Dow Epoxy, a unit of United States chemical giant Dow Chemical Co, signed a deal with Shanghai Tianyuan Huasheng Chemical Co yesterday to supply key raw materials for its planned new plants.

The local firm, a unit of state-owned Shanghai Huayi (Group) Co, will provide caustic soda and anhydrous hydrogen chloride for Dow's 100,000-ton-a-year liquid epoxy resins plant and 150,000-ton-a-year glycerine-to-epichlorohydrin plant. It will also receive recycled brine from Dow for chlor-alkali production.

The total value of the 10-year contract is more than US$400 million. The deal underscores the government effort in building a circular economy by maximizing the use of resources and recycling, the companies said.

The two Dow plants, to cost US$420 million, are set to come on line in 2010 and 2011 at the Shanghai Chemical Industry Park, said Patrick Ho, business group president for Dow Epoxy & Specialty Chemicals. They will offer coatings, electrical laminates and civil engineering.

(Shanghai Daily October 16, 2008)