Bomlitz, Germany - July 23, 2007
Further illustrating The Dow Chemical Company’s performance business investment strategy, Dow Wolff Cellulosics today announced new capacity and capabilities, as well as steady progress on previously announced expansions. A newly formed specialty business unit of The Dow Chemical Company, Dow Wolff Cellulosics is expanding its capacity and capabilities to better serve cellulosics customers in key markets worldwide.
“We’re making good on our promise to create the future for the cellulosics industry,” said Martin Sonntag, general manager of Dow Wolff Cellulosics. “Dow is committed to investing in its performance businesses and we are currently accelerating investments for sustained growth of the cellulosics industry and customers who rely on our technical support capabilities, global reach, long-term focus and reliable operations.”
Dow Wolff Cellulosics plans to build a methylhydroxyethylcellulose (MHEC) production plant in Bitterfeld, Germany. The new facility is expected to come on stream in the first quarter 2009 and will produce MHEC primarily for the construction materials market. “With this investment Dow Wolff Cellulosics will serve the ongoing strong demand for methylcellulose products in formulations for all our key end-use markets.in the future”, said Sonntag.
In addition, progress towards previously announced projects is expected to yield capacity additions of approximately 10,000 metric tons coming on-stream within the following months to other sites of Dow Wolff Cellulosics. New capacity for METHOCEL™ cellulose ethers is expected to be available from Stade, Germany during the fourth quarter of 2007, while Midland, Mich. will have a new full-train operational in early 2008. The expansions are part of Dow’s long-term multi-phase expansion program initiated in 2005.
For the past several years, the cellulosics industry has been experiencing a strong increase in worldwide demand across many end-use applications. Industry analysts estimate the worldwide market for methylcellulosics has grown by approximately 6% in 2006 and is expected to grow at least at a similar rate in 2007.
“We’re continuing to make significant investments to ensure Dow can meet customers' current and long-term needs,” Sonntag said. “Our multiple assets are running well and Dow’s immediate focus remains to maximize cellulosics output for customers while maintaining health, safety and environmental priorities.”
Furthermore, building on its strengths in regulated applications, as well as the ongoing demand and product development needs in the food, personal care and pharmaceutical industries, Dow Wolff Cellulosics also is executing plans to enhance its capabilities to produce more low-viscosity (LV) products. While Dow Wolff Cellulosics has already adjusted its product mix to accommodate modest additional LV capabilities in Midland and at Plaquemine, La., the Company plans to enhance LV capability at Plaquemine during 2009 and is also committed to establishing similar capabilities in Germany for more global supply flexibility.
“Cellulosics and their formulation are core to our business and, as specialty products, a key element of Dow’s overall corporate growth strategy. Our combined plans for expanded capacity and specialized capabilities reflect Dow’s commitment to all major industries that depend on cellulose ethers – whether they are essentials for construction materials and industrial specialties or performance differentiated offerings for the regulated areas of pharmaceuticals, food and personal care,” said Dr. Dieter Herzog, global asset director for Dow Wolff Cellulosics.
About Dow Wolff Cellulosics
A preferred development partner in its markets, Dow Wolff Cellulosics supplies high-performance cellulose derivatives and complementary chemistries, and is expert in formulation know-how for a broad variety of end-use products in construction, food, personal care, pharmaceuticals, paint and other specialty industrial applications.
A business unit of The Dow Chemical Company, Dow Wolff Cellulosics was created on July 01, 2007 as a new business encompassing the activities of Wolff Walsrode and Dow’s Water Soluble Polymers business. On a pro-forma basis, Dow Wolff Cellulosics had combined revenues of more than US $1 billion in 2006 and employed 2,200 people worldwide. More details about Dow Wolff Cellulosics are on the Web at www.dowwolffcellulosics.com.
About Dow
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For Editorial Information:
Michael Heinz, Dow Wolff Cellulosics, mheinz@dow.com
Eberhard Wuehle, Dow Wolff Cellulosics, eberhard.wuehle.ew@wolff-walsrode.de
