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Released April 28, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Now that it is wrapping up its big ethylene-related projects on the U.S. Gulf Coast and in Saudi Arabia, Dow Chemical Company (NYSE:DOW) (Midland, Michigan) is turning its attention to incremental chemical projects, company executives said Thursday.
The 3 billion-pound-per-year LHC-9 (Texas 9) unit addition at Dow's Oyster Creek Chemical complex in Freeport, Texas, is more than halfway through its commissioning, executives said during the company's first-quarter 2017 earnings presentation. The $1.7 billion unit is expected to begin full operations this summer. At the same time, two downstream polyethylene plants, one in Texas and the other in Louisiana, will begin operations, according to Dow. For more information, see Industrial Info's project report, and March 30, 2017, article - Dow Chemical Readies New Ethylene Unit to Feed U.S. Gulf Coast Projects.
Dow also announced Thursday that Sadara Chemical Company, its Saudi Arabia joint venture project with Saudi Arabian Oil Company (Saudi Aramco) has started up a high-pressure low-density polyethylene plant, adding to Sadara's mixed feed cracker and the three polyethylene trains that are already in operation. Construction of all of Sadara's 26 production facilities at the Al-Jubail Chemical Complex was completed in December. Sixteen of those units are in operating or start-up mode.
Dow Chief Executive Officer Andrew Liveris said during the earnings presentation that the company is not sitting on its laurels: "These investments provide a springboard to drive the next chapter of Dow's growth trajectory. We will be announcing this next phase of these investments very soon."
Liveris added that "we have our mind's eye to when these will come up, what is the next load of capacity, you should think of us as incremental from here because we have these big bases. There is a lot of work being done to define how we get that in place over the next five years. We are reviewing that now and we will something to say very soon. You can assume we will be the leader in making sure that we will keep our share where it is, if not grow it, especially with these high end products that we can make..."
Gulf Coast project completions in 2018 include the $400 million addition of a linear low-density polyethylene (LLDPE) unit in Freeport, which is designed to produce 650,000 metric tons per year of the company's ELITE Enhanced Polyethylene product for high-performance, flexible food packaging and personal hygiene applications. For related information, see Industrial Info's project report.
Dow Chief Financial Officer Howard Ungerleider said Dow expects to spend $3.4 billion on capital projects this year, compared with $3.8 billion in 2016.
Chief Operating Officer James Fitterling added, "I think given the nature of what we've got in front of us, the next three or so years being incremental projects, albeit some of them pretty good sized increments, we can do it within those numbers."
Dow Chemical reported $915 million in net income for the just-ended quarter, compared with $275 million in first-quarter 2016. Net sales totaled $13.2 billion for first-quarter 2017, up from $10.7 billion in first-quarter 2016, which reflects the addition of Dow Corning's silicone business.
Dow said it continues with the planned merger with E.I. du Pont de Nemours and Company (NYSE:DD) (DuPont) (Wilmington, Delaware) this year. For more information, see March 28, 2017, article - Dow-DuPont Merger Clears Regulatory Hurdle in Europe.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The 3 billion-pound-per-year LHC-9 (Texas 9) unit addition at Dow's Oyster Creek Chemical complex in Freeport, Texas, is more than halfway through its commissioning, executives said during the company's first-quarter 2017 earnings presentation. The $1.7 billion unit is expected to begin full operations this summer. At the same time, two downstream polyethylene plants, one in Texas and the other in Louisiana, will begin operations, according to Dow. For more information, see Industrial Info's project report, and March 30, 2017, article - Dow Chemical Readies New Ethylene Unit to Feed U.S. Gulf Coast Projects.
Dow also announced Thursday that Sadara Chemical Company, its Saudi Arabia joint venture project with Saudi Arabian Oil Company (Saudi Aramco) has started up a high-pressure low-density polyethylene plant, adding to Sadara's mixed feed cracker and the three polyethylene trains that are already in operation. Construction of all of Sadara's 26 production facilities at the Al-Jubail Chemical Complex was completed in December. Sixteen of those units are in operating or start-up mode.
Dow Chief Executive Officer Andrew Liveris said during the earnings presentation that the company is not sitting on its laurels: "These investments provide a springboard to drive the next chapter of Dow's growth trajectory. We will be announcing this next phase of these investments very soon."
Liveris added that "we have our mind's eye to when these will come up, what is the next load of capacity, you should think of us as incremental from here because we have these big bases. There is a lot of work being done to define how we get that in place over the next five years. We are reviewing that now and we will something to say very soon. You can assume we will be the leader in making sure that we will keep our share where it is, if not grow it, especially with these high end products that we can make..."
Gulf Coast project completions in 2018 include the $400 million addition of a linear low-density polyethylene (LLDPE) unit in Freeport, which is designed to produce 650,000 metric tons per year of the company's ELITE Enhanced Polyethylene product for high-performance, flexible food packaging and personal hygiene applications. For related information, see Industrial Info's project report.
Dow Chief Financial Officer Howard Ungerleider said Dow expects to spend $3.4 billion on capital projects this year, compared with $3.8 billion in 2016.
Chief Operating Officer James Fitterling added, "I think given the nature of what we've got in front of us, the next three or so years being incremental projects, albeit some of them pretty good sized increments, we can do it within those numbers."
Dow Chemical reported $915 million in net income for the just-ended quarter, compared with $275 million in first-quarter 2016. Net sales totaled $13.2 billion for first-quarter 2017, up from $10.7 billion in first-quarter 2016, which reflects the addition of Dow Corning's silicone business.
Dow said it continues with the planned merger with E.I. du Pont de Nemours and Company (NYSE:DD) (DuPont) (Wilmington, Delaware) this year. For more information, see March 28, 2017, article - Dow-DuPont Merger Clears Regulatory Hurdle in Europe.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
