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Chemicals giant delays construction of US$6.5bn plant in Canada amid tariff uncertainty

A diagram of the layout for Dow's planned Path2Zero facility in Alberta, Canada A diagram of the layout for Dow’s planned Path2Zero facility in Alberta, Canada (Image: Dow)

Chemicals firm Dow will delay the construction of a US6.5 billion (CAN$9 billion) chemicals plant in Alberta, Canada, until market conditions improve.

The company told investors last week that erratic trade policies under US President Donald Trump would cause volatility and were likely to put pressure on its earnings.

It said it would delay its Path2Zero project in Alberta, which includes building a new ethylene cracker and increasing polyethylene capacity by 2 million metric tonnes per annum. The net-zero emissions facility is part of the company’s plans to become carbon neutral by 2050.

Site preparation work for the facility started last year and construction on administrative buildings is nearly complete.

Dow said it would continue with engineering and procurement work, in preparation for construction work to restart at a later date.

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