Recently, Dow Chemical announced that the company has decided to close the polyether polyol production plant at its San Lorenzo plant in Santa Fe province, Argentina, mainly due to the global polyol oversupply that has caused the San Lorenzo plant to continue to operate at a low start-up rate, which is difficult to maintain.
Polyether polyols are a class of polyol compounds linked by ether bonds and are typically prepared by polymerization reactions with epoxides (e.g., ethylene oxide or propylene oxide). These compounds have multiple hydroxyl (-OH) groups that allow them to react with other chemicals, and play an important role in the production of polyurethanes in particular.
The molecular weight of polyether polyols can vary, affecting their physical and chemical properties, such as water solubility and lipophilicity. Polyether polyols are an important class of chemical materials that are widely used in polyurethane products, coatings and adhesives because of their special physical and chemical properties. With the rapid development of the industry, the application prospects of polyether polyols are gradually expanding and are being widely researched and developed.
The commercial drivers for this final decision are consistent with the company’s strategy to optimize its asset footprint,” Dow Chemical said. Utilization of the San Lorenzo production unit has been low, and there is excess polyol capacity globally. Dow Chemical has been working hard to minimize any potential impact and is well-positioned to meet the needs of our customers and provide a product portfolio that serves their needs. These customers may also be able to purchase products from other suppliers at competitive prices, as they currently do.” Dow Chemical said it will continue to work closely with all stakeholders at the San Lorenzo plant to ensure an “orderly and smooth” transition.
Dow Chemical was reportedly planning to stop producing polyurethane there as early as 2021, but pressure from labor unions and the government at the time prevented it from making the decision to shut down production. Dow Chemical acknowledged that 40 employees at the plant would be affected by the closure, but the union put the number at 120. The Union of Unionized Petrochemical Workers and Employees, which represents the plant’s employees, said the company decided to close the plant without informing the workers’ representatives, according to local media reports in Santa Fe province. However, Dow Chemical said the company had notified workers as required by Argentine labor law.