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02-26-2008

Dow: TDI Expansion Plans in Latin America

Dow Polyurethanes, a business group of The Dow Chemical Company (Dow) and its subsidiaries, announced today it is conducting a feasibility study to expand toluene diisocyanate (TDI) production at its manufacturing facility in Camaçari, Brazil. The proposed expansion, which involves a new process technology designed to turn Camaçari into a leading world-class production facility, would help support growing demand for end-use polyurethanes products in Latin America. Key decisions on the project are expected by the fourth quarter of 2008, and if approved, the new TDI capacity would come online in 2011.

Dow is the largest TDI producer in Latin America with production capacity of 60 kilotons per annum. Fueled by increased consumption of polyurethane products, demand for TDI in Latin America is expected to grow by approximately 1 to 2 % above gross domestic product through 2015. TDI is a critical raw material that is combined with performance-based polyols to create flexible polyurethane foams for automotive, furniture and bedding applications.

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