The Dow Chemical Company
) announced that it plans to build a number of specialty material
production plants on the U.S. Gulf coast to leverage feedstock
advantage available from increasing supplies of shale gas in
Dow expects to ramp up the Performance Plastics capacity along
the U.S. Gulf coast and plans to construct new facilities along
the Gulf Coast. The facilities are currently in the front end
engineering and design (FEED) phase and are expected to be
completed in 2014.
These facilities will likely include a number of technologies
that will manufacture materials for Dow's fastest growing market
segments including packaging, hygiene and medical, electrical and
telecommunications, transportation, sports and leisure and
Planned units include facilities for the production of
ethylene-propylene-diene monomer (EPDM), elastomers, polyethylene
(PE) and low density polyethylene (LDPE). The facilities by Dow
will employ up to 3,000 workers at construction peak.
Dow estimates that these units along with other planned
projects earlier announced as part of the company's comprehensive
U.S. Gulf Coast investment plan, will employ about 5,000 workers
during peak construction and will create over 35,000 jobs in the
broader U.S. economy over the next 5 to 7 years.
These are strategic moves by Dow to create additional
competitive advantage for its Performance businesses by
increasing access to cost-advantaged natural gas-based
feedstocks. These investments are focused at businesses that have
generated higher return on capital.
Dow currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the chemical industry having favorable
Zacks Rank are
Akzo Nobel NV
Eastman Chemical Company
). All of them hold a Zacks Rank #2 (Buy).
AKZO NOBEL NV (AKZOY): Free Stock Analysis
AXIALL CORP (AXLL): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
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