The Dow Chemical Company has closed its low density polyethylene (LDPE) production facility at Sarnia, Ontario, Canada.
“The closing of our LDPE facility in Sarnia was a difficult decision, but due to the suspension of ethylene shipments through the Cochin pipeline and not being able to secure an alternate source of economically sustainable ethylene it was unavoidable,” said Glenn Wright, Dow global business director for LDPE.
Dow’s focus is now on generating as much capacity as possible from its LDPE plant in Freeport, TX. The company reports it will fulfill contractual obligations, but may not be able to maintain the current level of supply to all customers.
In March 2006, ethylene shipments to Sarnia through the Cochin pipeline were unexpectedly suspended by the pipeline’s owner, BP, for safety reasons. Multiple options were considered, but none could meet Dow’s needs. The LDPE plant at Sarnia has a capacity of 220 MM/lbs. annually and employs 33 people.