The Dow Chemical Company (Dow) announced that it plans to move ahead with a joint venture liquids cracker in Thailand; an asset light project in a key emerging geography that will provide propylene and other building blocks to help drive the growth of the Company's Performance businesses across Asia Pacific. The new facility will be developed jointly with The Siam Cement Public Company Limited (SCC).
A number of down-stream 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 -- technology developed by the Company in collaboration with BASF -- and 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 specialty polyolefin products using Dow's state-of-the-art process and catalyst technology.
Importantly, the proximity of the new facility to the existing Dow-SCC complex at Map Ta Phut in Rayong province will enable existing assets, capabilities and infrastructure to be leveraged, creating a source of advantaged raw materials for downstream derivatives businesses.
"This project supports Dow's strategic agenda on several fronts," said Dow chairman and chief executive officer, Andrew Liveris.
"It strengthens the Company's presence in AsiaPacific; it provides a competitive platform on which to develop a range of higher margin Performance business opportunities; and it is another example of our asset light investment approach, through which we will grow the Basics businesses in joint ventures with strategic partners like SCC."
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