MIDLAND, Mich. - Dow Chemical Company (NYSE: DOW), a global leader in material sciences, has announced the commencement of its expanded propylene glycol (PG) production capacity in Rayong, Thailand.
The company's facility in Map Ta Phut has increased its PG output by 80,000 tons annually, resulting in a total production capacity of 250,000 tons per year. This expansion positions the Map Ta Phut facility as the largest of its kind in the Asia Pacific region.
The strategic expansion leverages the site's back-integration, which includes a cost-competitive supply of key raw materials such as propylene oxide (PO). This integration ensures a reliable supply chain to meet the growing demand in high-value PG markets, including personal care, pharmaceutical, food, and flavor & fragrance industries.
Jane Palmieri, president of Industrial Intermediates & Infrastructure at Dow, emphasized the significance of the expansion in one of the world's most dynamic regions. She stated that the increased capacity not only optimizes the company's asset infrastructure but also strengthens its innovation capabilities and leadership position both regionally and globally.
Dow's PG franchise is known for transforming basic chemical building blocks into high-quality ingredients essential for a variety of everyday products. The company is committed to sustainable PG production, utilizing lower carbon energy sources and implementing bio-circular and circular feedstocks. These efforts are part of a mass balance approach under the ISCC PLUS certification, which Dow intends to secure for the Map Ta Phut PG facility by the end of 2024.
The information provided is based on a press release statement from The Dow Chemical Company.
InvestingPro Insights
Dow Chemical Company (NYSE: DOW), with its recent expansion in propylene glycol production, is reinforcing its position in the Asia Pacific market. This move aligns with the company's growth strategy and commitment to sustainability. A look at Dow's financial health through InvestingPro data shows a solid market capitalization of $41.53 billion, suggesting a strong presence in the market. The company's P/E ratio, as of the last twelve months leading up to Q1 2024, stands at 27.24, indicating investor confidence in its earnings potential.
InvestingPro Tips highlight that management's aggressive share buyback strategy could be a sign of confidence in the company's value. Additionally, Dow is expected to remain profitable this year, with net income projected to grow. This is particularly noteworthy for investors considering Dow's position as a prominent player in the Chemicals industry.
It's worth mentioning that while Dow is trading at a high earnings multiple, the stock typically exhibits low price volatility. This could appeal to investors looking for stable investments in the current economic climate. For those interested in deeper analysis, there are over 9 additional InvestingPro Tips available at https://www.investing.com/pro/DOW, which could provide further insights into the company's performance and market trends. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips.
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