Dow plans alkoxylation capacity expansion, meets soaring US and EU demand for surfactants
22 Apr 2022 --- With a growing demand for higher alkoxylation capacity in the home, personal care and cleaning space, personal care company Dow is expanding its alkoxylation production capacity to provide more surfactants.
By-products of the alkoxylation process can be used in cosmetics for cleansing, conditioning, emulsifying and for antimicrobial effects.
Building upon previous capacity expansions, Dow will increase its global alkoxylation capacity by 70% vs. the 2020 baseline. Furthermore, the move is expected to support 10% to 15% annual growth rates within key end markets.
The business plan accounts for Dow’s potential impact on the planet, expecting to maintain “current carbon emissions levels.” This is made possible through its “efficient technologies and site improvements.
“Faster-payback, higher return investments”
The investments in the US and Europe are supported by supply agreements with customers and leading consumer brands, “expected to come online in 2024 and 2025,” shares the company.
“We have consistently seen increased demand for our alkoxylation capabilities aligned to industry sectors growing faster than GDP across the cycle,” says Brendy Lange, business VP of Dow.
Dow’s new capacity is expected to support 10% to 15% annual growth rates within key end markets.
“These latest investments demonstrate our commitment to customer collaboration and innovation backed by industry-leading integration.”
Building on previous expansion
The current expansion plan develops Dow’s previous alkoxylation capacity expansions in Spain, 2019 and Louisiana, 2018. The two are described to be on track to appear online this year.
“In total, these and other efficiency projects are expected to generate more than US$150 million in run-rate Earnings Before Interest, Taxes, Depreciation, and Amortization by 2025, with returns greater than 20%,” shares Dow.
Tapping into Dow’s products
The company’s alkoxylation capacity transforms materials into “safe and sustainable ingredients,” widely applicable in cosmetics, household or industrial cleaning, home or personal care, oil and gas and pharmaceuticals.
Examples of Dow’s product line which include ingredients processed by alkoxylation include Tergitol (surfactants), Ucon (lubricants), Ecosurf (surfactants), Carbowax (polyethylene glycol) and Sentry (polyethylene glycol).
Further, in Dow’s latest innovations, various ingredients and products derived from sustainable sourcing using upcycled rice husk and corn, including natural materials, can be found in its ECOllaboration collection. The company featured eight formulations, out of which four were key ingredients in its product launch.
Edited by Venya Patel
