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DOW Announces $100 Million Investment to Expand Silicone Capabilities

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Key Takeaways

  • Dow will invest about $100 million through 2027 to expand specialty silicones manufacturing.
  • LSR expansions in Kentucky and China are set for 2027 to support rising demand and resilience.
  • New electronics materials capacity in China and Japan comes online this year, with more due in 2027.

Dow Inc. (DOW - Free Report) has announced a series of targeted investments totaling approximately $100 million through 2027 to strengthen its global specialty silicones manufacturing and innovation. The initiative aims to support rising demand in fast-growing sectors such as mobility, electronics, and healthcare while enhancing supply chain resilience globally.

The investment plan includes expanding liquid silicone rubber (LSR) production facilities in Carrollton, KY, and Zhangjiagang, China, with operations expected to begin in 2027. Dow is also increasing capacity for engineered silicone materials used in advanced electronics applications such as semiconductor packaging, thermal and electrical protection. New expansions in Songjiang, China, and Fukui, Japan, are scheduled to come online this year, while additional projects in Auburn, MI, and Zhangjiagang are planned for 2027.

To support customer innovation, Dow has expanded its Cooling Science Labs in Shanghai and Midland, MI. These facilities will support the development of next-generation thermal management technologies.

This initiative will complete the silicones investment series first disclosed during Dow’s 2024 Investor Day. As the world’s largest integrated silicones producer, Dow continues to position itself to meet growing global demand through strategic manufacturing expansion and customer-focused innovation.

DOW shares have gained 8.3% over the past year compared with the industry’s 2.3% growth.

Zacks Investment Research
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DOW’s Zacks Rank & Key Picks

DOW currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are Nucor Corporation (NUE - Free Report) , Newmont Corporation (NEM - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

While NUE and NEM sport a Zacks Rank #1 each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NUE’s 2026 earnings is pinned at $16.34 per share, indicating a 111.93% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the remaining two, with an average surprise of 8.10%. NUE’s shares have jumped 84.2% over the past year.

The Zacks Consensus Estimate for NEM’s 2026 earnings is pegged at $9.91 per share, indicating a rise of 43.83% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. NEM’sshares have gained 58.8% over the past year.

The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 34 cents per share, indicating a 17.24% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%.

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