Update: Chemicals industry continues to expand its global footprint

Chemical plants and offices announced in China, Middle East

Dave Hannon -- Purchasing, 10/26/2009 11:00:28 AM

Dow Corning recently opened its new Middle East headquarters office in Bahrain which will house engineers, chemists and sales professionals but said it has no plans to open a manufacturing plant in the Middle East, as previously published reports had suggested.

 

"The Middle East is growing rapidly and quickly diversifying its business footprint," said Stephanie Burns, Dow Corning's president and CEO in a statement. "We recognize the region's growing impact on the global economy and are now better positioned to share the benefits of Dow Corning's silicon-based materials and technology to help the region continue to grow and compete in the global economy over the long-term."

As reported in Purchasing (see Energy prices accelerate the move to the Middle East, Purchasing, August 2008), more chemicals capacity is being located in the Middle East, both because demand is increasing in the region, but also to locate plants closer to lower-cost energy resources.

And even some chemical plants being developed outside the Middle East are leveraging partnerships with Middle Eastern governments to gain access to energy products. Reuters reports today that China's Sinopec Group signed a deal with Kuwait to build a mega refinery and petrochemical complex in southern China's Zhanjiang city capable of producing 1 million tons of ethylene a year.

Also this morning, Celanese Corp. announced it is expanding its vinyl acetate/ethylene (VAE) manufacturing facility at its Nanjing, China, integrated chemical complex.

The expansion is expected to double Celanese's VAE capacity in the region and is expected to be operational the first half of 2011.