US-based chemicals firm Dow Chemical’s St. Charles Olefins 2 Plant near Hahnville has been re-started. The St. Charles plant, which was idled in January 2009, is expected to deliver a US$150 million increase in EBITDA in 2013.

The plant began producing on-spec ethylene late December, meeting previously announced targets to re-start the plant by year-end 2012.

“The start-up of our St. Charles ethylene plant represents the first major milestone within our US Gulf Coast investment strategy,” said Brian Ames, President, Dow Olefins, Aromatics and Alternatives. “This action further reduces the company’s purchased ethylene, lowering costs and strengthening the competitiveness of our high-margin, high-growth derivatives businesses.”

This milestone is part of Dow’s comprehensive investment plan to further connect its US operations with cost-advantaged feedstocks from increasing supplies of US shale gas and deliver long-term competitive advantage for Dow’s downstream businesses. Plans to increase ethylene and propylene supply and ethane cracking capabilities at existing US Gulf Coast facilities strengthen the competitiveness of Dow’s Performance Plastics, Performance Products and Advanced Materials businesses and enable profitable growth in the Americas, said the firm.