Hurricane hits Dow plant, force majeure declared for PO and glycols

By David Reed, UT EditorMidland, Michigan--The Dow Chemical Co. has declared force majeure for propylene oxide (PO) and propylene glycols (PG) produced at Plaquemine, Louisiana, due to disruption of production, power, utilities and transportation services (including truck, rail and marine) resulting from Hurricane Katrina, according to a 1 Sept. announcement.The PO/PG plant at Plaquemine is currently idle as a result of disruptions in power and utilities caused by the hurricane, Dow said, adding that the plant equipment, however, was not damaged during the hurricane.But, in addition to the plant situation, transportation and logistics have been disrupted along the Gulf Coast and across southeastern United States in preparation for and as a result of the impact of the hurricane. "While we expect to resume operations of Plaquemine PO/PG within the next several weeks, continued challenges with transportation and logistics may persist for an extended period of time," said Antulio Borneo, commercial director for Dow Oxides & Glycols, in the prepared statement. "We cannot determine the full impact or duration of this situation on PO and PG supply at this point in time," said Borneo. "Dow's primary concern is the safety of our employees and the community. We will work to return to normal activities as soon as it is safe and responsible to do so," his statement added.Products included in this declaration of force majeure include: propylene oxide, propylene glycol industrial grade, propylene glycol USP/EP, dipropylene glycol, dipropylene glycol LO+, tripropylene glycol regular grade and tripropylene glycol acrylate grade.Dow, with a global capacity of more than one billion pounds, is the industry leader in the manufacture of propylene glycol. Dow offers propylene oxide, monopropylene glycol (MPG), dipropylene glycol (DPG) and tripropylene glycol (TPG) globally. For more information about propylene glycol at Dow, visit the www.dowpo.com and www.dowpg.com websites.With a global capacity of more than four billion pounds, Dow is the industry leader in the manufacture of propylene oxide. Dow has production facilities in Texas, Louisiana, Germany and Brazil."