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Dow to expand four plastic franchises in US

The Dow Chemical Company is all set to expand four of its plastic franchises in Texas and Louisiana, as part of its investment strategy on the US Gulf Coast to integrate advantaged shale gas.

The company will expand its High Melt Index (HMI) AFFINITY brand polymer franchise in Freeport, Texas. The materials are said to deliver better bonding in hot melt packaging adhesives.

Dow’s ELITE polymer franchise, which delivers improved durability and flexibility for food packaging, hygiene & medical, and industrial and consumer packaging markets, will also be expanded.

According to the company, both the brands are powered by its INSITE catalyst technology.

Dow will expand its NORDEL metallocene EPDM franchise with next generation technology in Plaquemine, Louisiana, where Low Density Polyethylene (LDPE) family of polymers such as AGILITY will also be expanded.

The polymers deliver improved optics for applications in flexible food packaging.

The actions, together with the company’s collective, high-return investments in the region, are expected to drive revenue growth and generate about $2.5bn in earnings before interest, taxes, depreciation, and amortization (EBITDA) upon commencement of operations.

Dow will also be able to address growing global customer and value chain demand in markets such as food packaging, transportation and infrastructure, among others.

Dow executive vice president Jim Fitterling said, "Dow Performance Plastics is the world’s leading plastics franchise and with these expansions Dow will be able to further leverage our cost-advantaged position and R&D expertise to deliver leading edge technology that provides a competitive benefit to our customers in many of our most strategic markets."

Initially announced in March 2013, the investments are aligned with Dow’s Performance Plastics franchise.