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UCAR Emulsion Systems To Build New Latex Facility

Published on 2004-02-27. Author : SpecialChem

Announces Long-term Asset Investment Plan for North America

CARY, N.C. - February 27, 2004 - UCAR Emulsion Systems, a global business unit of The Dow Chemical Company, today announced plans to invest in its North American manufacturing capability. This plan includes construction of a new facility at St. Charles Operations (Hahnville, La.) by Union Carbide Corporation, as well as expected future investments in Alsip, Ill., and Sarnia, Ontario. This capacity will replace existing manufacturing sites in Tucker, Ga., and Garland, Texas, which will be shut down by Union Carbide Corporation in 2006.

The plan calls for more than $100MM of investment over the next three years, with the primary investment being a next-generation latex facility in St. Charles.

"This investment in UCAR Emulsion Systems and Dow's recent acquisition of the Celanese acrylates business represent a significant commitment to the paint and coatings industry," said Phil Cook, Dow's senior vice president for Performance Chemicals and Thermoset Products.

The St. Charles facility will implement Dow's technology to deliver the productivity required to supply the coatings industry. "Paint and coatings customers are very demanding of suppliers," said Thayne Hansen, UES global business director. "This investment enables UES to significantly improve productivity and quality to thrive as a business in this environment."

Two existing UES production facilities in Alsip and Sarnia are also expected to receive investments during the next three years to improve their long-term manufacturing capability.

These actions are the result of an extensive study of UES North American manufacturing options to ensure sustainable operations. "Although all of our sites have served customers well for many years," Hansen said, "we came to the difficult conclusion that we could not affordably reinvest in the facilities at Tucker and Garland. We will close these two facilities after transferring production into the new St. Charles plant in 2006."

The investment in St. Charles Operations is expected to add more than 30 permanent jobs in addition to 150 contractor jobs throughout construction.

The UCAR Emulsion Systems business manufactures and markets emulsions for the architectural coatings market as well as the building products and textiles markets. UCAR(tm) and NeoCAR(tm) latexes, and UCAR POLYPHOBE(tm) rheology modifiers can be used in a wide variety of coating formulations to enhance performance properties. UES has 14 production facilities globally, including six operating in North America.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Source: Dow Chemical


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