Dow to permanently close Texas LDPE plant due to glut

13-Feb-09

The Dow Chemical Company has announced to shut operations at its Poly 2 LDPE plant in Freeport, Texas by March 2009 due to downturn in economy and LDPE glut in the North American market. The idling of the Poly 2 plant - comprising of the three autoclave low density reactors with a combined capacity of 225 million lbs - will affect 40 people. However, Dow and its affiliates continue to operate 25 polyethylene plants around the world, and remain the world's largest producer of polyethylene. "The Basic Plastics business carefully evaluated several options, but the supply-demand outlook for LDPE in North America, combined with the age, cost position and the relatively old technology of the Poly 2 plant as well as the need for additional investment do not make continued operation a viable option," said Pieter Platteeuw, Global Business Director, LDPE.