Dow to Expand Global Alkoxylation Capacity in the U.S. and Europe to Meet Growing Demand
Dow will expand its global alkoxylation capacity in the United States and Europe to meet growing demand in a wide range of fast-growing end markets where the company is experiencing annual growth rates of 10% to 15%, from home and personal care to industry and institutional. cleaning solutions and pharmaceuticals, company officials said Thursday.
Investments with faster payback and higher returns will increase Dow’s capacity, while maintaining current levels of carbon emissions through the use of efficient technologies and site improvements. These investments in the United States and Europe are supported by supply agreements with customers, including major consumer brands, and are expected to go live in 2024 and 2025, respectively.
“We have consistently seen increased demand for our alkoxylation capabilities aligned with industry sectors that are growing faster than GDP throughout the cycle,” said Brendy Lange, commercial vice president of Dow Industrial Solutions. “These latest investments are further demonstration of our commitment to collaboration and innovation with our customers, supported by industry-leading integration.”
The announcement builds on the company’s alkoxylation capacity expansions announced in 2018 in Louisiana and 2019 in Spain, both of which are set to go live this year. In total, these and other energy efficiency projects are expected to generate more than $150 million in current earnings before interest, taxes, depreciation and amortization by 2025, with returns in excess of 20%.
Collectively, Dow’s investments will result in approximately 70% global capacity growth for Dow and its customers since 2020.
Dow’s versatile alkoxylation actives enhance the building blocks of materials science to produce safe and sustainable ingredients for cosmetics, household and industrial cleaning, home and personal care, crop defense, petroleum and gases, pharmaceuticals, paints and many other everyday products in a number of product lines including Tergitol, Ucon, Ecosurf and Carbowax Sentry.