Dow signs MoU to establish South China Specialties Hub

Dow signs MoU to establish South China Specialties Hub

Dow recently signed a Memorandum of Understanding (MoU) with the Zhanjiang Economic and Technological Development Zone Administrative Committee (Zhanjiang EDZ) to build the Dow South China Specialties Hub.

Dow
recently signed a Memorandum of Understanding (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 providing
customers local access to Dow’s portfolio of high value products and innovative
technologies.

“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, further enhancing supply
reliability, responsiveness to market needs and customized innovation, and
better positions customers for success 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 $250 million to
construct specialty polyurethanes and alkoxylates facilities, with a total
product capacity of approximately 250,000 tons. 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.”

“Dow
is a global leader of material science solutions and we are happy to see its
planned investment for establishing a specialties manufacturing hub in
Zhanjiang,” said Liang Pei, party
secretary of the Zhanjiang EDZ
. “We are committed to turning our
petrochemical park at the Donghai Island into a world-class one, providing a
modern infrastructure and necessary supportive policies to Dow and the park’s
other companies.”

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.

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