Dow Chemical Co plans to invest US$5 billion in China over the next decade for several projects, including a potential coal-to-chemicals project in Shaanxi Province for which Dow and Chinese partner Shenhua Group Corp are conducting a feasibility study. Dow is interested to participate in large integrated refining and petrochemical projects in China. USA's largest chemical maker has invested US$500 mln in China till date.
Dow recently announced plans to form a landmark US$11 bln 50:50 venture with Petrochemical Industries Co, a unit of KPC. This JV provides an additional opportunity for Dow to participate in China, if the Kuwaiti petroleum company finds a right project. As a general strategy, China could give preference to such partners from Kuwait and Saudi Arabia which can bring crude oil resources for its large petrochemical projects.