Dow Chemical Reopens Hahnville Plant

Jan 10, 2013

Dow Chemical Co. has successfully restarted its St. Charles Olefins 2 Plant near Hahnville after three years of inactivity.

The Advocate reports the plant has been producing ethylene, which is used in alcohol- and plastic-based products, since Dec. 25. Dow said it expects the plant will add $150 million to earnings before interest, depreciation and amortization.

The company said restarting the plant is the first major milestone in Dow's Gulf Coast investment strategy. Dow can reduce the amount of ethylene it buys, lowering its production costs.

Dow's U.S. strategy involves increasing its competitive advantage by producing more ethylene and propylene at its Gulf Coast plants, which use low-cost natural gas from shale formations as a feedstock.