Dow’s Asia assets to be unaffected by PIC JV

17 December 2007 08:27  [Source: ICIS news]

SINGAPORE (ICIS news)--Dow Chemical’s Asia-Pacific assets are unlikely to be affected by its new $11bn joint venture with Kuwait’s Petrochemical Industries Co (PIC), a spokeswoman with the US major said on Monday.

“At this point, none of Dow’s assets in the Asia Pacific region fall within the scope of the joint venture,” she said, adding that Dow and PIC will continue to work together on finalising the definitive agreements, which is expected to complete by the end of 2008.

Dow’s assets in Asia-Pacific include a 50:50 joint venture, Siam Polyethylene, with Thailand’s industrial conglomerate Siam Cement, Optimal Chemicals in Malaysia and manufacturing sites in South Korea, Vietnam, China, Philippines, and India.

The spokeswoman didn’t confirm if Dow’s assets in Europe or the Middle East would be affected.

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

It has yet to reveal the names of these businesses.

The new alliance will be headquartered in the US and capitalised at $11bn.

The joint venture, to be headquartered in the US, will manufacture and market polyethylene (PE), ethylenamines, ethanolamines, polypropylene (PP) and polycarbonate (PC).

It will give Dow access to feedstock from PIC parent Kuwait Petroleum Corp’s future refinery projects, the company said.

($1 = €0.70)

By: Jeanne Lim
+65 6780 4359

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