Dow to further boost alkoxylation capacity in Europe, US

Dow is to build new alkoxylation capacity in the US and Europe to meet fast-growing demand in industries such as personal care.

The new capacity will support global growth in key end-markets delivering 10% to 15% annual growth rates, it said.

The investment will increase Dow's capacity while maintaining current carbon emissions levels through the use of efficient technologies and site improvements, it added.

The investments in the US and Europe are backed by supply agreements with customers, including leading consumer brands, and expected to come online in 2024 and 2025, respectively.

The announcement builds on Dow’s alkoxylation capacity expansions announced in 2018 in Louisiana and in 2019 in Spain, which are both on track to come online this year.

In total, these and other efficiency projects are expected to generate more than $150m in run-rate EBITDA by 2025, with returns greater than 20%.

Collectively, Dow's investments will result in approximately 70% global capacity growth for Dow and its customers since 2020.

"We have consistently seen increased demand for our alkoxylation capabilities aligned to industry sectors growing faster than GDP across the cycle," said Brendy Lange, business vice president of Dow Industrial Solutions.

"These latest investments are another demonstration of our commitment to customer collaboration and innovation backed by industry leading integration."

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