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Dow Resumes Operations of PO/PG Following Hurricanes

Petrochemical industry | 29 Sep 2005 IST | Polymerupdate.com
Supply Constraints Likely to Continue Due to Transportation

Midland, MI - September 26, 2005

The Dow Chemical Company ("Dow") provided an update today about the status of its production for propylene oxide (PO) and propylene glycols (PG) in Texas and Louisiana. The Company~s Freeport, Texas facility was shut down last week as a precautionary measure in preparation for Hurricane Rita.

"The plant sustained no significant structural damage during the hurricane and production of PO and PG has been restarted" said Antulio Borneo, commercial director, Dow Oxides & Glycols. "Over the next week or so, barring unforeseen circumstances, we will be ramping up production to normal levels."

The Company~s PO/PG plant at Plaquemine, Louisiana, resumed production last week after being shut down for Hurricane Katrina. Production at the Plaquemine plant was unaffected by Hurricane Rita.

"Even after PO/PG production is fully restored, supply conditions can be expected to remain constrained for the near term due to disruptions to transportation logistics in Louisiana and Texas resulting from both Hurricanes" said Borneo.

Following Hurricane Katrina, Dow declared Force Majeure and announced allocation levels of 90 percent of customers~ average monthly volumes for all grades of monopropylene glycol and dipropylene glycol products. Dow has been able to avoid allocating tripropylene glycol due to the hurricane at this point. However, the Company is accepting orders only from current tripropylene glycol customers in order to manage this situation.

"The unprecedented challenges posed by the impact of two hurricanes in less than a month, are likely to prolong this situation and to continue to restrict transportation and logistics on the U.S. Gulf Coast," said Borneo. "Continued challenges associated with transportation services availability may persist for an extended period of time, even after services are substantially restored. It will take time for conditions to return to normal."

Dow, with a global capacity of more than one billion pounds, is the industry leader in the manufacture of propylene glycol. Dow offers propylene oxide, monopropylene glycol (MPG), dipropylene glycol (DPG) and tripropylene glycol (TPG) globally. For more information about propylene glycol at Dow, visit the www.dowpo.com and www.dowpg.com websites.

With a global capacity of more than four billion pounds, Dow is the industry leader in the manufacture of propylene oxide. Dow has production facilities in Texas, Louisiana, Germany and Brazil.

About The Dow Chemical Company
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
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