Dow 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 Dow’s portfolio of high value products and innovative technologies.

“Asia Pacific is the world’s largest chemicals market,” 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.”

Dow signs MoU to establish South China Specialties Hub.

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 US$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, stated, “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.”

“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,” added Liang Pei, party secretary of the Zhanjiang EDZ.

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.