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23. October 2006

THAILAND: Dow Chemical to expand Thai operations

Source: Daily "The Nation", Bangkok; 23 Oct 2006

Dow Chemical announced last week that it planned to
move ahead with a joint venture liquids-cracker
project in Thailand.

The new facility will be developed jointly with Siam Cement
at the Dow-SCC complex at Map Ta Phut in Rayong province.

According to the company's statement, a number of
downstream facilities will be developed by Dow in
conjunction with the new development. Among those
under consideration are a hydrogen-peroxide-to-propylene-oxide
(HPPO) plant with technology developed by the company in
collaboration with BASF, along with a range of PO derivatives.

PO is used to produce propylene glycol, polyurethanes
and glycol ethers.

The new cracker will also allow for the expansion of
the existing higher-alpha olefins-polyethylene joint
venture facility, which would produce speciality
polyolefin products using Dow's advanced catalyst
technology.

"This project supports Dow's strategic agenda on
several fronts," said Dow chairman and CEO Andrew
Liveris.

The new facility "provides a competitive platform on
which to develop a range of higher margin performance
business opportunities." It is another example of an
asset-light investment approach, through which Dow
plans to grow in joint ventures with strategic
partners like SCC, Liveris added.

The cracker, which is expected to begin operations in
2010, builds on Dow's longstanding relationship with
SCC and is the latest in a series of joint ventures
between them.

The two companies signed their first joint venture
agreement in 1987, and have since formed a total of
five such companies, producing polyols, synthetic
latex, polystyrene, styrene monomer and polyethylene
at the Map Ta Phut site. The SCC-Dow Group of
companies has also invested in an ethylene cracker
operated by Siam Cement at the site.



(Syed Rashid Ali, Karachi, Pakistan)

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