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Dow Epoxy and Shanghai Tian Yuan Huasheng Sign Long Term Raw Materials Supply Agreements for Two Proposed Plants in Shanghai

Published on 2008-10-20. Author : SpecialChem

Dow Epoxy, a business unit of The Dow Chemical Company ("Dow"), has signed long term raw materials supply agreements with Shanghai Tian Yuan Huasheng Chemical Co., Ltd. (TYHSC) for its planned 100,000 MTPA liquid epoxy resin (LER) plant in 2010 and 150,000 MTPA glycerine-to-epichlorohydrin (GTE) plant in 2011 at Shanghai Chemical Industry Park (SCIP).

TYHSC will provide caustic soda and anhydrous HCL for the LER and GTE plants at SCIP and receive recycled brine from Dow for chlor-alkali production. The total contract value over 10 years is in excess of US$400 million. TYHSC, a wholly-owned subsidiary of Shanghai Chlor-Alkali Chemical Co., Ltd. (SCAC), is the newly-built production base of SCAC at SCIP.

The cooperation between TYHSC and Dow fully embodies the advantage of advanced production processes and supports the government's efforts in building a "circular economy" whereby use of resources is being maximized and recycled as much as possible. The fact that TYHSC and Dow will be providing raw materials to each other supports that drive and also enables the two companies to benefit from site integration at SCIP as well.

Li Jun, General Manager of SCAC, said,"We are most grateful for the confidence and trust that Dow Epoxy has placed upon us. We'll be working closely with the Dow Project team to carry out mutual support and common development, so as to ensure the stable, secure supply of raw materials to the new plant. We are fully convinced that TYHSC and Dow will become good and long-term partners."

"A stable and trusted supplier is critical to the success of the LER and GTE plants and we're pleased to have entered into a contractual relationship with such a strong partner as TYHSC," said Noelle Walsh, global business director, Liquid Resins & Intermediates, Dow Epoxy. "We have made tremendous progress since we announced the site location at SCIP last year. The projects are moving full steam ahead and we expect to break ground in the first quarter of next year. The two new plants are well on track to come on stream in 2010 and 2011 respectively."

Last month, Dow Epoxy announced that its LER and GTE projects had received approvals for their environmental impact assessments (EIAs) from the Chinese Ministry of Environmental Protection.

"With the long term agreement with TYHSC, I'm delighted to see that we've reached another significant milestone for the two new projects," said Patrick Ho, Business Group President, Epoxy & Specialty Chemicals, The Dow Chemical Company. "The worldclass LER and GTE plants in Shanghai will further strengthen our ability to meet growing customer needs in China, particularly in the core markets of coatings, electrical laminates and civil engineering. These plants will put us in a unique competitive position characterized by innovation, stability and reliability."

"With our proprietary GTE technology, we will cut chlorine consumption in half and produce 10 times less waste water, while also improving process efficiency and product quality," added Walsh. "This technology is a prime example of Dow's commitment to significantly reduce and conserve energy as part of its 2015 Sustainability Goals."

Dow's proprietary GTE technology is distinct from and an alternative to any GTE technology practiced today. Dow is actively pursuing patent protection on its developed GTE technology and will continue to file numerous patent applications to ensure a strong intellectual property position.

The cooperation between TYHSC and Dow also shows that SCAC will further implement the strategy of Shanghai Huayi (Group) Company which is firmly taking SCIP as its main base for future development. By consolidating its most competitive position in chlorine supply at SCIP, TYHSC will gain long-term and stable sales revenue and space for future development.

About Shanghai Chlor-Alkali Chemical Co., Ltd.

Shanghai Chlor-Alkali Chemical Co., Ltd. (SCAC), one of the biggest chlor-alkali producers and suppliers in China, mainly produces four series of caustic soda, chlorine, plastics and fine chemicals. Its main products, the Shen Feng brand caustic soda, SPVC and PPVC, are awarded as Chinese Famous Brand Products and are sold to more than 40 countries in five continents. As its comprehensive strength and capability ranks among the top of china chlor-alkali industry, SCAC is listed on Top 500 Enterprises in China Manufacturing Industry with the operating income of 5.1 billion RMB in 2007. SCAC, the Best Image Enterprise of Shanghai, vigorously takes "Self-urging, Striving for the Top-rank" as its spirit and "Rejuvenating China and Developing with China" as its core value.

In new era, SCAC, taking Shanghai Chemical Industry Park (SCIP) as its main base, spares no effort to promote a new round of development. Shanghai Tianyuan Huasheng Chemical Co., Ltd. (TYHSC), a wholly-owned subsidiary of SCAC, has gradually been the most competitive chlorine supplier at SCIP. As an important part of product chain at SCIP, TYHSC formed the cooperative partnership with leading international chemical companies. SCAC will continue to strengthen foreign cooperation and exchange, and aspire to work with new partners at SCIP for a bright future.

About Dow Epoxy and Dow Epoxy Systems

Dow Epoxy is one of the world's largest epoxy resins and intermediates manufacturers, with strong positions in a number of major application areas, including coatings, electrical laminates and civil engineering. Dow Epoxy, through a new business unit known as Dow Epoxy Systems, also serves as a formulator for users of specialty epoxy systems in many industries, including civil engineering and infrastructure, composites, wind energy and others.

About Dow

With annual sales of $54 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the " Human Element " to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Source: Dow


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