World-scale facility part of Dow’s silicone expansion plans

Friedrichshafen, Germany – Dow Chemical Co. s currently conducting a feasibility study on a “world-scale” siloxane production plant as part of a strategic investment in the intermediate.

A decision on the location of the plant and what it would look like will be made “sometime in 2019,” according to Charlie Zimmer, global strategic marketing director, silicone elastomers at Dow.

The study is alongside a series of what Dow has described as “low capital intensity, high return” investments in its silicones business in a bid to meet growing demand and address the current market tightness.

Over the next three years, the series of incremental debottlenecking and efficiency improvement projects is intended to increase capacity and efficiency in Dow’s siloxane manufacturing facilities around the world.

Siloxane is the base material that feeds all other silicone products, including silicone rubbers, RTVs, adhesives and emulsions.

Another significant investment by Dow includes the construction of an MQ silicone resin production plant, Zimmer told ERJ on the sidelines of the Fakuma trade show.

The project at Dow’s site in Zhangjiagang, Jiangsu, China, is scheduled to come online in 2021, the company’s global marketing director said at the event held 16-20 Oct in Friedrichshafen.

MQ resin, explained Zimmer, is an intermediate that goes into some of Dow’s silicone elastomers and is used as an enabler in the company’s mouldable optical silicone.

Another project underway is a vinyl polymer production plant in Carrollton, Kentucky, to produce hydroxyl functional siloxane materials.

The project, which will raise the polymer’s capacity in the Americas by 65%, is expected to start operation within two years. 

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The new production cells in Barry, said Zimmer, will roughly add 20% to Dow’s HCR solid rubber compounding capacity while adding “even more” to its FSR capabilities. The facility is expected to come online in mid-2019.

“That is strategic to us as we grow in the automotive industry. We continue to see growth with under-the-hood applications, turbocharger hoses, seals, etc,” the Dow official said.

As the cars of the future become lighter, they drive demand for higher-performing materials such as the turbocharger hose, which is a fluorosilicone-based product.

“Dow has assets that are integrated into each of its regions, which positions it for further growth globally,” the company executive added.

Zimmer declined to discuss details of the market outlook but said the investments announced are being made in response to its customers’ demands.

“When we are talking about the siloxane plant, debottlenecking, new investments in intermediates, in MQ resin, these are all in alignment with the tightness in the market,” Zimmer added.

The Dow official went on to add that the company believes that it will be able to “manage” the demand with its upcoming investments.

In line with shortage of supply and due in part to higher raw material costs, silicone products have seen a general price increase in the past 18 months.

“As of right now, it is difficult to predict what the future holds, as with the upgrading and investment plans, there might be opportunities for us to become more efficient,” he added.

Amid the market pressures, Zimmer sees further opportunities for growth in China, through its large footprint in Asia-Pacific.

Dow’s plants in the region use the same EHS (environment, health, safety) standards as its other facilities worldwide.

This, according to Zimmer, gives the company an edge over its Chinese that now have to comply with stringent Chinese environment regulations.

“We are very well-positioned to meet any regulatory changes that the Chinese government may put in place. It is something that we believe is an advantage over competition,” Zimmer concluded.