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.