SHANGHAI - The Dow Chemical Company will invest in medium and small-scale facilities in China over the next four to five years, said Andrew N. Liveris, chairman and chief executive officer of the company.
He added that the company will also continue to monitor progress at its large coal-to-chemical project at Yulin, Shaanxi province.
Dow and its partner China Shenhua Group on Nov 2 announced to submit a project application report to the Chinese government for approval, according to the US company.
Once on-stream, the project will be one of the world's largest integrated sites using coal to produce chemicals.
Meanwhile, Dow will build a coating plant in Chengdu, Sichuan province, and a facility to produce electronic materials in Zhangjiagang in Jiangsu province.
The US-based company is focusing on increasing its research and development (R&D) portfolio in China, said Liveris, who added "Asia-Pacific is a hub for our innovation."
With around 1,700 employees, the R&D center in Shanghai has become Dow's largest facility of its kind outside the United States.
China is now Dow Chemical's second-largest market, lagging behind the US, but the country has the potential to equal the US market within the next five years, said Liveris.
"We have a very good business mix in China," he said. At present, 90 percent of the company's portfolio in China is in specialty chemicals, and 10 percent in basic chemicals.
The rapid expansion of energy-efficient, environmentally-friendly industries is also providing Dow with great growth opportunities, said Liveris, and the company is taking a particular interest in China's fast-growing wind and solar energy industries.
US companies still want to do businessOne important move is to use its global R&D capabilities to help more domestic companies make the transition into overseas markets.
The Chinese government said earlier that more efforts are needed to develop emerging industries of strategic importance.
A statement was issued following an executive meeting of the State Council in September. It pinpointed several industries as priority cases, including New Energy and New Materials.
The central government will pilot the development of these industries by formulating industrial standards and creating a sound market environment.
Analysts said more international cooperation is expected in these sectors.
