Dow, Kuwait's PIC form $11bn petchems jv

13 December 2007 13:35  [Source: ICIS news]

LONDON (ICIS news)--The US' Dow Chemical and Kuwait's Petrochemical Industries Co (PIC) have signed a 50:50 joint venture to market and manufacture a range of petrochemicals, the two companies said on Thursday.

 

To form the company, Dow will sell PIC a 50% share in five of its global businesses worth approximately $19bn and PIC will pay the US company $9.5bn.

 

“The joint venture, to be headquartered in the US, will manufacture and market polyethylene, ethylenamines, ethanolamines, polypropylene and polycarbonate,” the companies said in a joint statement.

 

“The JV is expected to have revenues of more than $11bn (pro forma) and employ more than 5,000 people worldwide,” it added.

 

The joint venture will mean Dow has access to feedstocks from the future refinery projects of Kuwait Petroleum Corp, PIC’s parent.

 

“This will give the new joint venture company the distinct advantage of full integration from feedstocks to derivatives, while meeting growing customer demand in emerging markets,” it said.

 

PIC already has two joint ventures with Dow - Equate Petrochemical and MEGlobal.

 

By: Lucy Craymer
+44 20 8652 3214

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