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Dow to Increase Capacity of Silicones Plant

March 27, 2020
Dow is looking to expand production of silicone intermediates and finished products at a manufacturing facility in China. Image courtesy of Dow
Dow is looking to expand production of silicone intermediates and finished products at a manufacturing facility in China. Image courtesy of Dow

American chemicals firm Dow signed a Memorandum of Understanding (MoU) on March 23 to collaborate with the Zhangjiagang Free Trade Zone in China’s Jiangsu province on an expansion of Dow’s silicone intermediates and finished products manufacturing plant. The company plans to boost the site’s capacity to meet growing demand. Over the next five years, Dow will possibly invest $300 million to expand the site. 

“Due to megatrends such as globalization, urbanization, and a growing focus on sustainable development, customers across industries are seeking more innovative, sustainable, and differentiated silicone products – especially customers in China and the Asia Pacific region,” Dow Performance Materials & Coatings President Mauro Gregorio said in a company release. “With the low-risk, high-return investment plan for the next five years outlined in the agreement, we are well positioned to help customers grow and succeed by addressing their fast-growing needs across a wide range of key industries, such as mobility and transportation, building and infrastructure, electronics, and home and personal care.”

The expansion will enable Dow to grow its intermediates and downstream portfolio, including silicone fluids and sealants. As part of the deal, the Zhangjiagang Free Trade Zone will support the project through infrastructure and services. In turn, Dow said it plans to share manufacturing best practices with officials to bolster the Free Trade Zone’s safety and environmental performance.

“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,” Yoke Loon Lim, president of Dow Greater China, said in a statement. “We view China as a rapidly growing market and the planned investments reflect our confidence in this view. The MoU will enhance Dow’s ability to provide innovative materials science solutions to customers in China and across the broader Asia-Pacific.”

Earlier this week, Powder & Bulk Solids reported that Dow is altering its production processes to facilitate the production of hand sanitizer at a US facility and a plant in Stade, Germany in response to the COVID-19 pandemic. 

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