Dow looks to double Taiwan sales to US$1.5 bil. by '15
By Camaron Kao, The China Post
August 31, 2012, 12:20 am TWN
The Dow Chemical Company (Dow, 陶氏化學股份有限公司) announced yesterday that the company aims to double its sales in Taiwan to US$1.5 billion by 2015.
The company made the announcement when President of Greater China Region Peter Sykes visited Taiwan.
Dow Taiwan Executive General Manager Chen J. R. (陳政群) stated that the company aims to achieve the ambitious goal by emphasizing the following aspects: paying close attention to the booming green business industry in Taiwan, building partnerships with companies Dow deems to have great potential and growing with these companies, ameliorating its organization to make itself more efficient, and acquiring the ownership of local small- and medium-sized enterprises.
The economic growth in Taiwan will also provide momentum for the company to grow, said Chen.
Primary Drive of Growth
Sykes added that the company not only provides materials for its customers' immediate electronic production but also brings a broader portfolio of products onto the table, creating possibilities for cross-selling and meeting broader needs.
Moreover, the company makes investments in innovation and developing new products, Sykes said. "These will be the primary growth drivers for our company in the next few years."
The Greater China president said the company will have a massive new supply of a whole variety of chemical products beginning in 2015 when the petrochemical complex the company built in Saudi Arabia is operational. "It is a US$20 billion investment, and almost half of its output will be coming to Asia-Pacific."
Enough Capacity to Increase Output
Asked about future acquisitions, Sykes said that the company will not rule out selective acquisitions, but the company currently has enough capacity to increase its output.
Sykes said that less than three years ago, the company merged with Rohm and Haas, which was the largest merger in the company's history. The company's size in Taiwan more than doubled as a result.
As a result, there are new manufacturing facilities in Taiwan if the company needs to increase its output, the Greater China president said.
Later this year, new factories in southern China will also be operational, Sykes stated.
Advantages of Taiwan
According to Chen, Taiwan has a high-quality workforce that can contribute to innovation. The company also greatly benefits from the Economic Cooperation Framework Agreement early harvest list.
Chen added that the trend in Taiwan is in-line with the trends on which Dow focuses. Dow is watching closely and sets its strategy based on the global trend of green energy, increasing public facilities and infrastructure, emphasis on health and medical care, and a growing consumer market worldwide.
Chen stated that Dow has diverse customers in many industries, and 90 percent of sales in Taiwan are thanks to high value-added products.
Currently, Dow has approximately 600 employees in Taiwan, accounting for 16 percent of its total workforce. The revenue of the company in Taiwan in 2011 was US$750 million, which equals to 16 percent of its total revenue in the Greater China area.