Dow is starting up its new 600,000 t/yr high density polyethylene/linear low density polyethylene (HDPE/LLDPE) swing unit in Freeport, Texas, the company confirmed today.
The new line is in "start-up" mode, according to one source, who said the unit has produced some pounds and is in the process of qualifying that the resin produced meets certain specifications. A company spokesperson today confirmed only that the unit is "coming online" but provided no further details.
The unit is expected to produce several LLDPE grades, including some LLDPE octene resin, but it also will have the capability to produce HDPE grades. The new unit is the first new capacity to start up in the North America PE market since the start-up of Nova Chemical's new 425,000 t/yr LLDPE plant in Ontario, Canada, in the first quarter of 2024. That unit also produces some octene grades.
The additional capacity from Dow adds new resin to an already well-supplied market. In the short-term, sources said Dow has some maintenance activity ongoing at some other North American PE units, so the addition of the new capacity is not expected to be felt by the market in June or even early July.
Once it ramps up to higher rates, much of the new material is expected to be destined for the export market, which has been facing some demand challenges this year due to tariff threats in China and Europe, and the potential for a new anti-dumping duty against US and Canadian PE in Brazil.
The next new capacity addition is not expected to start up until 2026, with the start-up of an additional 2mn t/yr of HDPE capacity from Chevron Phillips Chemical's joint venture with Qatar-based QE.
