Dow Chemical 2010 Annual Report Download - page 23

GEOGRAPHIC PRESENCE – CHINA
Elevating Competitiveness through Mega Projects
Our investments in mega projects are a cornerstone of our
geographic growth strategy. These projects provide capacity
for the building blocks needed to support the continued growth
of our Performance and market-driven businesses – and our
customers’ growth.
Our mega projects follow an equity-light model, in which we
share the assets and costs with a regional partner. This allows us
to maintain our integration and our size, while freeing up capital
for investments in our Performance and Advanced Materials
businesses. In 2010, we continued to make significant progress
with several mega projects:
•฀฀We฀entered฀into฀the฀final฀stages฀of฀the฀front-end฀engineering฀
and design study of a proposed joint venture project with
Saudi Aramco. Dow and Saudi Aramco are working to build
a world-scale integrated chemicals complex in Jubail, Saudi
Arabia. The complex will provide access to advantaged
feedstock and increase capacity for our
Performance businesses.
•฀฀In฀Thailand,฀we฀invested฀in฀expanding฀and฀growing฀
our Performance businesses in Asia Pacific through
our joint ventures with The Siam Cement Group.
The site is fully integrated with feedstock supply
from a nearby cracker, and in 2010, we launched
our Solution Linear Low Density Polyethylene II train.
World-scale Specialty Elastomers and HPPO plants
are also under construction, and we have announced
plans to build a propylene glycol facility as well.
•฀฀In฀China,฀Dow฀and฀the฀Shenhua฀Group฀are฀completing฀
a feasibility study to build and operate a world-scale
integrated complex in Yulin City. This project recently
reached a key milestone when the partnership submitted the
formal Project Application Report to the Chinese government.
Winning Locally
Ultimately, we will grow our geographic presence through strong
local relationships, strong local knowledge and strong local talent.
To reach our growth objectives, Dow has implemented a new
geographic operating model that places senior executives in
critical strategic leadership roles at the local level. We have
also introduced the Geographic Leadership Council, which
plays an active role in driving business development, fortifying
government relationships, enhancing customer interaction,
and participating in employee management and development.
Dow in China: Innovating for Growth
At the Shanghai Dow Center, Dow researchers and
customers are working side-by-side to turn market
opportunities into profitable solutions. The R&D facility’s
unique Customer Innovation Center converts concepts into
prototypes – giving customers a first-hand opportunity to
experience how their lotions will feel on their customers’
skin or how their paints will be nearly odorless.
By investing in people, infrastructure and research, Dow is
able to quickly find solutions to unique local needs and tap
new opportunities in new markets. For example, with the
acquisition of Rohm and Haas in 2009, Dow has significantly
expanded its electronic materials footprint and coatings
capacity in mainland China and Taiwan.
As a result, nearly 90 percent
of Dow’s revenue in Greater
China was derived from our
combined Performance
segments in 2010.
Three decades after Dow first began
doing business in China, the Shanghai Dow
Center demonstrates how Dow is using its innovation
pipeline to support the growth of its customers in
China. The center houses more than 1,500 employees,
including some 500 scientists and researchers working
across 80 integrated labs.
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2010 Annual Report