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[Industry Focus]：Dow Chemical 120000 Tons/Year Combined Polyether Polyol Technical Transformation Project EIA Publicity

Read： 523 Time：8months ago Source：张家港市人民政府、化工新材料

On March 4, the Zhangjiagang Free Trade Zone Management Committee of Jiangsu Province accepted the environmental impact assessment document of the technical transformation project of Dow Chemical (Zhangjiagang) Co., Ltd. with an annual output of 120000 tons of combined polyether polyol product structure adjustment and publicized it.

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Background Analysis of 1. Technology Transformation

as an important subsidiary of Dow Chemical Company, Dow Chemical (Zhangjiagang) Co., Ltd. has established a number of large-scale production projects in the development of many years. However, as market competition intensifies and costs continue to rise, the company faces a decline in product margins.

Specifically, the traditional combination polymerized Polyols the maturity of production technology makes the market increasingly competitive, Dow Chemical's competitive advantage gradually weakened. At the same time, the continued rise in labor costs and raw material costs has further compressed the company's profit margins. In addition, the downstream end industries of polyurethane products, such as refrigerators and water heaters, have entered a bottleneck period, and the growth in demand for raw materials is limited, which also puts pressure on Dow Chemical's product sales.

Therefore, in order to enhance product advantages, enhance market competitiveness, increase profit margins, and promote the company's sustainable operation and a new round of development, Dow Chemical (Zhangjiagang) Co., Ltd. decided to carry out technical transformation of the existing combined polyether polyol production line.

2. technical transformation measures

in view of the above background, Dow Chemical (Zhangjiagang) Co., Ltd. has formulated detailed technical transformation measures.

1. The company plans to adjust the existing combined polyether polyol production line, reduce the production capacity of some traditional products, and turn to the production of water-based polyurethane dispersion intermediate products. This initiative aims to optimize the product structure, reduce production costs, and improve the environmental performance of the product.

2. The company will use waterborne polyurethane dispersion as the key raw material to produce high quality combination polyether polyol products. This high quality product has the advantages of no solvent, no organic amine, no freon and other residues, wear resistance, uniform and stable particle size distribution of raw materials, and is suitable for more high-end and more extensive polyurethane product industry.

In order to achieve this goal, the company will invest 65 million yuan for technological transformation. After the completion of the transformation, the company will form a high quality combination of polyether polyol products production capacity of 32000 tons/year, the traditional combination of polyether polyol products production capacity of 88000 tons/year production capacity. Although the product structure has been adjusted, the total production capacity of the whole plant's combined polyether polyol is still 120000 tons/year, which remains unchanged.

Through this technological transformation, Dow Chemical (Zhangjiagang) Co., Ltd. will be able to improve product quality and environmental performance to meet the market demand for high quality polyurethane products. At the same time, the optimized product structure will help reduce production costs, improve product profit margins, and enhance the company's market competitiveness.

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Dow Chemical Zhangjiagang Production Base is a chemical product production base invested and constructed by Dow Chemical Company in Zhangjiagang, Jiangsu Yangtze River International Chemical Industrial Park. It is one of Dow's largest manufacturing bases in the Asia-Pacific region. Since the construction of the base in early 2002, a number of factories and projects have been built in more than 20 years.

At present, Dow Chemical's Zhangjiagang production base includes Dow Chemical (Zhangjiagang) Co., Ltd., Dow Silicone (Zhangjiagang) Co., Ltd., Lanke Chemical (Zhangjiagang) Co., Ltd., Shengxi Ao Polymer (Zhangjiagang) Co., Ltd. and Uni Weixun (Zhangjiagang) Chemical Co., Ltd.

In Zhangjiagang Yangzijiang International Chemical Industrial Park, which covers an area of 1.1 million square meters, Dow Chemical has an alcohol ether factory with an annual output of 120000 tons, a combined polyether polyol production line with an annual output of 120000 tons, a siloxane plant and a fumed silica plant with an annual output of 210000 tons, a world-class gas phase polyethylene catalyst plant, and a complex silicone downstream product production line.

On January 26, 2024 local time, Dow Chemical announced that it would lay off about 2000 employees worldwide and close some production facilities. At the same time, it will further evaluate the asset allocation in Europe and other places. The layoffs are equivalent to 5% of Dow Chemical's total workforce. Dow Chemical said that the purpose of the above-mentioned measures is to reduce expenditures by US $1 billion this year to cope with the slowdown in global economic growth and lower market demand.

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