Dow Chemical 2013 Annual Report Download - page 16

14 The Dow Chemical Company
Accer
vage
Shale Gas Advantage Positions Dow for Growth
Today,70percentofDow'sglobalethyleneassetsare
inregionswithcost-advantagedfeedstocks.OntheU.S.
GulfCoast,weareleveragingthebenetofpositive
shalegasdynamics,ecientlyallocatingcapitalto
capturefullmarginadvantageandfurtherenhance
ourindustry-leadingposition.In2013,weaccomplished
keymilestoneswithourU.S.GulfCoast-basedenterprise
growthprojects.
• TherestartofourSt.Charles(La.)ethyleneproduction
facilityinDecember2012iscontributingincremental
EBITDAof$250milliononanannualrun-ratebasis.
OursecondprojectinLouisiana,anethaneexibility
investment,isexpectedtocontributeanother
$250millionofEBITDAwhenfullyoperationalin2015.
• ConstructionisprogressingaccordingtoplanonaPDH
unitinFreeport,Texas,andwhentheplantcomes
onlinein2015,itisexpectedtodeliveranannual
run-rateEBITDAimprovementof$450million.
• In2014,weexpecttobeginconstructiononournew
world-scaleethylenefacilityinFreeport,Texas.
Mostofthisnewcapacitywillservegrowthmarkets
inNorthAmericaandLatinAmerica,andprovide
costadvantagetoawiderangeofdierentiated,
high-performancematerials.
Providing Cost Advantage for
Our Leading Plastic Brands
AspartofourfocusedU.S.GulfCoastinvestment
strategy,wealsoannouncedplansfornewspecialty
materialproductionunitsthatwillfurtherconnect
ourdierentiatedPerformancePlasticsproductslate
withcost-advantagedfeedstocks.
Dow is committed to our long-term strategy of building a vertically integrated science company
with higher, less volatile earnings. We are achieving this through the strategic integration of our
manufacturing operations with new supplies of advantaged feedstocks. Here, we continue to
strengthen the competitiveness of our innovation-driven, high-growth businesses, while creating
a strong foundation for global growth.
•InPlaquemine,La.,wewillexpandproduction
forhigh-performancematerialssuchasAGILITY™
high-performancepolymersandourdierentiated
NORDEL™metalloceneEPDM.Thesematerials
deliverunmatchedperformanceinanumberof
marketsrangingfromappliancestotransportation.
• Dowunveilsplansforadditionalproductionof
severalofitsleadingbrandsalignedtoitshigh-return
PerformancePlasticsfranchise.Thesematerials
willbeaimedatseveralattractiveandfast-growing
segments,includingexiblepackaging,hygieneand
medical,electricalandtelecommunicationsmarkets.
TheseprojectsharnessthevalueofDowresources
toenablestrongrevenuegrowth,whileaddressing
increasingcustomerdemandinfast-growingmarket
sectors,includingexiblefoodpackaging,electrical
andtelecommunications,hygieneandmedical,
andtransportation.
Sadara: A Catalyst for Growth in Emerging Markets
OurinvestmentintheSadaraChemicalCompany,a
jointventuredevelopedbyDowandSaudiAramco,isa
cornerstoneinourstrategytodrivelong-termprotable
growthinourinnovation-drivenbusinessesandinfast-
growingregionssuchasAsiaPacic,theMiddleEast,
AfricaandEasternEurope.Withmainprojectnancing
completeandconstructiononschedule,thisworld-scale,
fullyintegratedchemicalscomplexisontrackforstart-
upinthesecondhalfof2015.
$2.5B
p EBITDA expected to be delivered by U.S. Gulf
Coast projects once fully operational.