Dow Chemical has confirmed the locations for its planned new shale gas-fed polymer plants on the U.S. Gulf Coast, announced in March of this year and expected to be in full operation by 2017. The U.S. group said the new facilities expected to cost around $ 1 billion - along with other "high-return investments" in the region - have potential to deliver EBITDA of as much as $2.5 billion. Capacity numbers have not been disclosed.

Freeport, Texas, is the site selected for expansion of Dow's Affinity-brand high melt index polymers, used to strengthen the bonding properties of hot-melt packaging adhesives, as well as its Elite polymers for medical and packaging applications. Both plants will use the group's proprietary Insite catalyst technology.

Plaquemine, Louisiana, is the location chosen for the planned expansion of the metallocene-based Nordel-brand EPDM rubber facility, along with a new plant for high-performance LDPE food packaging grades such as the Agility brand.

Executive vice president Jim Fitterling said Dow will be further able to leverage its cost-advantaged position and R&D expertise to provide a competitive benefit for customers in "many of our most strategic markets."

The U.S. group's plans for capitalizing on the shale gas boom also include a 1.5 million t/y ethylene facility due to start up at Freeport in 2017 and a 750,000 t/y propane dehydrogenation plant expected to go on stream in 2015.