Dow plans to expand cellulosic production capacity in Asia-Pacific

Dow Chemical Company is planning to expand its cellulosic production capacity with a focus on the Asia-Pacific region.

The location and capacity of assets will be revealed on completion of a feasibility study, the company said.

The expansion is expected to meet growing demand for cellulosics in the construction industry, which has advanced nearly 15% in the past year.

Dow Construction Chemicals global general manager Colin Gouveia said that cellulose ether production sites in Germany and the US have allowed them to sustain their leadership position in this market.

"Expanding capacity will facilitate Dow to further leverage this position; maintain reliable supply for our customers; and demonstrate the company's commitment to invest in attractive, high-growth regions," Gouveia said.

Dow estimates that, in the next ten years, the construction industry will grow nearly seven percent annually in China and South Asia.

Dow produces many cellulose ether products including hydroxyethyl cellulose, hydroxyethyl methyl cellulose, and hydroxypropyl methyl cellulose, which are used in a variety of industrial segments.

Cellulosic products are used as thickening agents, mainly in the building and construction industry, to increase sag resistance, water retention, adhesion and workability in a variety of dry-mix applications.

Beyond production in cellulosic technology, Dow also has a broad product portfolio in acrylic, redispersible latex powder.

Dow's portfolio of advanced materials, speciality chemicals, agrosciences and plastics businesses provides a range of technology-based products and solutions to customers in high-growth sectors.