The Dow Chemical Company and Solvay S A will set up the world''s largest hydrogen peroxide (HP) plant with a capacity of over 330 kilotons per annum (KTA) of hydrogen peroxide at 100 per cent concentration in Thailand.

The two companies will set up a joint venture for the construction of the plant, which is scheduled to be operational in 2010. The new HP plant will serve as a raw material source for the manufacture of propylene oxide (PO).

The hydrogen peroxide to be manufactured at the new plant is based on Solvays proprietary, high-yield hydrogen peroxide technology.

In addition, Dow and BASF Aktiengesellschaft are advancing negotiations for the construction of a world-scale, 390 KTA propylene oxide (PO) manufacturing facility, also in Thailand, using the innovative hydrogen peroxide to propylene oxide (HPPO) technology jointly developed by Dow and BASF.

Dow and Solvay would deploy this innovative technology in Asia, said Jacques Delmoitiez, president of BASFs Polyurethanes division.

Thailand is an attractive location for an HPPO investment due to its receptive business climate and easy access to the entire Asia-Pacific region, said Pat Dawson, president of Dow Polyurethanes.

This new facility will further support Dows growth plans for our downstream performance businesses in the region such as Dow Polyurethanes and is yet another example of our commitment to meeting the needs of our customers through establishing joint ventures with strategic partners, using an asset-light investment approach.

In addition, the fact that HPPO technology offers environmental benefits such as reduced wastewater and increased energy efficiency underscores Dow''s commitment to sustainability, as outlined in its 2015 sustainability goals.

Propylene for the proposed HPPO facility in Thailand would be supplied from the liquids cracker that Dow announced it was building jointly with The Siam Cement Group (SCG) in Thailand in October of 2006. The liquids cracker facility is expected be fully operational in 2010.

The hydrogen peroxide plant will implement the latest developments of Solvays unique high yield technology, said Eric Mignonat, general manager for Hydrogen Peroxide at Solvay. Solvay has been active in the Asian hydrogen peroxide market since 1988 through its Thai affiliate, Peroxythai, a leading supplier of peroxygen chemicals in Asia with the majority of its sales outside Thailand. A significant share of the capacity of the new plant will be available to support further development of Solvays Hydrogen Peroxide business within this fast growing region.