Dow plans manufacturing expansions in Estarreja, Portugal

The Dow Chemical Company, September 29, 2006
Midland, MI – September 29, 2006 – The Dow Chemical Company announced today that it plans to expand manufacturing capacities for two products at its production site in Estarreja, Portugal.
Dow Polyurethanes, a business unit of Dow, intends to expand MDI production at the site, resulting in a significant increase in the Company’s global MDI capacity. Scheduled for completion in 2009, the added capacity will help address strong market demand for the product, which is currently estimated at 8 billion pounds per year globally.
In addition, Dow Building Solutions announced its intention to add additional manufacturing capacity for STYROFOAM™ brand building insulation products. This planned expansion is subject to all customary final approvals.
“With global demand for MDI growing at a steady pace, we are constantly looking for simple ways to streamline our operations and add incremental capacity wherever we can,” explained Pat Dawson, vice president of Dow Polyurethanes. “At the Estarreja site we have the opportunity to realize an incremental capacity addition quickly and cost-effectively.”
MDI is a major raw material used in the production of rigid polyurethane foams and polyurethane elastomers. Demand for MDI is currently growing at 6 to 7% annually and that is expected to continue. Overall global demand is particularly strong in end-use markets such as home, commercial, and industrial foam insulation, as well as refrigeration, appliances and coatings, sealants, elastomers and adhesives.
“Building on our new PMDI facility at Freeport in Texas, which became fully operational in May 2006, our plans for Estarreja underscore our commitment to the global polyurethanes industry and to our customers,” said Dawson.
The planned STYROFOAM expansion would enhance Dow’s ability to meet local customer needs for residential and commercial construction insulation products.
About Dow Polyurethanes
Dow is the world’s largest producer of polyether polyols, a leading producer of quality aromatic isocyanates, such as MDI and TDI, and a major supplier of propylene oxide, an essential component of polyether polyols. Dow’s polyurethanes products and formulated systems are used in rigid foams, flexible foams, adhesives, sealants, coatings, and elastomers, as well as many other applications. Dow also offers the latest in polyol technology with its VORANOL™ VORACTIV™ polyols, part of an ongoing initiative by Dow to lead the industry in providing high-performance products with reduced VOC-emissions. For more information, visit www.dowpolyurethanes.com, www.pusystems.com and www.voractiv.com.
About STYROFOAM™ brand insulation and Dow Building Solutions
Invented by Dow more than 60 years ago and identified worldwide by its distinctive Blue** color, STYROFOAM is the most widely recognized brand in insulation. Today, the STYROFOAM brand includes a variety of building insulation products.
Dow Building Solutions delivers innovative products and application expertise that improves living and working environments. Its leading product families include STYROFOAM™ Insulation Solutions, WEATHERMATE™ Weather Barrier Solutions, SYMMATRIX™ Oriented Composites, and GREAT STUFF™ Adhesives and Sealants.
To learn more about STYROFOAM and Dow Building Solutions, visit www.styrofoam.com.
About The Dow Chemical Company
Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
®™* Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow
** The color Blue is a trademark of The Dow Chemical Company

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