PHILADELPHIA -- The Dow Chemical Company (NYSE: DOW) has announced that it is planning to expand its cellulosic production capacity, particularly for construction grade applications, with a geographic focus on the Asia Pacific region. Cellulosic technology is a strategic part of Dows product portfolio. Global demand for cellulosics in the construction industry grew nearly 15 percent in the past year alone, outstripping global supply. Expanding capacity will position Dow to meet the increasing global demand for cellulosics and demonstrate its commitment to investing in specialty products that deliver an advantage to Dow customers and their markets.
Decisions regarding the location and capacity of assets will be made upon completion of a feasibility study.
Dow produces several cellulose ether grades, such as hydroxyethyl cellulose (HEC) hydroxyethyl methyl cellulose (HEMC) and hydroxypropyl methyl cellulose (HPMC) for a wide variety of market segments such as pharmaceutical, personal care, industrial and building and construction. These segments are poised to experience high growth, driven by global trends including population growth, a rising middle class and infrastructure investments in rapidly developing regions. In the next 10 years, the construction industry is projected to grow nearly 7 percent per year in China and South Asia alone.
"For our business, this will help add greater value to our customers around the world," said Colin Gouveia, global general manager, Dow Construction Chemicals. "Our world-class cellulose ether production sites in Germany and the U.S., along with our steadfast commitment to this industry for more than 40 years, have enabled us to sustain our leadership position in cellulosics. Expanding capacity will allow Dow to further grow this position; maintain reliable supply for our customers; and demonstrate the companys commitment to invest in attractive, high-growth regions."
In the building and construction industry, cellulosic products act as thickening agents to enhance sag resistance, water retention, adhesion and workability in a variety of dry mix applications, such as tile adhesives and grouts, tape joint compounds, reinforcing and bonding mortars for exterior insulation and finish systems (EIFS) and gypsum- and cement-based plasters and renders.
Dow (NYSE: DOW) combines the power of science and technology with the "Human Element" to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the worlds most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dows diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Companys more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
With a broad product portfolio in acrylic, redispersible latex powder, and cellulosic technology Dow Construction Chemicals is a leading supplier to construction product formulators around the world. Dow Construction Chemicals building science expertise and robust research and development capabilities is based on a 40-year track record in the building and construction industry. We offer in-depth application know-how as well as effective formulation support to manufacturers of building and construction products around the world - a strong construction-focused business unit supported by global research, technical service and manufacturing facilities. Our worldwide network of research and manufacturing capabilities is well equipped to meet the demands of todays businesses. Customers benefit from global innovations and development across all regions, and can also rely on local resources that understand the specific demands of the regional marketplace.
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