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Dow Chemical is moving forward with plans to build a $1.2 billion liquid-feedstock-based ethylene cracker in Rayong, Thailand, with that country's Siam Cement Co (SCC). The plant, which is expected to come onstream in 2010, will be located near Dow's existing joint ventures with SCC in Map Ta Phut, Thailand. Dow says it is considering a propylene oxide plant, based on the hydrogen peroxide-based process it developed with BASF, downstream from the unit. SCC will have a 67% stake in the project, which will be able to make about 900,000 metric tons per year of ethylene, as well as propylene and other coproducts. Dow says the new cracker, plans for which were first disclosed last November, will also enable an expansion of its polyethylene joint venture with SCC. SCC intends to separately invest about $460 million on new polyethylene and polypropylene plants. Dow CEO Andrew N. Liveris says the new venture "is another example of our asset-light investment approach, through which we will grow the [basic chemicals] businesses in joint ventures with strategic partners like SCC." Dow is also building or considering ethylene complexes in Saudi Arabia, Oman, and Kuwait.
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