Dow chemical to do more in Asia
Dow chemical to do more in Asia
SINGAPORE (AFP): U.S. giant Dow Chemical Co. announced
yesterday expansion plans in Thailand, China, Singapore and
India and forecast Asia-Pacific turnover to more than double to
US$6 billion in 2005.
"Our plans include potential integrated petrochemical sites in
the Association of Southeast Asian Nations or ASEAN and China to
support rapidly growing downstream products," company President
William Stavropoulos told reporters here.
Dow's sales in the Asia-Pacific, totaling 2.6 billion dollars
last year, represent more than 10 percent of the company's global
turnover.
Stavropoulos disclosed that Dow had entered into a 50:50
agreement with its established Thai partner, Siam Cement, to
build the U.S. company's first polyethylene production facility
in Asia.
Dow is the world's largest producer of polyethylene, a
petroleum-based chemical used for making, among other things,
plastic bags, films and carpet backings.
The "world scale" facility, to be built in Thailand's Map-Tu-
Phut industrial complex, would cost $120 million and would have a
capacity of 300,000 tons per year.
It will be the first facility of its kind in the region and is
scheduled to come on stream in 1999.
"This investment is a key, strategic step for the global
polyethylene business of Dow plastics and demonstrates our strong
commitment to be a key supplier to customers through ASEAN,"
Stavropoulos said.
Apart from Thailand, ASEAN comprises Brunei, Indonesia,
Malaysia, the Philippines, Singapore and Vietnam.
Dow's current Southeast Asian investments include other joint
ventures with Siam Cement and Indonesia's Salim Group.
Stavropoulos said Dow was investigating the viability of
building a polyethylene derivatives complex in either Thailand,
Indonesia or Singapore to support growth.
The company is also expanding its office in Singapore to
create a business and administrative center for regional
activities in Asia -- Dow's fourth in the Asia-Pacific after Hong
Kong, Tokyo and Sydney.
In China, Stavropoulos said Dow was looking into developing an
integrated petrochemical complex in the Tainjin area. The initial
project scope includes a 600,000 ton naptha cracker and major
derivative plants.
"We are in active negotiations with Sinopec, the leading
petrochemical company in China, as a potential partner. We expect
to finalize a letter of intent during the first half of 1997," he
said.
Dow had already signed a letter of intent with another Chinese
firm, Yangzi Petrochemical Company, to build a plant producing
polyester in Nanjing.
Polyester is used for making fashion products, plastic soft
drink bottles, video tapes and x-ray films. The company is also
setting up a factory producing another chemical product,
polystyrene, in China.