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Dow Epoxy to Invest US$200 Million to Accelerate Growth in China


Construction of new plants, capacity expansion and new Global Application Development Center support epoxy market growth in China

Hong Kong - August 09, 2006, Dow Epoxy, a business unit of The Dow Chemical Company (“Dow”), today announced plans to invest more than US$200 million over the next five years in manufacturing and R&D facilities in China. Dow Epoxy is a leading global supplier of epoxy resins and related feedstock products with 10 manufacturing facilities worldwide, including plants in Zhangjiagang, Jiangsu Province, China; Gumi, Korea; and Kinu Ura, Japan.

To support continued growth in China and the broader Asian region, Dow Epoxy plans to build a 100,000 MTPA world-scale liquid epoxy resins (LER) plant at its existing site in Zhangjiagang, and a 150,000 MTPA epichlorohydrin (ECH) plant in a soon-to-be-announced site also in China. Both units are expected to start up in the 2009-2010 timeframe. At the same time, Dow Epoxy plans to expand the capacity of its converted epoxy resins (CER) plant in Zhangjiagang from its current 41,000 MTPA to 75,000 MTPA. In another related move, Dow Epoxy will also establish a Global Application Development Center in China, further strengthening customer support in China and across the region.

“China is the world’s fastest growing market for epoxy products and, together with other Asian markets, plays an important role for Dow and our customers. The new investments demonstrate our confidence and commitment to the China market and to our customers,” says Patrick Ho, business vice president, Dow Epoxy. “Dow Epoxy is a leading supplier in China and the Asia Pacific region, building on our global supply network and market-focused R&D capabilities. Our investments in ECH and LER production in China would give us in-market supply capabilities and the advantage of a fully-integrated operation which would put us in a uniquely competitive position to accelerate our growth and the growth of our customers.”

New Epichlorohydrin Plant Based on Dow’s Breakthrough Technology

Dow Epoxy is one of the largest ECH suppliers in the world. The new 150,000 MTPA world-scale ECH plant in China, which is expected to start up in 2010, would be the first to use a new Dow proprietary glycerine-to-epichlorohydrin technology. Glycerine is a bio-renewable product generated during bio-diesel production. The use of glycerine as the primary feedstock in Dow’s ECH manufacturing represents a major technology breakthrough, providing significant cost and environmental advantages versus the conventional process technologies.

First World-Scale Liquid Epoxy Resins Plant in Zhangjiagang , China

Dow Epoxy’s plans to build the first LER plant in China underscores the business’s commitment to support rapid increases in market demand in China. The new 100,000 MTPA LER plant, based on state-of-the-art technology, would be located in the Yangtze River International Chemical Park in Zhangjiagang. Part of Dow’s global LER supply network, which includes facilities in the U.S., Germany, Italy, Brazil, and Japan, this new LER plant in China is expected to start up in 2009.

Converted Epoxy Resins Capacity Expansion

Started up in 2003, the CER plant in Zhangjiagang has been supplying epoxy resins to high value, downstream industries including electronics, marine, automotive and appliances. The planned capacity expansion would add 34,000 MTPA in 2008, further strengthening Dow Epoxy’s ability to meet growing customer needs in China.

Global Application Development Center Supports Local Market Growth

To help accelerate its application development and technical support capabilities in the region, Dow Epoxy will locate its Global Application Development Center in China, leveraging Dow’s state-of-the-art Research and Development Center in Shanghai. The new Application Development Center will deliver innovative, timely and effective solutions to support customers primarily in the electrical laminates and coatings markets. Scheduled to begin activities in the first quarter of 2007, the center has been designed to meet the increasing demand for the Dow Epoxy products and technologies in China and the broader region, and will serve as a base for ongoing product research and development.

Leadership for the Future

Dow Epoxy is committed to establishing leading supply and customer support positions in all regions in its core markets of coatings, electrical laminates and civil engineering, which continue to record strong demand growth for high quality epoxy products in China. “As one of the world’s leading suppliers of epoxy resins, we continue our disciplined approach to being the most reliable, technology-focused supplier of choice in all regions, supporting customers in their growth and innovation,” says Ho. “We will continue to take advantage of growth opportunities and, most importantly, to sustain our leadership well into the future.”

About Dow Epoxy

Dow Epoxy is one of the world’s largest producers of epoxy resins and intermediates, with strong positions in a number of major applications including coatings, electrical laminates and civil engineering. Three of the company’s 10 epoxy plants are in the Asia Pacific region, including a 41,000 MTPA facility in Zhangjiagang, China; a 40,000 MTPA facility in Kinu Ura, Japan; and a 30,000 MTPA facility in Gumi, Korea. Dow Epoxy is also the global market leader in epichlorohydrin, with more than one-third of global capacity share and manufacturing facilities in all major regions. More information about Dow Epoxy is available at and

About The Dow Chemical Company

Dow is a diversified chemical company that harnesses the power of science and technology to constantly improve what is essential to human progress. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

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