MIDLAND, Mich. - The Dow Chemical Company will permanently cease production at its Train I toluene diisocyanate (TDI) production line at Texas Operations in Freeport, Texas. Effective immediately, the 130-million lb/yr train will be permanently shut down. The train was idled in December 2001 due to weak demand and abundant market supply for TDI at the time. It is one of two production trains at the Freeport site. Dow plans to continue operating Train II.

"To return production levels to pre-idling levels would require significant investment, which is not economically viable long-term," said Steven English, business director for Dow's isocyanates business. "Despite some improvements and recovery in raw material and energy costs since the third quarter of 2005, feedstock prices remain volatile. Moreover, we don't anticipate these costs to ease up in 2006. Pricing is still not where it needs to be, and margins have not yet reached the levels necessary to justify reinvestment."