The group did not disclose a timescale for establishing the hub, which will be located at Donghai Island in Zhanjiang, on the farthest southern tip of mainland China, and will benefit from a deep-water port, transportation networks and a chemical park with advanced infrastructure and services. Dow said the facility's strategic location will enable the company to cover demand across Asia-Pacific, further positioning it to capture growth in the world’s largest chemicals market.

Under the MoU, Dow will invest roughly $250 million to build specialty polyurethanes and alkoxylates facilities, with a total capacity of approximately 250,000 t/y. The hub's site also offers future development and expansion opportunities.  

The US materials science group said the manufacturing hub will extend its local reach, further enhancing supply reliability, responsiveness to market needs and customized innovation, as well as better positioning customers for success in markets including automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants and adhesives. 

“Asia Pacific is the world’s largest chemicals market. Demands in the region are evolving towards high-value, specialty chemicals that help customers meet rapidly-developing megatrends in mobility, urbanization and sustainability,” 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.”

Henry Ling, vice president of operations, Dow Asia Pacific, added that the hub will employ advanced digital, intelligence and automation technologies.

The company is currently building a silicone plant in Zhangjiagang, eastern China, which is due to go on stream this year. Capacity figures were not given, but Dow said output would meet increased demand for high-value, specialty silicone products in key industries and emerging markets.

Applications for these specialty silicones are found in home and personal care, pressure sensitive adhesives, antifoams, moldable optics for lighting and specialty chemicals.

Author: Elaine Burridge, Freelance Journalist