Exclusive Producer of Nitro-Paraffins Plans $100 Million Investment in Louisiana Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Angus Chemical Company (Buffalo Grove, Illinois), a wholly-owned subsidiary of Dow Chemical Corporation (NYSE:DOW) (Midland, Michigan), is planning investments in excess of $100 million for its Sterlington, Louisiana, nitro-paraffins production plant. This major investment will include a new nitro-paraffin derivatives plant and will have an estimated total investment value (TIV) of $116 million. Angus' sister company, Dow Design and Construction (Houston, Texas), will perform the engineering and construction of the new plant. Current plans are to begin construction in mid-2006 and have the new plant commercially operational by the second quarter of 2007.

A separate planned investment at the existing Sterlington nitro-paraffin operations will include reductions in liquid waste emissions, with an estimated TIV of $9 million. To reduce the generation of liquid waste, a new off-grade tank and coalescer process tank will be installed along with reactor, piping, and other equipment modifications. Currently, the residuals from the liquid waste are transferred to the utility area and burned off as a supplemental fuel in the steam generation boilers. Angus plans to begin construction on this project early 2006 and should have it complete within six months.

The existing Sterlington, Louisiana, site produces nitro-paraffins and nitroalkane derivatives and, according to Angus, is the only plant of its kind in the world that produces these chemicals. The products are used in the production of latex paints, medicines, and personal-care products, including cosmetics and contact lens solution.

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