Dow signs MoU to establish South China Specialties Hub

Rhea-AI Summary

Dow (NYSE: DOW) has signed a Memorandum of Understanding with the Zhanjiang Economic and Technological Development Zone to develop the Dow South China Specialties Hub. This multi-year project, with an investment of approximately $250 million, will produce specialty polyurethanes and alkoxylates, enhancing local supply reliability and catering to the evolving demand for high-value chemicals in the Asia Pacific region. The facility aims for a total product capacity of around 250,000 tons while aligning with Dow's commitment to sustainability and advanced manufacturing technologies.

Positive

• Investment of approximately $250 million in the South China Specialties Hub.
• Total product capacity planned at 250,000 tons.
• Enhanced supply reliability and responsiveness to customer needs.
• Commitment to sustainability and net carbon neutrality by 2050.

Negative

• None.

Dow (NYSE: DOW) today 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.

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210304005518/en/

FAQ

What is the Dow South China Specialties Hub?

The Dow South China Specialties Hub is a manufacturing facility being developed by Dow in Zhanjiang, aimed at producing specialty polyurethanes and alkoxylates to meet the growing demands for high-value chemicals.

How much is Dow investing in the Zhanjiang facility?

Dow is investing approximately $250 million in the construction of the South China Specialties Hub.

What is the production capacity of the new Dow facility?

The new Dow facility is planned to have a total product capacity of around 250,000 tons.

When is the Dow South China Specialties Hub expected to be completed?

The timeline for the completion of the Dow South China Specialties Hub has not been specified in the press release.

What strategic advantages does the Dow facility have?

The Dow facility will benefit from a deep-water port, transportation networks, and a world-class chemical park with advanced infrastructure and services.