Dow Chemical 2011 Annual Report Download - page 152

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Capital Expenditures
Capital spending, which includes capital spending by consolidated variable interest entities ("VIEs"), was $2,687 million in
2011, $2,130 million in 2010 and $1,683 million in 2009. In 2011, approximately 36 percent of the Company’s capital
expenditures were directed toward additional capacity for new and existing products, compared with 39 percent in 2010 and
43 percent in 2009. In 2011, approximately 15 percent was committed to projects related to environmental protection, safety,
loss prevention and industrial hygiene compared with 17 percent in 2010 and 20 percent in 2009. The remaining capital was
utilized to maintain the Company’s existing asset base, including projects related to productivity improvements, energy
conservation and facilities support.
Major projects underway during 2011 included: the design and construction of a new chlor-alkali production facility to
replace existing facilities in Freeport, Texas; construction of a new propylene oxide production facility using hydrogen
peroxide to propylene oxide technology, a distribution terminal and related infrastructure and utilities in Thailand; design and
construction of a new research and development facility in Indianapolis, Indiana, for Dow AgroSciences; construction of the
new Business Process Service Center in Midland, Michigan; upgrades of low density polyethylene facilities in Freeport and
Seadrift, Texas; a new centrifugal ethylene compressor in Freeport, Texas, to reduce spot purchases of ethylene; continued
furnace rehabilitations to increase energy utilization and to maintain continued operations of ethylene production at St. Charles,
Louisiana; the drilling of new brine wells in Freeport, Texas, and Aratu, Brazil; and construction of a market development and
production plant in Midland, Michigan, for future battery component initiatives. Additional major projects included installation
of a new furnace system in Deer Park, Texas, to support methyl methacrylate production; and design and construction of a
global research and development center in Seoul, South Korea, to support Dow Electronic Materials. Because the Company
designs and builds most of its capital projects in-house, it had no material capital commitments other than for the purchase of
materials from fabricators and construction labor. The Company expects capital spending in 2012 to be approximately
$2.5 billion.
Contractual Obligations
The following table summarizes the Company’s contractual obligations, commercial commitments and expected cash
requirements for interest at December 31, 2011. Additional information related to these obligations can be found in Notes N, P,
Q, R and X to the Consolidated Financial Statements.