Midland-based chemical giant Do today signed a memorandum of understanding with the Zhanjiang Economic and Technological Development Zone Administrative Committee (Zhanjiang EDZ) in China to build the Dow South China Specialties Hub.
The multi-year, $250 million project will provide Chinese customers local access to Dow’s portfolio of products and technologies.
The new manufacturing hub, according to Dow, will extend the company’s local reach, further enhancing supply reliability, responsiveness to market needs, and customized innovation. It also better positions customers for success in markets including automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants, and adhesives.
The Dow South China Specialties Hub will be located at Donghai Island in Zhanjiang, the farthest southern tip of mainland China. Advantages of the locations include a deep-water port, transportation networks, and a chemical park with advanced infrastructure and services. The location enables Dow to cover demand across Asia Pacific.
“Asia Pacific is the world’s largest chemicals market,” says Jon Penrice, president of Dow Asia Pacific. “Demands in the region are evolving toward high-value, specialty chemicals that help customers meet rapidly-developing megatrends in mobility, urbanization and sustainability. 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.”
Aligned to Dow’s focus on low capital intensive, fast payback, and high return growth projects, the company will 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.
“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,” says Henry Ling, vice president of operations for Dow Asia Pacific. “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.”
Liang Pei, party secretary of the Zhanjiang EDZ, says, “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. 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.”