St. Charles Herald-Guide

Dow Chemical to shut down PXC plant

By Heather R. Breaux - September 13, 2006

On Sept. 6 Dow Epoxy, a business unit of the Dow Chemical Company, announced that it intends to close the PXC plant at the St. Charles Operations site owned by Union Carbide Corporation in Hahnville by Oct. 31.

The closure is result of market factors such as increasing energy and natural gas costs.

“Even though our employees did everything they could to revitalize the business, market realities such as ever-increasing energy prices, natural gas costs, excess capacity and slow growth factors make the decision for Dow to exit this business unavoidable,” said Nawzer Parakh, Site Leader at SCO.

The PXC plant is one of 16 production facilities at the site and makes speciality chemicals that are used in a variety of end-use products such as automotive primers and shoe adhesives.

According to Parakh, the PXC plant employs 40 people, and they will be given the opportunity to work in other areas of the SCO facility.

In the statement released last week, Dow states that the PXC plant represents a small portion of operations at the Hahnville site, and its closure will have little impact on the companies economic contributions to the local community.

After the closure, SCO will continue to operate 15 production plants with more than 2,000 employees and contract employees.