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Dow starts commercial operations of its adhesive and gap filler production line at its Polyurethanes Systems House in Ahlen, Germany

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Dow (NYSE: DOW) has announced the completion of its new VORATRON™ Polyurethanes Systems adhesive and gap filler production line at its Polyurethanes Systems House in Ahlen, Germany. This new line will increase production capacity tenfold, meeting the rising demand for battery assembly solutions in the e-mobility sector. The VORATRON™ products, which include high-strength adhesives and thermally conductive composites, are pivotal for electric vehicle battery designs, supporting lightweight, efficient assembly processes and effective thermal management. The facility is powered by 100% renewable energy, aligning with Dow’s sustainability goals. According to Dr. Esther Quintanilla, Dow’s Global MobilityScience™ Marketing Director, this investment is poised to capture the growing market for electric vehicles, which are expected to constitute over 25% of new passenger car sales by 2030.

Positive
  • Tenfold increase in VORATRON™ Polyurethanes Systems production capacity.
  • New production line supports growing demand in the e-mobility segment.
  • Products help improve mechanical and thermal management performance in EV batteries.
  • Facility operations powered by 100% renewable energy.
  • Supports automotive industry goals for vehicle weight reduction.
  • Enhances processability with low squeeze force and optimized rheology.
  • High-performance, thermally conductive adhesives and gap fillers improve safety, range, and reliability of EVs.
  • Strategically timed investment to capture the increasing market share of electric vehicles.
Negative
  • None.

Insights

The announcement of Dow's expanded adhesive and gap filler production line aligns perfectly with the burgeoning demand for electric vehicles (EVs). Notably, the projection that one in four new cars sold by 2030 will be electric underscores the tremendous growth potential in this market. Dow's strategic move to enhance production capacity by tenfold is proactive and positions the company to capitalize on this surging demand. It shows Dow's readiness to support the critical components of EV battery assembly, ensuring they stay relevant and competitive in the evolving automotive landscape. For retail investors, this translates to a promising long-term growth trajectory for Dow, potentially boosting stock performance as the EV market expands.

Dow's decision to increase production capacity by tenfold for its VORATRON™ Polyurethanes Systems is a significant financial commitment that is expected to pay off, given the anticipated rise in EV adoption. The company's use of renewable energy to power this facility also aligns with global sustainability trends, which could attract environmentally conscious investors. In financial terms, this expansion could drive higher revenue streams and improve profit margins as economies of scale are realized. Retail investors should watch for future earnings reports to see the tangible impact of this capacity increase on Dow's financial health. Additionally, leveraging its 100+ years of experience in the transportation sector could give Dow a competitive edge in securing significant contracts with EV manufacturers, further solidifying its market position.

The VORATRON™ Polyurethanes Systems products offer innovative solutions such as low-density products for weight reduction and thermally conductive adhesives and gap fillers important for EV battery performance. These features address key challenges in the EV industry, such as thermal management and safety, which are paramount for the reliability and range of electric vehicles. By advancing these technologies, Dow not only meets current market needs but also sets the stage for future advancements in EV battery design. This technological edge can attract key original equipment manufacturers (OEMs) and tier suppliers, enhancing Dow's market share in the e-mobility segment. For investors, this technological advantage signifies a robust potential for sustained growth and market leadership.

New capacity will support and advance battery assembly solution growth in the e-mobility segment

MIDLAND, Mich., May 16, 2024 /PRNewswire/ -- Dow (NYSE: DOW) announced today the mechanical completion of its new VORATRON™ Polyurethanes Systems adhesive and gap filler production line at its Polyurethanes Systems House in Ahlen, Germany.

Dow will increase capacity of its VORATRON™ Polyurethane Systems product family tenfold -ensuring it can meet increasing demand for these materials in battery assembly solutions for the e-mobility segment.

Dow VORATRON™ Polyurethane Systems products, such as high-strength adhesives and thermally conductive composites, are crucial to achieving the fast-evolving demands of mechanical and thermal management performance that different electric vehicle battery designs require. VORATRON™ Polyurethane Systems help Tiers and OEMs advance their performance, processing, and sustainability goals through:

  • Low-density products support the automotive industry's ambition for vehicle weight reductions.
  • Improved processability, such as low squeeze force and optimized rheology and kinetics, provide versatility and efficiency to different assembly processes.
  • High performance thermally conductive adhesives and gap fillers that enable the combination of tailored mechanical properties and efficient thermal management which are critical to safety, range, and reliability of electric vehicles.

Powered by 100% renewable energy, the site operations also help advance sustainability goals for Tiers and OEMs. All process machines, forklifts and movers at the facility are driven by electrical motors, supporting Dow's continued efforts to reduce carbon emissions around the world.

"By 2030, more than one in four new passenger cars sold will be electric vehicles. Dow's investment in this adhesive and gap filler production line is well-timed to capture this new demand," said Dr. Esther Quintanilla, Dow's global MobilityScience™ marketing director. "The battery is the key to the automotive evolution, and this advancement allows us to serve the current and future EV segment. Dow is committed to supplying our customers with a reliable supply of high-performance materials for the battery assemblies, which are among the most critical technologies enabling this growth."

Dow builds on 100+ years of transportation experience and expertise in application development to deliver innovative, cutting-edge solutions that keep the world moving. For more detailed information on Dow's ongoing commitment to the mobility industry visit: https://www.dow.com/mobilityscience.

For more information about Dow's portfolio of advanced battery pack gap filler options, visit: https://www.dow.com/en-us/brand/voratron.html.

About Dow

Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting Dow.com.

For further information, please contact:

Sarah Young
Phone: +1 989-638-6871
syoung3@dow.com

X: https://twitter.com/DowNewsroom 
Facebook: https://www.facebook.com/dow/ 
LinkedIn: http://www.linkedin.com/company/dow-chemical 
Instagram: http://instagram.com/dow_official 

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SOURCE The Dow Chemical Company

FAQ

What recent production line has Dow started commercial operations for?

Dow has started commercial operations for its new VORATRON™ Polyurethanes Systems adhesive and gap filler production line at its Polyurethanes Systems House in Ahlen, Germany.

How much will Dow's production capacity increase with the new VORATRON™ Polyurethanes Systems line?

Dow will increase its VORATRON™ Polyurethanes Systems production capacity tenfold.

What segment will benefit from Dow’s new production line?

The e-mobility segment, specifically battery assembly solutions for electric vehicles, will benefit from Dow’s new production line.

What are the advantages of VORATRON™ Polyurethane Systems products for electric vehicle batteries?

VORATRON™ Polyurethane Systems products offer high-strength adhesives and thermally conductive composites, improving thermal management, mechanical performance, and enabling vehicle weight reduction.

How is Dow’s new facility contributing to sustainability goals?

The facility is powered by 100% renewable energy, and all process machines, forklifts, and movers are driven by electrical motors.

What market trend does Dow aim to capture with its new production line?

Dow aims to capture the growing market demand for electric vehicles, which are expected to make up over 25% of new passenger car sales by 2030.

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