Dow Chemical to pursue investment in Thailand, no plan to shift to other AEAN countries

19-Mar-10

Dow Chemical plans to continue with its commitment to pursue its investment in Thailand for long-term and sustainable growth. Dow is undeterred by the Map Ta Phut crisis, and has no plan to shift to other ASEAN destinations, thanks to the company having a strong local partner in Siam City Cement (SCG). One of Dow Chemical's values is to protect the planet, and following this policy, Dow Chemical Thailand has conducted health-impact assessments of all its new projects in Map Ta Phut. Though delay of the ventures' petrochemical projects in Map Ta Phut has impacted its revenue target, Dow, its partner and government agencies are trying to resolve the problem, so as to resume construction work and complete the projects as soon as possible. In 2008, Dow Chemical Thailand decided to invest US$3 bln (Bt97 billion) in five plants known as the Thai Growth Project. Three of the plants are investments of SCG-Dow Group, one is a co-invested project with Belgium's Solvay and the other is Dow Chemical's own investment. Siam Polyethylene II at the JV’s Map Ta Phut site with production capacity of 350,000 tpa, has seen completion of construction work and is undergoing a trial run. The 390,000 tons propylene-oxide plant at the Asia Industrial Estate site in Rayong province has been permitted by the Central Administrative Court to resume construction work, following an earlier suspension. Another project that has resumed construction is the power, utilities and infrastructure project at the Asia Industrial Estate, for the provision of utilities and infrastructure for all plants in the estate. Dow Chemical is the wholly owned investor in the project. The only one of the company's projects still suspended by the court is the 220,000 tpa specialty-elastomers train project.