Dow Chemical, Dragon Crown sign MOU for Tianjin Terminal Project
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Xinhua, July 9, 2011
The Dow Chemical Company signed a Memorandum of Understanding (MOU) with chemical storage service provider Dragon Crown Group on Friday for the establishment of a logistics and storage center in east China's municipality of Tianjin.
The Tianjin Terminal Project will cover a total area of 50 hectares, with an initial planned investment of 200 million U.S. dollars, according to the MOU. It will have the capacity to handle 6-9 million metric tons of throughput annually, the MOU said.
Peter Sykes, president of Dow Greater China, said the project will be Dow's first chemical storage facility in China, as well as Dow's largest global storage facility.
It will serve as a strategic distribution hub to support Dow's continued growth in China and northern Asia, he said.
"By investing in our local manufacturing and supply chain, we are committed to accelerating our growth in China. The Tianjin Terminal Project will play a strategic role in better serving local market needs," said Sykes.
Dow and the Dragon Crown Group will jointly submit a project application report for government approval later this year, he said, adding that the first phase of the facility is expected to begin operations by 2016.
Dow's sales in China hit 4 billion U.S. dollars in 2010, and the company expects to maintain double-digit growth in the years to come, Sykes said.
Greater China is currently Dow's second-largest international market, where it operates 18 manufacturing sites and six business centers.
