ZHANGJIAGANG, China—Dow Inc. is investing $300 million in China throughout the next five years to expand capacity for differentiated silicones products.
The company, on March 23, signed a memorandum of understanding with the Zhangjiagang Free Trade Zone to expand its manufacturing site in the region, the company said in a statement.
The investment will see Dow further developing its silicone intermediates and downstream portfolio, ranging from silicone fluids to adhesives and sealants.
The move comes in response to customer demand for "sustainable and differentiated" silicone products throughout the China and the Asia-Pacific region, Mauro Gregorio, president of Dow Performance Materials & Coatings, said in a statement.
The "low-risk, high-return investment" aims to support customers in industries such as mobility and transportation, building and infrastructure, electronics, and home and personal care, Gregorio added.
Meanwhile, Dow said it intended to share manufacturing best practices with local authorities to improve overall safety and environmental performance in the free trade zone.
"The MoU we are signing today is a testament to our long-standing commitment to growing alongside the city of Zhangjiagang and our partners in China," said Yoke Loon Lim, president of Dow Greater China.