Dow to build US$250 mn specialities hub in South China

US chemical firm Dow plans to build a US$250 million specialty chemical plant in Zhanjiang, China. It recently signed a MoU with the Zhanjiang Economic and Technological Development Zone Administrative Committee (Zhanjiang EDZ) to build the Dow South China Specialties Hub, a multi-year project that targets the construction of specialty polyurethane and alkoxylate facilities with combined production capacity of about 250,000 tonnes/year. The firm says it could add other products. Dow is also in the process of expanding a silicone facility in Zhangjiagang, China.

The Dow South China Specialties Hub will be located at Donghai Island in Zhanjiang, the farthest southern tip of mainland China. Unique advantages include a deep-water port, transportation networks, and a world-class chemical park with advanced infrastructure and services. The strategic location enables Dow to cover demand across Asia Pacific.

“Asia Pacific is the world’s largest chemicals market. Demands in the region are evolving towards high-value, specialty chemicals that help customers meet rapidly-developing megatrends in mobility, urbanization and sustainability,” said Jon Penrice, Dow Asia Pacific President. “The establishment of the Dow South China Specialties Hub would further position Dow to provide industry-leading materials science solutions to continue to grow with our customers in China and throughout the entire region.”

The new manufacturing hub would extend Dow’s local reach in markets including automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants and adhesives.

Aligned to Dow’s focus on low capital intensive, fast payback and high return growth projects, under the MOU the company would invest approximately US$250 million to construct specialty polyurethanes and alkoxylates facilities, with a total product capacity of approximately 250,000 tonnes. The site also offers opportunity for future development and expansion at the Specialties Hub.

Henry Ling, Vice-President of operations, Dow Asia Pacific, said, “The South China Specialties Hub will be built to Dow’s world-class environmental, health and safety standards and aligned to Dow’s recent commitment to become net carbon neutral by 2050. The new hub will adopt and employ advanced digital, intelligence and automation technologies to create a manufacturing space of world-class safety, productivity, reliability and sustainability performance.”

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(PRA)

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