Dow recently announced that it 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. The multi-year project will reportedly provide customers local access to Dow’s portfolio of products and technologies.

"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."

The new manufacturing hub would extend Dow's local reach, further enhancing supply reliability, responsiveness to market needs and customized innovation. In addition, Dow reports that the hub better positions customers for success in markets including automotive, pharmaceuticals, cleaning chemicals, apparel, lubricants, and adhesives.

Under the MOU, Dow would invest approximately $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.

"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," said Henry Ling, vice president of operations, Dow Asia Pacific. "The new hub will adopt and employ advanced digital, intelligence and automation technologies to create a manufacturing space of world-class safety, productivity, reliability and sustainability performance."

"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," said Liang Pei, party secretary of the Zhanjiang EDZ. "We are committed to turning our petrochemical park at the Donghai Island into a world-class one, providing a modern infrastructure and necessary supportive policies to Dow and the park's other companies."

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