Dow, a multinational chemical company, has announced its plan to close its propylene oxide (PO) plant located in Freeport, Texas, by the end of 2025.

This decision comes as the unit is approaching the end of its operational life and is part of Dow's strategic efforts to optimize cost and supply arrangements. The PO plant will continue its operations until the end of 2025, while the downstream polyether polyol plant at the same site will remain operational even after the closure of the PO plant. Currently, the Freeport PO plant supplies essential raw materials to the polyol plant.

Following the closure, Dow will utilize its global PO assets or rely on third-party suppliers to ensure a stable supply of PO for the polyol plant's operations. Additionally, the company is investing in enhancing its logistics capabilities by implementing PO tanks, pipelines, and new barges to facilitate the transportation of external PO to the site.

Source: DOW, Edited by PUdaily