ZHANJIANG, Guandong—Dow Chemical plans to build a South China Specialties Hub with polyurethane chemistry at its heart.
The $250 million expansion would add 250,000 metric tons per year of polyurethanes and alkoxylate capacity at the site, which is located at Dongai Island, the southernmost tip of mainland China. The site offers opportunity for future development and expansion, Dow said.
In addition to being a chemical park, it will provide a deep-water port and good access to transport, Dow said. The location will allow Dow to cover demand from across Asia.
"Asia Pacific is the world's largest chemicals market," Dow Pacific President Jon Penrice said in a statement. "Demands in the region are evolving toward high-value, specialty chemicals. 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, the vice president of operations for Dow Asia Pacific, said the hub will be built to Dow's "world-class environmental, health and safety standards," which are aligned with the company's commitment to being carbon neutral by 2050.
"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," Ling said.