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Dow Declares Force Majeure for Polypropylene at St. Charles Operations

Petrochemical industry | 09 Feb 2005 IST | Polymerupdate.com
Houston, TX - September 02, 2005

The Dow Chemical Company ("Dow") announced today that it has declared force majeure regarding its inability to supply certain polypropylene (PP) products produced at St. Charles Operations in Hahnville, Lousiana. St. Charles Operations is owned and operated by Union Carbide Corporation, a wholly-owned subsidiary of The Dow Chemical Company, and is located near New Orleans. Dow~s declaration is due to disruption of production, power, utilities, raw material supply and transportation services (including truck, rail and marine) resulting from "Hurricane Katrina."

There are approximately 30 products included in this declaration of force majeure accounting for an estimated 37% of Dow~s 1.35 billion pound nameplate capacity in North America. Production of PP at St. Charles Operations was initially idled as a standard precautionary measure ahead of the Hurricane last weekend. Plant equipment suffered no material damage during the storm, but the logistics infrastructure across the region was disrupted and it remains that way today.

"We are still assessing the full impact of Hurricane Katrina on St. Charles Operations production, raw material supply, and transportation capabilities," said Todd Prey, North American Product Director for polypropylene. "At this time we are unable to ship polypropylene from St. Charles Operations, and we cannot speculate how long this situation will last. Dow~s primary concern is the safety of our employees and the community. We will work to return to normal activities as soon as it is safe and responsible to do so."

With a global capacity of 2.6 billion pounds, Dow is an industry leader in the manufacture of polypropylene, with production facilities in Texas, Louisiana, Germany and South Africa.

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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