SCG-Dow Group breaks ground on Propylene Oxide plant in Thailand

12-Jun-08

The SCG-Dow Group has broken ground on a 390,000 tpa propylene oxide (PO) facility in Thailand. The world-scale plant, located within the Asia Industrial Estates (AIE) site near Map Ta Phut, is a joint venture between Dow and The Siam Cement Group (SCG). Propylene Oxide will be produced via the innovative hydrogen peroxide to propylene oxide (HPPO) technology jointly developed by Dow and BASF. The PO plant, which will also include propylene glycol (PG) manufacturing, is expected to come online in 2011. Feedstock for the PO plant will come from the SCG-Dow joint-venture liquids cracker at Map Ta Phut, scheduled for completion in 2010. Hydrogen Peroxide feedstock for the plant will be sourced from the newly announced Dow-Solvay S.A. JV located within the AIE site. With a capacity of 330,000 tpa of HP at 100% concentration, the new HP plant will be the largest in the world. The HP will be produced using Solvay's proprietary, high-yield HP technology and supply both the PO plant and Solvay's regional subsidiary, Peroxythai Ltd., which will use the additional product to meet growing customer demand. Operations for the HP plant are scheduled to begin prior to the start up of the PO plant. Economies in the region continue to grow at double digit rates, making Asia Pacific an attractive location for investments by Dow. These long term strategic investments will support the continued growth of Dow's performance businesses, such as Polyurethanes, by ensuring better availability of material in these markets.