Communicator

DOW Chemical’s industrial complex, in Terneuzen, The Netherlands

24^th Jan 2025

Dow's decision to indefinitely postpone the maintenance of its No. 3 ethylene cracker (LCH-3) at Terneuzen reflects the company's strategy to navigate challenging market conditions in Europe.

Initially planned for 2023 and later rescheduled for 2025, the maintenance has now been deferred indefinitely due to weak regional demand and cost-cutting measures.

The idling of this cracker, which has a nameplate capacity of 680,000 tons per year of ethylene, will help Dow reduce expenditures while maintaining its ability to meet customer commitments through its other two operational crackers (LCH-1, LCH-2) at the site.

This move highlights the broader struggles in Europe's petrochemical sector, where subdued demand and oversupply have pressured margins.

The closure of downstream derivative production facilities at the DOW Chemical’s industrial complex, in Terneuzen, such as Trinseo's ethylbenzene-styrene unit and Olin's cumene unit in 2023, has further exacerbated the challenges in placing cracker products in the market.

Dow's flexibility in feedstock usage at Terneuzen has historically supported profitability, but current conditions necessitate operational adjustments.

The timeline for restarting LCH-3 remains uncertain and will depend on market recovery and investment in required maintenance.

#terneuzen  #netherlands  #dowchemical  #steamcracker