Dow concludes water-treatment firm purchase

Dow Chemical Co yesterday completed its acquisition of a leading Chinese water-treatment company to further strengthen its portfolio in the sector.

The purchase of Zhejiang Omex Environmental Engineering Co, based in Huzhou in Zhejiang Province, is believed to be the first privately run firm to be acquired by Dow in the Chinese market.

Terms of the deal were not revealed as the sum fell below US regulatory requirements for disclosure, said Ian M. Barbour, general manager for Dow Water Solutions.

The acquisition will help Dow expand its presence in the growing global market for filtration systems and equipment and give OEE easier channels to the international market, said Barbour.

The demand for environmentally sustainable water treatment equipment is growing fast in China and around the world, and many giant international companies such as Siemens AG and General Electric Co are involved in the business.

"We very focus on technology ... Siemens is actually our customer," Barbour said. "In one sense, we are competing with them, but in another, we supply our technology to them."

Frankie Ko, vice president of business development for Dow China, said the company intends to carry out more acquisitions in the country.

Midland, Michigan-based Dow has so far invested more than US$500 million in China, the third biggest market after its home turf and Germany. Last year, China contributed about 5 percent to Dow's global sales of US$46 billion.