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ow Chemical will build a propylene glycol (PG) plant in Map Ta Phut, Thailand, with a capacity of up to 150,000 tonnes, and also increase its ethane cracking capabilities on the US Gulf Coast over the next three years as well as improve its capabilities by up to 30%.

The Thai plant will utilise the hydrogen peroxide-propylene oxide (HPPO) technology Dow has developed together with BASF. The HPPO plant is being constructed as part of the integrated joint venture liquids cracker and derivatives project in Thailand with Siam Cement Group (SCG).

Dow says this investment will enhance support to its customers in the Asia Pacific region for a variety of product applications including pharmaceuticals, food, personal care and more. In addition, the advanced energy reduction and throughput optimisation technology that was implemented at Dow's Stade, Germany PG site this September will also be implemented at the new Thailand PG facility.

In the ethane news, the US company is also reviewing joint venture options for building a Natural Gas Liquids (NGL) Fractionator to secure the supply of ethane. Both actions are intended to capitalise on the current favourable supply dynamics in North America and further bolster the competitive advantage of Dow's Plastics franchise as well as its high-margin, downstream performance businesses.

Dow is the world's largest ethylene producer and it plans to use its well-developed infrastructure to participate with producers in fractionation, transportation and storage of NGLs.

Dow produces approximately 55% of its ethylene from ethane and with its competitive US cost position provides a strategic advantage for its higher-margin speciality plastics businesses, such as LLDPE as well as its Performance and Advanced Materials businesses.