Dow Evaluates Growth Opportunities for Polyurethanes in Latin America

Dow Evaluates Growth Opportunities for Polyurethanes in Latin America
Conducts feasibility study to expand TDI capacity in Camaçari, Brazil

Midland, MI - February 18, 2008

Dow Polyurethanes, a business group of The Dow Chemical Company (Dow) and its subsidiaries, announced today it is conducting a feasibility study to expand toluene diisocyanate (TDI) production at its manufacturing facility in Camaçari, Brazil. The proposed expansion, which involves a new process technology designed to turn Camaçari into a leading world-class production facility, would help support growing demand for end-use polyurethanes products in Latin America. Key decisions on the project are expected by the fourth quarter of 2008, and if approved, the new TDI capacity would come online in 2011.

“With its sustained overall economic growth and robust chemical sector, Latin America is an important region for Dow. The proposed TDI expansion would continue to fuel the growth of Performance businesses like Dow Polyurethanes by enabling us to better meet the growing needs of our customers with a long-term, low-cost supply,” said Pat Dawson, business president, Dow Polyurethanes. “The TDI capacity expansion would enable us to support the growing manufacturing capabilities of our Latin American customers who need a reliable supply of this raw material to serve their local markets.”

Dow is the largest TDI producer in Latin America with production capacity of 60 kilotons per annum. Fueled by increased consumption of polyurethane products, demand for TDI in Latin America is expected to grow by approximately 1 to 2 percent above gross domestic product through 2015. TDI is a critical raw material that is combined with performance-based polyols to create flexible polyurethane foams for automotive, furniture and bedding applications.

“Dow has served the needs of our customers in Latin America for more than 50 years,” said Fernando Rodriguez, commercial director, Dow Polyurethanes Latin America. “With this potential expansion, Dow continues to demonstrate our commitment to the success of our customers, to the industry and to this important region.”

About Dow Polyurethanes

Dow is the world's largest producer of propylene oxide (PO), polyether polyols and is a leading producer of quality aromatic isocyanates, such as MDI and TDI, an essential component of polyether polyols. Dow's polyurethanes products and formulated polyurethane systems are used in rigid foams, flexible foams, appliances, adhesives, sealants, coatings, and elastomers, as well as many other applications. Dow also offers the latest in polyol technology with its VORANOL™ VORACTIV™ polyols, part of an ongoing initiative by Dow to lead the industry in providing high-performance products with reduced VOC-emissions. For more information, visit www.dowpolyurethanes.com, www.pusystems.com and www.voractiv.com.

About Dow

®™^* Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow

For Editorial Information:

Myra Dean
The Dow Chemical Company
989-638-6969


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