Dow Greater China

SEPA and Dow team up to promote Cleaner Production in China
Letter of Intent signifies commitment to strengthening sustainability and environmental performance of Chinese SMEs

Beijing - June 16, 2004

Dow Chemical China Investment Limited (Dow) today signed a Letter of Intent (LOI) with the State Environmental Protection Administration (SEPA) of China to support the promotion and development of Cleaner Production (CP) in the country.

Cleaner Production, in essence, is the continuous application of an integrated preventive environmental strategy to processes, products and services to increase efficiency and reduce risks and possible damage to humans and the environment.

Dow will contribute RMB 6,000,000 (Approx. US$720,000) over the next three years to the partnership, scheduled to start in January 2005. The “Regulation on Promotion of Cleaner Production”, put in practice in 2003, is a legislation designed to promote CP in China and forms the basis of Dow and SEPA’s collaboration.

"China faces severe structural pollution problems and urgently needs to implement CP processes in the SMEs in the chemical, papermaking, electroplating, dyeing, pharmaceutical and brewery industries in order to combat this pollution," said Mr. Wang Jirong, the Deputy Director of SEPA. "We are delighted to be working together with Dow Chemical to help solve this problem. With their technical knowledge, strong financial support and unparalleled experience we can effectively pursue the development of cleaner production processes for such heavily polluting industries. This is a very good beginning."

In the next three years, SEPA will select 10-20 Chinese enterprises from around the country annually to participate in the demonstration projects. Local participating SMEs are to be selected from the chemicals industry or related industries, such as pharmaceuticals, dyeing, electroplating, papermaking and brewery. All funds will be managed by the China Environmental Protection Foundation, a non-profit organization.

The Dow/SEPA partnership will support the development of CP through demonstration projects in small-and-medium-sized businesses (SMEs) and the education and training of employees of those SMEs. It will also support capacity building in government agencies, such as awareness raising campaigns, compilation and dissemination of up-to-date information on CP practices and technologies, and human resources development of personnel at various levels.

“Dow’s commitment to China is for the long term, and we are delighted to partner with SEPA in this important initiative that will contribute to a cleaner environment in China,” said Bill Stavropoulos, Chairman of the Board and Chief Executive Officer of Dow. “CP promotes sustainable production and consumption and aligns with Dow’s beliefs in, and commitment to, sustainable development in China and around the world.”

Jim McILvenny, President of Dow Greater China; Zhang Lijun, Director General of Pollution Control Department of SEPA and Zhou Guiling, Secretary General of the China Environmental Protection Foundation, signed the LOI at the Diao Yutai State Guest House today.

Dow and Sustainable Development

Dow's continuous journey towards delivering on the promise to improve the standard of living the world over is reflected in its corporate mission – to constantly improve what is essential to human progress by mastering science and technology.

In January 1999, Dow signed on to the Guiding Principles of Responsible Care, a voluntary initiative within the global chemical industry to safely handle its products from inception in the research laboratory, through manufacture and distribution, to ultimate disposal. A pioneer in sustainability reporting, Dow began publishing global public reports within the same year.

Dow’s CSR initiatives have been recognized by sustainability groups. For the last five years since inception, Dow has been rated as one of the leading global chemical companies in a comprehensive assessment of the 2,500 largest companies in the Dow Jones Sustainability Index.

About Dow
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

For further information about Dow, visit www.dow.com.


For Editorial Information:

Peng Defu/Qian Yong
Department of Pollution Control, SEPA
86-10-67116021
Fax: 86-10-67116021
hellow1997@sina.com, qian.yong@zhb.gov.cn

Kay Yau
Dow Chemical Pacific Ltd.
Hong Kong
852-2879 7316
Fax: 852-2827 0201

Vivian Lu
Dow Chemical China Investment Limited
Beijing
86-10-8518 3399
Fax: 86-10-8518-3999

Ai Ai/Stella Zhou
Ketchum Newscan Public Relations
Beijing
86-10-85803388-57
Fax: 86-85803318
ai.ai@knprbj.com, stella.zhou@knprbj.com