethylene integration in the region and serve growing demand for high-performance pressure pipes and fittings, as well as caps and closures applications.
  • The Company will pursue additional investments to benefit from shale gas economics, further enhancing feedstock flexibility and reducing volatility from these advantaged inputs.
  • Dow will further enhance its Pack Studios, the Company’s global network of packaging experts, equipment and testing capabilities that accelerates the collaborative development of better packaging. Over the next two years, Dow will drive several advancements in the U.S. and globally in polyethylene and adhesive innovations and rapid prototyping, strengthening the Company’s position as the preferred development partner for packaging innovation.
  • Dow will invest an additional $400 million to support the transformation of its Midland, Michigan manufacturing operations, enabling further synergies from the integration of Dow and Dow Corning’s manufacturing operations as a result of the recent restructuring of Dow Corning’s ownership.
  • Dow also recently announced it will invest in a new, $100 million state-of-the-art innovation center at its global headquarters in Midland, Michigan. The center will house scientists and engineers who will focus research and development activities on advancing solutions for home and personal care products; broadening Dow’s energy-saving building technologies; enhancing materials for critical infrastructure; and driving closer partnerships with automakers as they further accelerate efforts to light-weight automobiles and develop hybrid, electric and autonomous transportation solutions. 

To read Dow's full press release, click here.

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