Against a challenging backdrop for the global chemical industry, Dow has taken another significant step forward in its capacity expansion in China. On April 8, 2026, Dow Silicones (Zhangjiagang) Co., Ltd. officially broke ground on its 2,500 ton/year silicone polymer batch line expansion project, marking a new chapter in the company's capacity expansion in China.
Over Two Decades of Deep Cultivation: Zhangjiagang Site Now Dow's Asia-Pacific Core Hub
Dow's Zhangjiagang manufacturing site, which commenced operations in 2002, has been in development for over two decades. Covering nearly 1.1 million square meters, it has become one of Dow's largest production bases in the Asia-Pacific region and houses one of China's largest and most advanced integrated silicone production units. Since establishing a presence in Zhangjiagang in 1998, Dow has completed 19 major projects with a total investment of $3 billion, making it the largest foreign-invested enterprise in the city.
The site comprises multiple entities, including Dow Silicones (Zhangjiagang) Co., Ltd., Dow Siloxane (Zhangjiagang) Co., Ltd., Dow Chemical (Zhangjiagang) Co., Ltd., and Dow (Zhangjiagang) Investment Co., Ltd., forming a highly integrated industrial chain from upstream intermediates to downstream finished products.
Currently, the Zhangjiagang site boasts a 120,000 ton/year oxo-alcohols production unit, a 120,000 ton/year formulated polyether polyols production line, siloxane and fumed silica units with a combined annual capacity of 210,000 tons, a world-class gas-phase polyethylene catalyst plant, and a complex downstream silicone product manufacturing line producing silicone resins, liquid silicone rubber, silicone sealants, adhesives, and more.
Two Expansions in One Year: Deepening Downstream Footprint
Notably, this marks the second time in just over a year that Dow has advanced a silicone expansion project at its Zhangjiagang site. In March 2025, Dow's downstream silicone product expansion project at the Zhangjiagang site was officially completed and commissioned. That project, which began construction in June 2023, is designed to serve rapidly growing markets such as electronics, transportation, renewable energy, packaging, and construction.
Subsequently, in October 2025, the construction planning permit for Dow Silicones (Zhangjiagang) Co., Ltd.'s 2,500 ton/year silicone polymer batch line expansion project was approved, paving the way for the latest groundbreaking. This project involves constructing new Class A production units and supporting facilities on the site's own land, procuring equipment such as filters, vacuum pumps, and transfer pumps, and upon completion, will produce 2,500 tons of silicone polymer annually.
Expanding Amid Industry Contraction: A Strong Vote of Confidence in China
While the scale of this expansion project is relatively modest at 2,500 tons, its symbolic importance should not be underestimated. At a time when many industry players are scaling back, Dow's decision to continue investing in China is not merely a capacity expansion but a clear signal to the market.
Strategically, Greater China is already Dow's second-largest global market and one of its most important strategic growth regions. Crystal Huang, President of Dow Greater China, emphasized earlier in 2026 that China possesses a uniquely complete manufacturing industrial chain and an efficient logistics system, and that demand for high-performance, low-carbon materials in the new energy sector provides a vast application landscape for Dow.
Previously, Dow signed a Memorandum of Understanding with the Zhangjiagang Free Trade Zone, planning to increase investment by $300 million at the Zhangjiagang site over the next five years, significantly expanding capacity for silicone intermediates and finished products to meet rising global demand. Mauro Gregorio, President of Dow Performance Materials & Coatings, noted that rapidly growing demand in key application markets such as automotive and transportation, building and infrastructure, consumer electronics, and home and personal care is a key driver of this investment plan.
Government-Enterprise Collaboration: Jointly Promoting High-Performance Silicone Industry
On the same day as the groundbreaking, Han Wei, Secretary of the Zhangjiagang Municipal Committee, led a delegation to the United States to visit Dow's headquarters and hold talks with Kevin Kolevar, Vice President of Dow. Han Wei stated that the Zhangjiagang Municipal Committee and Government would continue to support the development and expansion of Dow's Zhangjiagang site and expressed hope that Dow would continue to increase its investment in Zhangjiagang.
Kevin Kolevar thanked Zhangjiagang for its long-standing care and support and indicated that Dow would accelerate progress on high-performance silicone downstream projects at the Zhangjiagang site, increasing investment in Zhangjiagang in areas such as new silicone materials, consumer solutions, and low-carbon sustainable development. The two sides also held in-depth discussions on the future development direction of Dow's Zhangjiagang site, aiming to attract more new investment projects.
Yoke Loon Lim, President of Dow Greater China, previously stated at the signing ceremony that the Memorandum of Understanding is testament to Dow's long-term commitment, and that this investment plan confirms the company's strong confidence in China's rapid market growth, further strengthening Dow's ability to provide innovative materials science solutions to customers in China and the broader Asia-Pacific region.
Looking Ahead: Continued Deepening of China Market Presence
Dow has clearly stated that it plans further downstream silicone investments in Zhangjiagang in the future. With rapid development in China's emerging fields such as photovoltaics, new energy vehicles, AI data center liquid cooling, and humanoid robot simulation skin, the penetration of silicone materials into these high-end application scenarios is accelerating, generating significant incremental demand.
This expansion project is expected to provide strong support for Dow to further enhance its silicone polymer supply capacity in China and the Asia-Pacific region. Upon completion, the integrated advantages and downstream product competitiveness of Dow's Zhangjiagang site, as its largest production base in the Asia-Pacific region, will be further strengthened.
Source: Dow
