MIDLAND, Mich. (March 21)—Dow Chemical Co. said it won't restart production of a toluene diisocyanate line at its Freeport, Texas, facility that has been idle since December 2001
The firm suspended the 130,000 ton capacity line in because of overcapacity in the market for the polyurethane curative. The company decided it would cost too much to restore the line, while TDI demand remains weak and supply abundant.
Another line at the facility will continue to operate.
Feedstock prices remain volatile, said Steven English business director of Dow Chemical's isocyanates business. Although there has been some improvement in raw material and energy expenses since the third quarter last year, Dow Chemical doesn't expect costs to ease in 2006.
The executive said pricing isn't where it needs to be and margins are too low to justify reinvestment.