SHANGHAI - November 02, 2010
The Dow Chemical Company (NYSE:DOW) and the Shenhua Group (Shenhua) announced today that they have taken another important step forward by submitting Project Application Report (PAR) to the Chinese government for its approval to build and operate a world scale integrated complex of coal, power and chemicals in Yulin city, Shaanxi province. Meanwhile, discussions with relevant stakeholders are ongoing as the two partners continue to advance the project.
“We are pleased to complete this important next step as we progress through the government approval process,” said Peter Sykes, president, Dow Greater China. “In collaboration with Shenhua and with support from the various levels of government and all other relevant stakeholders, we have been making tremendous progress over the last few years. We are committed to China and to a successful partnership with Shenhua. We look forward to implementing a successful project in Yulin which will be a key element of our business growth strategy ranging from our building blocks to our downstream Performance and Advanced Material portfolios across Asia Pacific.”
“The PAR submission for government approval marks another important milestone for the project and we are truly excited at the progress that we’ve made so far. We have built an excellent relationship with Dow and we believe the success of this project between Shenhua and Dow will be a showcase of great partnership between a leading Chinese state owned enterprise and a leading multinational corporation doing business in China,” said Wu Xiu-Zhang, president of China Shenhua Coal to Liquid and Chemical Company Limited.
Overall resource conservation is a key design principle for the project, with advanced technology planned to optimize use of natural resources and minimize environmental footprint and water usage. The products produced will meet the highest international specifications and will provide a local and reliable supply to Chinese industries.
The project supports the Chinese government’s national strategy of “Going West” by making a significant contribution to the regional economy and creating high quality jobs in Shaanxi Province. It also supports China’s strive to build a resource-conserving and environment-friendly society by ensuring the coordinated development of energy production and environmental protection.
About The Dow Chemical Company
Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2009, Dow had annual sales of $45 billion and employed approximately 52,000 people worldwide. The Company’s more than 5,000 products are manufactured at 214 sites in 37 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
About Shenhua Group
Shenhua Group Corporation Limited (Shenhua Group) is a state-owned enterprise, founded in October 1995 with the approval of the State Council pursuant to Corporate Laws. Shenhua Group is a diversified energy enterprise with major businesses centering on coal production and sales, power generation, coal liquefaction and coal chemicals, railway transportation and port management. Shenhua Group is one of the most competitive and comprehensive energy companies in China. Now it has become the largest coal company in China and coal supplier in the world. There are totally 27 holding subsidiaries and shareholding companies under the Group. Shenhua Group owns 58 coal mines with raw coal production capacity of 327.6 million tons and product coal sales 357.2 million tons with a mortality rate of 0.027 per million tons of raw coal production in 2009. It has built 27 coal-fired power plants and 17 wind power plants with a total installed capacity of 26817.9MW and generated power of 118.8 billion KWH, a self-owned railway of 1,369 kilometers with a transportation capacity of 136 billion ton.kilometers and two sea ports with a handling capacity of 104.41 million tons per annum. Shenhua Group has made great achievements in the field of coal to liquids and chemicals where the direct coal liquefaction plant with independent intellectual property and the first coal-to-olefin plant in the world have all been put into operation. By the end of 2009, Shenhua Group has 163,745 employees, with a total asset of RMB490.8 billion and total sales revenue of RMB161.2 billion in 2009. Its profit level ranks among the top state-owned enterprises. Adhering to the “outlook of scientific development”, Shenhua Group will stick to the development strategy of “pursue scientific development, re-shape Shenhua, and double the economic aggregate in 5 years” and further deepen the development of a “Five Model” enterprise with which to improve corporate operation quality and returns. Shenhua Group strives for becoming an international first-class energy enterprise. More information about Shenhua Group can be found at www.shenhuagroup.com.cn.
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