Dow: MoU to establish South China Specialties Hub

Dow announced that it has 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 the company’s portfolio of products and technologie

Under the MOU the company would invest approximately USD 250 million to construct speciality polyurethanes and alkoxylates facilities, with a total product capacity of approximately 250,000 t/y. The site also offers opportunity for future development and expansion at the Specialties Hub, said Dow.

“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, urbanisation 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 customised innovation, and better positions customers for success in markets including automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants and adhesives.

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. Advantages include a deep-water port, transportation networks, and a world-class chemical park with advanced infrastructure and services. The strategic location enables the company to cover demand across Asia Pacific, said Dow.