The DOW Chemical Company plans to invest on silicone-based solutions for targeted end-markets
Published Date | 2018 September 27
The Dow Chemical (Dow) plans to invest in silicone franchise to cater to the demand of this product among global giants of industries, including home and personal care, electrical and industrial, etc.Global: Dow’s investment plan addresses the rapid growing demand of silicones among the major players of growing market of home and personal care, electrical goods, consumer goods, construction industries, etc. Moreover, they have identified that it is profitable to invest in silicone market, which require low capital and offer high return on investment on upstream and downstream silicone franchise. Thus, the company’s investment decision will have a positive impact on the surging customer demand for silicones in the above-mentioned industries. Dow plans for a series of investment on silicone-based solutions for a group of targeted end-markets, which demands silicone and silicone components as a major raw material for the end products. The investment plan of company includes, a series of incremental projects over the next three years on siloxane debottleneck and efficiency improvement in order to increase capacity and company’s efficiency in siloxane manufacturing facilities across the globe. In addition to this, Dow plans to invest on a new hydroxyl functional siloxane polymer plant in Kentucky and Carrollton, which will uplift Dow’s polymer capacity in United States by 65%, coupled with providing latest technology to accelerate innovation with siloxane polymer customers. Furthermore, they have expansion plans for company’s projects on high-value performance silicones products and intermediates, including construction of a new specialty resin plant in Zhangjiagang, Jiangsu, China. This plant will have the potential to offer resin intermediates for high value silicone products, which include products from home and personal care, antifoams, moldable optics for lighting and pressure sensitive adhesives. According to Jim Fitterling, CEO of The Dow Chemical Company, the projects they have announced will potentially support their “ability to continue to meet strong global demand for Dow’s silicones materials, enabling us to grow and innovate more quickly with customers and advancing our leading positions in our targeted end-markets”. As a global key player in Chemical industry, providing solutions for customers in high-growth markets such as infrastructure, packaging, and consumer care products, the company’s decision clearly hints towards a positive growth of silicone market in upcoming years. According to BlueWeave Consulting, The growth of silicone market is strong in regions, like North America and Asia-Pacific, owing to the growth of end-product industries. In Asia-Pacific, China is the largest consumer to the surging investments in industries like electronics, petrochemicals, automotive and textiles. Thus, a major silicone-solution provider, like The Dow Chemical is investing in a dedicated plant in China due the increased customer traction for silicon and silicon components. In addition to this, the global silicon market has an accelerated demand, across industries, owing to growth of the end-user industries like automotive, aerospace, construction, infrastructure, textile, electronics and electrical products, etc. The market is driven by the product’s ability to withstand high pressure, chemical reactions and high temperature, ideal for industrial processes. Thus, they can be easily molded into solid, semi-solid, liquid and oil-form, and can be used for the production of various end-products and have rising demand from a number of growing industries.