Dow Progresses its U.S. Gulf Coast Investments, Develops Plans for Performance Plastics Facilities

  Dow Progresses its U.S. Gulf Coast Investments, Develops Plans for
  Performance Plastics Facilities

   Shale Gas Advantage Positions Dow for Growth while Driving U.S. Economic
                       Revitalization and Job Creation

Business Wire

MIDLAND, Mich. -- March 18, 2013

The Dow Chemical Company (NYSE: DOW) announced today that it intends to build
several new, specialty material production units aligned to its high value
Performance Plastics franchise on the U.S. Gulf Coast.The move further
connects the Company’s U.S. manufacturing operations with cost-advantaged
feedstocks available from increasing supplies of shale gas in North America,
while also creating thousands of new, high-paying jobs across the country’s
manufacturing sector.

Collectively, Dow expects the new Performance Plastics facilities will employ
up to 3,000 workers at construction peak. Over the next five to seven years,
Dow estimates that these projects, together with all other planned projects
previously announced as part of the Company’s comprehensive U.S. Gulf Coast
investment plan, will employ approximately 5,000 workers during peak
construction and support over 35,000 jobs in the broader U.S. economy.

“These new facilities will include a wide range of technologies that will
produce differentiated, high performance materials for the fastest growing
segments in Dow’s existing markets, while providing access to new markets and
applications,” said Jim Fitterling, Dow Executive Vice President. “These
investments are also aimed at businesses that have consistently delivered a
higher return on capital, which is clearly aligned with our long-term
strategy. This, coupled with an enhanced market and value chain focus in our
high value Performance Plastics franchise, will deliver faster growth with
lower earnings volatility.”

Production Units Enter FEED Phase, Target Dow’s Fastest Growing Markets

The new facilities are in the Front End Engineering and Design (FEED) phase
that will be completed in 2014. These facilities will manufacture
competitively advantaged materials for several of the Company’s fastest
growing market segments, including Packaging; Hygiene and Medical; Electrical
and Telecommunications; Transportation, Sports and Leisure and Consumer
Durables. The new capacity will be targeted at projected growth in North and
South America in addition to select export opportunities over the coming
decade. Dow is currently exploring specific location options on the U.S. Gulf
Coast, with final investment locations to be determined at a later date.

Specific production units include the following:

  *Previously announced Next Generation NORDEL™ metallocene Ethylene
    Propylene Diene Monomer (EPDM) for Transportation, Infrastructure,
    Electrical & Telecommunications;
  *High Melt Index (HMI) Elastomers for Dow’s AFFINITY™ brand of Hot Melt
    Adhesives;
  *ELITE™ Enhanced Polyethylene for high performance flexible packaging and
    hygiene & medical applications;
  *Specialty Low-density polyethylene (LDPE) to serve demand growth in
    packaging and electrical & telecommunications market segments.

Strategically Aligned Growth

These moves directly support Dow’s transformational strategy to create
additional competitive advantage for Dow’s Performance businesses by expanding
access to advantaged natural gas-based feedstocks. These new units will
utilize building block materials from a new, previously announced ethylene
production facility slated for start-up in 2017.

Dow Progresses Comprehensive U.S. Gulf Coast Growth Plan

Additional projects within the Company’s U.S. Gulf Coast investment strategy
are moving forward according to schedule.

Actions to improve ethane feedstock flexibility and increase ethylene supply
at the Company’s Louisiana Operations site in Plaquemine, La. in 2015 are
progressing on schedule.

Construction work for a new propylene production facility at Dow Texas
Operations commenced in January 2013, and the project is on track towards a
scheduled start-up in 2015. The construction project is expected to create
1,300 jobs at its peak and will provide building blocks for Dow’s epoxies and
polyurethanes franchises.

Plans to construct a new, world-scale ethylene facility at Dow Texas
Operations are progressing in alignment with Company targets. Dow’s Board of
Directors recently authorized capital to progress the project through detailed
engineering and purchase long lead time equipment for the facility. This unit
will be the primary supply to the newly announced Idemitsu / Mitsui joint
venture.

In addition, an ethylene production unit at Dow St. Charles Operations
successfully restarted in December 2012, meeting Company targets to re-start
the plant by year-end 2012.

Dow also announced today an initial agreement for a long-term ethylene
off-take arrangement with a new joint venture to be formed between Idemitsu
Kosan Co., Ltd., and Mitsui & Co., Ltd., of Tokyo, Japan. Idemitsu and Mitsui
will form the joint venture to construct and operate a world-scale, Linear
Alpha Olefins unit on the U.S. Gulf Coast. The JV will utilize an integrated
supply of ethylene from Dow’s U.S. Gulf Coast production grid to produce
Linear Alpha Olefins used as comonomers throughout Dow’s high value
Performance Plastics franchise.

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately
innovate what is essential to human progress. The Company connects chemistry
and innovation with the principles of sustainability to help address many of
the world's most challenging problems such as the need for clean water,
renewable energy generation and conservation, and increasing agricultural
productivity. Dow's diversified 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 160 countries and in high growth sectors such as electronics,
water, energy, coatings and agriculture. In 2012, Dow had annual sales of
approximately $57 billion and employed approximately 54,000 people worldwide.
The Company's more than 5,000 products are manufactured at 188 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.

Note: The forward-looking statements contained in this document involve risks
and uncertainties that may affect the Company’s operations, markets, products,
services, prices and other factors as discussed in filings with the Securities
and Exchange Commission. These risks and uncertainties include, but are not
limited to, economic, competitive, legal, governmental and technological
factors. Accordingly, there is no assurance that the Company’s expectations
will be realized. The Company assumes no obligation to provide revisions to
any forward-looking statements should circumstances change, except as
otherwise required by securities and other applicable laws.

Contact:

For editorial information:
The Dow Chemical Company
Nancy Lamb, 989-638-7251
NELamb@dow.com
 
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