Dow Chemical, together with Longxiang Group, is building a logistics center in Tianjin
Dow Chemical accelerated its business development in China and signed a memorandum of cooperation with Longxiang Group on the Tianjin Logistics Center project
Sohu Finance News Dow Chemical (NYSE code: DOW) and Longxiang Group Holdings Limited (HKSE code: 935), one of China's largest comprehensive chemical logistics service providers, recently signed a memorandum of cooperation in Tianjin to jointly build Dow Chemical Tianjin Logistics Center in Nangang Industrial Zone, Binhai New Area, Tianjin. The project, with a planned investment of US $200 million, will become Dow's first chemical logistics center in China and the largest chemical logistics center in the world. The project will play the role of a strategic logistics center and strongly support Dow's sustained and strong business growth in Greater China and North Asia.
Shi Botao, president of Dow Chemical in Greater China, said: "Dow Chemical is increasing its investment in China, strengthening the local production and supply chain network, and accelerating our development in China. The Tianjin Logistics Center will play a strategic role in enabling us to better meet the needs of the local market. As a vital logistics center, the project will ensure that we can quickly and efficiently transport the raw materials and finished products of chemicals from abroad to the corresponding regions of Greater China."
It is reported that the Tianjin Logistics Center project covers an area of 50 hectares and can directly connect to the deepwater area and the railway system. The annual cargo throughput can reach 6 million to 9 million tons. When completed and put into use, the center will employ more than 300 skilled technicians. Tianjin Logistics Center will also adopt advanced design and the highest industry standards to ensure the safety and environmental protection of its daily operation.
Dow Chemical and Longxiang Group will submit project applications to the government for approval in the second half of this year. The first phase of the project is expected to be put into operation in 2016. At the same time, the project also has land space for expansion, which can be expanded into Dow's future logistics center in 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, Dow cooperated with Tata Information Technology Co., Ltd. to open a business service center in Tianjin to further improve its excellent business operation capability and better serve Dow's customers in China, Dow's business departments and joint ventures.
It is understood that Dow's sales in Greater China reached a new high in 2010, exceeding US $4 billion, and is expected to maintain double-digit growth in the next few years. At present, Greater China is Dow's second largest international market in the world. Dow has 18 production bases and 6 business centers here.
About Dow
Dow is a diversified chemical company, which uses the power of science, technology and "human element" to continuously improve the basic elements to promote human progress. The company applies the principle of sustainability to chemistry and innovation, and is committed to solving many challenges facing the world today, such as meeting the demand for clean water, realizing the production and conservation of renewable energy, and improving crop yields. With its leading businesses in special chemistry, high-tech materials, agricultural science and plastics, Dow provides a wide range of products and services to customers in about 160 countries and regions around the world, which are applied to the rapidly developing markets such as electronic products, water treatment, energy, coatings and agriculture. In 2010, Dow's annual sales amounted to 53.7 billion US dollars, with about 50000 employees worldwide, 188 factories in 35 countries and more than 5000 products. Unless otherwise specified, "Dow" or "Company" refers to Dow Chemical Company and its subsidiaries.
About Longxiang Group
Longxiang Group (Hong Kong Stock Exchange Code: 935), founded in 1990, is one of the largest comprehensive chemical logistics terminal service providers in China. Longxiang Group provides comprehensive liquid chemical terminals and storage services. At present, it operates three terminals in Nanjing, Tianjin and Ningbo respectively, and provides comprehensive and detailed services for the delivery of high-quality liquid chemicals, including loading and unloading of liquid chemicals at its own terminals, storage of liquid chemicals in its own tank farms, and delivery of related products using special pipelines and other terminal infrastructure.
