Dow to invest about 1.6 billion yuan in Guangdong, the new South China specialty chemicals manufacturing base

On March 4, Dow Chemical (China) Investment Co., Ltd. and Zhanjiang Economic and Technological Development Zone Management Committee signed a memorandum of understanding, plans to set up Dow's South China specialty chemicals manufacturing base. According to the MOU, Dow will invest about $250 million (about RMB 1.623 billion) in the construction of specialty polyurethane and specialty surfactant plants, with a total capacity of about 250,000 tons. Dow's South China specialty chemical manufacturing base will be located in Zhanjiang City, Guangdong Province, Donghai Island.

"The Asia-Pacific region is the world's largest market for chemicals. Demand in the region is moving toward high-value specialty chemicals that will help customers meet rapidly evolving megatrends in transportation, urbanization and sustainable development." Jon Penrice, president of Dow Asia Pacific, said, "The establishment of Dow's South China Specialty Chemicals manufacturing site will further position Dow to continue to grow with our customers in China and throughout the region by providing industry-leading materials science solutions."

The new manufacturing center will expand Dow's local footprint, further improve supply reliability, responsiveness to market needs and custom innovation, and better position customers for success in markets such as automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants and adhesives.

In keeping with Dow's focus on low capital-intensive, quick payback and high-return growth projects, the company will invest approximately $250 million in a specialty polyurethane and alkoxylate facility with a total product capacity of approximately 250,000 metric tons, according to the MOU. The site also provides opportunities for future growth and expansion of the Specialties Hub.

The South China Specialties manufacturing site will be built to Dow's world-class environmental, health and safety standards and is consistent with Dow's recent commitment to become carbon neutral by 2050," said Henry Ling, vice president of operations for Dow Asia Pacific. The hub will employ advanced digital, intelligent, and automated technologies to create a world-class manufacturing site that is safe, efficient, reliable, and environmentally sustainable."

The South China Specialty Chemicals Manufacturing Base will be located on Zhanjiang Donghai Island, the southernmost point of mainland China. Unique advantages include a deep-water port, transportation network and a world-class chemical park with advanced infrastructure and services. The location allows Dow to meet the needs of the Asia-Pacific region.