Dow unveils plans to establish south China ‘specialities hub’

Zhanjiang, China – Dow Inc. is planning to invest $250 million (€209 million) to construct a speciality polyurethanes and alkoxylates facilities in southeastern China, as part of a move to build a local ‘specialities hub’ in the region.

The site will have a total production capacity of 250 kilotonnes per annum (ktpa) with room for future development and expansion, said Dow in a 4 March statement. 

The facility is part of a memorandum of understanding (MoU) signed between Dow and the Zhanjiang Economic and Technological Development Zone on 4 March to build the a south China specialities hub.

The multi-year project, according to the statement, provides local access to Dow's portfolio of 'high value products and innnovative technologies'.

“Asia Pacific is the world’s largest chemicals market,” said Jon Penrice, Dow Asia Pacific president. 

Demands in the region, he went on to say, are evolving towards high-value, speciality chemicals to meet megatrends in mobility, urbanisation and sustainability.

“The establishment of the Dow South China specialities 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,” he added.

According to the US chemicals supplier, the products offered by the hub will "better position" customers for markets such as automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants and adhesives.

The new location will adopt and employ “advanced digital, intelligence and automation technologies” to and will have “world-class safety, productivity, reliability and sustainability performance,” said Henry Ling, VP operations, Dow Asia Pacific.

Dow intends to build the hub at Donghai Island in Zhanjiang, the farthest southern tip of mainland China. 

The location will offer advantages such as a deep-water port, transportation networks, and advanced infrastructure and services, according to Dow.