SEPA-Dow Cleaner Production National Pilot Project Achieves Strong Start and Outstanding Results

Beijing - April 12, 2006, Only 12 months after its launch, the national pilot project on Cleaner Production between the State Environmental Protection Administration (SEPA) of China and The Dow Chemical Company (Dow) has achieved significant economic and environmental benefits, creating positive impacts on the society as a whole.

A total of nineteen enterprises from various industries such as the chemical, dyeing, electronics, brewery and food industries from seven provinces and municipalities participated in the project. Over 250 representatives from local Environmental Protection Bureaus (EPB), Cleaner Production (CP) audit institutes and participating enterprises went through relevant Cleaner Production training courses. A total of twelve participants, including the Environmental Protection Bureau of Liaoning Province, the Cleaner Production Center of Zhejiang Province and APBC Electronics (SZ) Co. Ltd., have been recognized for their outstanding performance and contribution.

Following an initial Cleaner Production audit, participating enterprises identified 798 improvement measures for implementation. So far, 538 measures have been implemented, generating an overall economic benefit of RMB 17.2475 million, which translates into an annual economic profit of RMB 103.485 million. These measures have also brought about significant positive impact on environmental protection, including a reduction of waste water by 3.383 million cubic meters; exhaust gas emissions by 553.5 tons; liquid waste by 432.39 tons; solid waste by 487 tons, electricity usage by 835,100 kilowatts/hour; released steam by 27,797 tons; water usage by 1.7091 million tons and coal usage by 2,557 tons. Another 91 measures, to be implemented in the future with enhanced environmental benefits, are expected to achieve an estimated economic profit of RMB 24.00635 million annually.

Wang Jirong, Vice Minister of SEPA, said: "In the past twelve months, all parties involved have worked closely to promote Cleaner Production in the seven pilot provinces and achieved important economic and environment benefits, creating positive impacts on the society as a whole. The achievements of 2005 represent a great start for the whole project"

"I call on all participating Environment Protection Bureaus and enterprises to make good use of the program in establishing higher environmental standards through training, audits and Cleaner Production initiatives. You will become an excellent role model for others to follow in the drive for developing a resource-saving and environmental-friendly society" Ms. Wang added.

Jim McIlvenny, President of Dow Asia Pacific said: "I’m very pleased by the significant benefits - both economic and environmental - being brought about by this project which is only in its first year of implementation. It shows very clearly that Cleaner Production always pays.

"I want to thank the visionary leadership of SEPA who supported this collaboration with Dow. This has proven to be a worthwhile initiative and I’m delighted to see that Dow is playing its part in contributing to the sustainable development of China"

In 2006, twenty one enterprises from seven provinces, municipalities and autonomous regions including Beijing and Inner Mongolia will participate in the pilot project.

Jointly launched by SEPA and Dow in 2005, the three-year Cleaner Production pilot project focuses on small and medium-sized enterprises from the chemical and related industries, including pharmaceutical, dyeing, electroplating, paper and breweries. Dow contributes a total of RMB 6 million for the three-year project.

** See appendix I for full list of the recognized SMEs, EPBs and CP institutes

About Dow

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.





Appendix I

Winners of Outstanding Leadership and Outstanding Enterprise Awards:

1. Environmental Protection Bureau of Liaoning Province
2. Environmental Protection Bureau of Jiangsu Province
3. Environmental Protection Bureau of Guangdong Province
4. Environmental Protection Bureau of Shenzhen
5. Cleaner Production Center of Zhejiang Province
6. Cleaner Production Center of Liaoning Province
7. Cleaner Production Center of Jiangsu Province
8. APBC Electronics (SZ) Co. Ltd.
9. Shenyang Chemical Co., Ltd.
10. Shanxi Sanwei (Group) Co., Ltd.
11. Jiangsu Huachang (Group)_Co., Ltd.
12. Qingdao Soda Ash Industrial Co., Ltd.

Contact Information

Kay Yau

Dow Greater China Media Relations

The Dow Chemical Company

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