Dow Corning confident in China
(CHEN QIDE)
10/12/2001
DOW Corning Corp, the world's leading supplier of silicon-based technologies, is still showing full confidence in its development in China though it is facing fierce competition from overseas counterparts. "Competition is keen but I still reckon China as a promising market worth our further expansion," said Gary Anderson, chairman of the corporation, on his recent tour of Shanghai. He came to the city to launch Dow Corning's Chinese-language corporate website. He said the website, part of the new moves the corporation has made in China, is aimed at strengthening services to China's key industries. Dow Corning, with its headquarters in Midland, Michigan in the United States, last year created sales revenue of US$2.75 billion with operating income of US$145 million. "It is the right time to bring more sophisticated technology and service to keep pace with China's rapid development," the chairman said. It has invested US$20 million in Shanghai's Songjiang Industrial Development Zone to set up a plant and its annual sales in China totalled $100 million last year. The corporation is also actively sourcing raw materials in China, with the annual purchasing of metal silicon of more than US$6 million from Northeast China's Liaoning Province, he said. "Dow Corning is bullish on China and will investigate additional opportunities to expand its business operations, manufacturing facilities and market presence," Anderson said. The chairman believes that China's commitment to infrastructure spending will bring tremendous business opportunities for Dow Corning. Anderson said China's entry to the World Trade Organization will open up numerous sectors for trade, adding that Dow Corning will focus on electronics, personal and household care and automotive sectors for next year. "To better serve customers in these sectors," he said, "the corporation is dedicated to expanding distribution channels throughout the country, especially in Sichuan and Southwestern China." The Songjiang plant initially manufactured silicone emulsion and sealant. Now the corporation is looking to establish a construction testing laboratory in Songjiang for servicing construction projects in China, the chairman said. He added the plant expansion will also increase emulsion production to cover expanding customer bases for personal care and textile industries. Anderson has made three commitments to the local market to tap potential demand: advanced technology, new investment and a strong workforce.
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