Industry News

Dow Chemical First to be Granted Free Trade Zone Trading and Distribution Rights in China

Published on 2005-09-02. Author : SpecialChem

Shanghai, China -- Dow Chemical has become the first foreign invested enterprise (FIE) located in a free trade zone (FTZ) to receive an official approval to extend its trading and distribution rights in China.

"Trading and distribution rights" under China's WTO commitments encompass, among other things, the ability of FIEs in China to import products and sell them directly, either wholesale or retail, to domestic customers. The extended distribution rights enable Dow to sell products directly to domestic customers, bringing the company even closer to China's growing market.

"China represents a key part of Dow's strategic and future growth. The extended trading and distribution rights put us in a unique position to even more effectively meet the growing needs and demands of our customers in China," said Jim McIlvenny, President of Dow Greater China. "We are encouraged by the Chinese government's recognition of Dow's excellence and industry leadership, and we will continue to deliver world class products and services in support of China's continuing growth."

The extension of distribution rights is a significant development that strengthens Dow's operations in Waigaoqiao, Shanghai, the country's largest FTZ. Home to 8,400 FIEs and representing US$10.3 billion in investment, the zone handled more than US$22 billion in imports and US$8 billion in exports last year alone.

Dow has a significant presence in Greater China with 10 manufacturing sites, business centers in 5 major cities and more than 1,300 employees. With revenues of US$2.2 billion in 2004, Greater China is the third largest geography in terms of sales for Dow behind the United States and Germany.

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 $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: 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 43,000 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.

Source: Dow

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