BEIJING, June 23 /PRNewswire/ -- The Dow Chemical Company (NYSE: DOW),
China Petrochemical Corporation (Sinopec) and Tianjin Petrochemical
Corporation (a subsidiary of Sinopec), today signed a Letter of Intent to
jointly develop an integrated ethylene and down stream derivatives project in
Tianjin, China.  The signing ceremony took place at the Great Hall of the
People in Beijing.
    The first phase of the project will consist of an ethylene cracker along
with a number of derivatives plants, such as polyethylene, polystyrene,
polyurethane and epoxy.  The pre-feasibility study report and project proposal
are under development.  The complex is expected to start up in the beginning
of the 21st century.
    Speaking at the signing ceremony, Dow's President and Chief Executive
Officer, Mr. William S. Stavropoulos, said that the project is a clear
demonstration of Dow's commitment to the China market and how the company
intends to create value in Asia Pacific.  "Dow has a long cooperative
relationship with Sinopec and its subsidiaries," said Stavropoulos.  "A
partnership between Dow and Sinopec represents the coming together of two
highly skilled and experienced petrochemical producers.  Sinopec is the
largest supplier of petrochemical products in China and is influential in
China's petrochemical industry.  Sinopec brings a thorough understanding of
China and its markets, as well as its high quality human resources.  Dow
brings international experience, world-class technologies and established
products desired by multi-national customers.  I firmly believe this
Partnership will be vibrant and strong because of the synergy between the two
companies and that this project will be a significant contributor to the value
growth of Dow in Asia Pacific."
    Sinopec's President, Mr. Sheng Huaren, said that the signing of the Letter
of Intent signifies a new development in the friendly cooperation between Dow
and Sinopec.  "The project under study is one that is world-scale, high tech,
highly cost-effective and world competitive.  Dow is one of the world's
renowned chemical companies, especially in advanced plastics production
technology, research and development, and is a leader in the world market.  I
believe that our mutual cooperation will help to enhance the technology of our
country's petrochemical industry, our management standards and enable the
development of our industry."
    The Dow Chemical Company, headquartered in Midland, Michigan, U.S.A., is
the fifth largest chemical company in the world, with annual sales of more
than U.S. $20 billion.  Dow manufactures and supplies more than 2,400 product
families, including chemicals, plastics, energy, agricultural products,
consumer goods and environmental services to customers in 157 countries around
the world, and employs approximately 40,300 people worldwide.  Dow is the
world's largest producer of chlorine, caustic soda, ethylene, polyethylene and
polystyrene as well as a leading producer of polyurethane and epoxy.  Dow has
more than 40 years' experience in Asia Pacific where it has manufacturing
facilities in 10 countries and business offices in 15 countries across the
region.
    Sinopec is the largest petrochemical supplier in China and is mainly
engaged in the production and sales of petroleum and energy based refining,
petrochemicals, synthetic fiber, synthetic rubber, synthetic resins,
fertilizer, and basic organic chemical raw materials.  It has 25 giant and 13
large oil refining, petrochemical, synthetic fiber and fertilizer
corporations.  Sales in 1996 amounted to U.S. $27 billion.  The company
accounts for 85 percent of the country's crude oil processing capacity,
and 82 percent of the nation's ethylene capacity.  Tianjin Petrochemical
Corporation is one of the main subsidiaries of Sinopec and is mainly engaged
in the production and sales of oil refinery, petrochemicals and synthetic
fibers.  The company has about 30 years' experience in production.

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