Dow Chemical Accelerates Business Development in China and Signed a Memorandum of Cooperation for the Tianjin Logistics Center Project with Longxiang Group
Sohu Finance News Dow Chemical Company (NYSE ticker: DOW) and Longxiang Group Holdings Limited (Hong Kong Stock Exchange ticker: 935), one of China's large comprehensive chemical logistics service providers, recently signed a memorandum of cooperation in Tianjin. The two parties plan to jointly build the Dow Chemical Tianjin Logistics Center in Nangang Industrial Zone, Binhai New Area, Tianjin. The planned investment of this project is 200 million US dollars. It will become Dow's first major chemical logistics center in China, and also the largest chemical logistics center of Dow globally. This project will function as a strategic logistics center, and strongly support the sustained and strong business growth of Dow in Greater China and North Asia.
Peter Sykes, President of Dow Chemical Greater China, said: "Dow Chemical is increasing its investment in China, strengthening localized production and supply chain network, and accelerating our development in China. The Tianjin Logistics Center will play a strategic role, enabling us to better meet the needs of the local market. As a critical logistics center, this project will ensure that we can quickly deliver chemical raw materials and finished products from abroad to corresponding regions in Greater China."
According to introduction, the Tianjin Logistics Center project covers an area of 50 hectares, with direct access to deep-water areas and railway systems, and its annual cargo throughput can reach 6 million to 9 million tons. When fully completed and put into use, the center will employ more than 300 skilled technicians. The Tianjin Logistics Center will also adopt advanced design and high industry standards to ensure the safety and environmental friendliness of its daily operations.
Dow Chemical and Longxiang Group will submit the project application in the second half of this year for government approval. The first phase of the project is expected to be put into operation in 2016. At the same time, the project reserves land for expansion, which can be expanded into Dow's future logistics center along the eastern coast to support the company's future investment and development in China.
At present, Dow is vigorously strengthening its supply chain system in China. In April this year, in cooperation with Tata Consultancy Services, Dow opened a business service center in Tianjin to further improve its excellent business operation capability and better serve Dow's customers in China, various business departments of Dow and joint ventures.
It is understood that Dow's sales in Greater China hit a new high in 2010, exceeding 4 billion US dollars, and is expected to continue to maintain double-digit growth in the next few years. Currently, Greater China is Dow's second largest international market globally. Dow has 18 production bases and 6 business centers here.
About Dow
Dow is a diversified chemical company that uses science, technology and the power of the "human element" to continuously improve the basic elements that drive human progress. The company integrates the principle of sustainability into chemistry and innovation, and is committed to addressing many challenges facing the world today, such as meeting the demand for clean water, realizing the production and conservation of renewable energy, and increasing crop yield. With its leading specialty chemicals, advanced materials, agricultural science and plastics businesses, Dow provides a wide range of products and services for customers in approximately 160 countries and regions around the world, which are used in fast-growing markets such as electronic products, water treatment, energy, coatings and agriculture. In 2010, Dow's annual sales reached 53.7 billion US dollars. The company has approximately 50,000 employees worldwide, operates 188 factories in 35 countries, and offers more than 5,000 kinds of products. Unless otherwise noted, "Dow" or "the Company" refers to Dow Chemical Company and its subsidiaries.
About Longxiang Group
Longxiang Group (Hong Kong Stock Exchange ticker: 935), founded in 1990, is one of China's large comprehensive chemical logistics terminal service providers. Longxiang Group provides comprehensive liquid chemical terminal and storage services. It currently operates 3 terminals in Nanjing, Tianjin and Ningbo respectively, and provides comprehensive and meticulous services for the delivery of high-quality liquid chemicals, including loading and unloading liquid chemicals at the group's own terminals, storing liquid chemicals in the group's own tank farms, and delivering related products through special pipelines and other terminal infrastructure.