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Dow Provides Update Regarding Strategic Investments in its Plastics Franchise in the Americas

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The Dow Chemical Company (NYSE:DOW) announced today that several key milestones have been reached with the Company’s Plastics investments in the U.S. Gulf Coast and Latin America. The projects on the U.S. Gulf Coast are nearing peak construction and remain on track and on-plan for start-up, with all site construction underway. When fully operational, Dow’s collective feedstock and plastics expansions on the U.S. Gulf Coast are projected to deliver an estimated $2.5 billion in EBITDA annually. In Bahia Blanca, Argentina, Dow plans to expand capacity and enhance production technologies and equipment of its polyethylene production units to support increased market demand in consumer and industrial films.

Dow's PDH facility stands now more than 50 percent complete. (Photo: Business Wire)

Dow’s PDH facility stands now more than 50 percent complete. (Photo: Business Wire)

“Dow continues to forge ahead with its global growth strategy, leveraging our first-mover advantage on the U.S. Gulf Coast and expanding capacity in Latin America to meet customer growth long term,” said James Fitterling, vice chairman, Business Operations. “We are well on our way to realizing the full financial benefit of these efforts, and continue to be diligent with Dow’s investment to connect cost-advantaged raw materials to many of the Company’s highest-margin downstream businesses.”

U.S. Gulf Coast Update

In Freeport, Texas, all engineering for the on-purpose propylene PDH project is complete and more than 50 percent of construction is complete. The project remains on track for start-up in mid-2015.

Dow’s previously announced world-scale ethylene production facility, which began construction on June 30, remains on track and on-plan for start-up in the first half of 2017. The facility, which has more than 65 percent of engineering and 5 percent of construction complete, will support market growth and derivative expansions of Dow’s industry leading Performance Plastics franchise.

For derivatives, Dow will expand its High Melt Index (HMI) AFFINITYTM, AFFINITYTM GA and ENGAGETM brand polymer franchises in Freeport. These materials deliver stronger bonding in hot melt adhesives for packaging and hygiene markets, and enable lighter and more durable components for transportation. Building on Dow’s proprietary solution polyethylene technology, the Company will also expand its popular ELITETM franchise which delivers enhanced durability and flexibility for food packaging, hygiene & medical, and industrial and consumer packaging markets. These high performance brands are powered by Dow’s industry leading proprietary INSITETM catalyst technology.

In Plaquemine, Louisiana, Dow will expand its NORDELTM EPDM franchise with next generation technology. Also powered by INSITE, NORDEL EPDM provides the infrastructure, transportation, consumer durables, appliance and electrical and telecommunications markets with highly flexible, heat and chemical resistant polymers that deliver enhanced durability and long service life. Also in Plaquemine, Dow will expand its Low Density Polyethylene (LDPE) family of high performance products like AGILITYTM that are faster to process, more stable and deliver improved optics for applications in flexible food packaging.

Latin America Expands PE Production

Starting in 2015, Dow plans to expand capacity and enhance production technologies and equipment at its four polyethylene (PE) production units – LDPE, Slurry, Gas Phase, Solution – in Bahia Blanca, Argentina. These investments will enable Dow to produce more high performance resins for flexible and rigid packaging applications to meet growing demand in Latin America.

The LDPE plant will be refurbished to enable production of resins for extrusion coating used in multiple packaging applications. The Slurry plant expansion will help drive growth of bimodal blow molding resins, which is currently in short supply in the region. The Gas Phase plant, which produces resins for geomembranes and pipes, will also be refurbished for improved operational performance. The Solution plant expansion will bring more of Dow’s popular DOWLEXTM and ELITE resins to market and enable Dow to increase its participation in high value markets like food packaging and hygiene.

About Dow

Dow (NYSE:DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow’s integrated, market-driven, 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 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company’s more than 6,000 products are manufactured at 201 sites in 36 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.

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