Industry News

Signing a Letter of Intent with Zhangjiagang Free Trade Zone

Published on 2006-05-31. Author : SpecialChem

The Dow Chemical Company, a world leader in the chemical industry, signed a Letter of Intent (LOI) with the Administrative Committee of Zhangjiagang Free Trade Zone in Jiangsu Province and expressed its intention to significantly step up investment in China.

Located on the Yangtze River approximately 200 kilometers (125 miles) upstream from Shanghai, Zhangjiagang is uniquely positioned to supply domestic customers as well as export markets. The LOI covers products in three downstream Performance businesses of Dow - DOWANOL™ PM glycol ethers in Specialty Chemicals, styrene butadience latex in Dow Latex, and STYROFOAM™ brand insulation in Dow Building Solutions.

Dow currently operates three world-scale, state-of-the-art facilities in the Yangtze River International Chemical Park in Zhangjiagang Free Trade Zone: a converted epoxy resin plant, a styrene butadiene latex facility, as well as a polystyrene resin plant. Total investment so far is about US$300 million. The facilities under the LOI would bring an additional US$200 million investment to this strategic site in China.

"We welcome Dow, our long term partner, to look into further investment in Zhangjiagang," said Wang Xiang, Mayor of Zhangjiagang, Jiangsu Province. "We have been working closely with Dow in the region for nearly 10 years. The experience has been good and our partnership solid and successful. We look forward to further strengthening this partnership and, based on the principles of sustainable development, bringing more growth and added value to the Zhangjiagang community."

Jim McIlvenny, President of Dow Asia Pacific, said, "This LOI again underscores Dow's commitment to investing in emerging geographies, in particular China which is a key component of Dow's global business strategy and a significant contributor to our growth and development. As we look into expanding our downstream Performance businesses in China, we will continue to explore upstream and other investment opportunities and collaborate with partners to strengthen our leadership position."

With its excellent location, efficient infrastructure and a forward-looking leadership, Zhangjiagang is an ideal base to expand our production capacity in China," added Frankie Ko, Vice President of Business Development, Dow Greater China. "We intend to step up our investments in China so as to better meet the growing demand and needs of our customers in the downstream market."

China is Dow's third largest market behind the US and Germany in terms of sales. In 2005, Dow Greater China's revenue was US$ 2.3 billion.

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. 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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