US Dow seeks more chlor-alkali JVs in Europe, North America

03 August 2010 19:32  [Source: ICIS news]

HOUSTON (ICIS)--US major Dow Chemical will pursue more chlor-alkali joint ventures similar to the one it recently struck with Mitsui & Co, the chief executive said on Thursday.

Under that deal, the joint venture would build an 800,000 tonne/year chlor-alkali plant at Dow's complex in Freeport, Texas.

That joint venture directed about 70% of Dow's chlorine footprint to serve the company's downstream businesses, said Andrew Liveris, chief executive.

Liveris made his comments during an earnings conference call.

Regarding the remainder, "you can expect to see us find answers to that in an asset-light, equity-light construct", Liveris said.

Such a deal could involve Dow's assets in North America and in Europe, Liveris said.

Dow's asset-light strategy involves a partnering in a joint venture to reduce capital requirements.

Also, Dow was backing out of the merchant market for ethylene dichloride (EDC), Liveris said.

However, the company would continue to serve downstream customers that produce vinyl chloride monomer (VCM) and polyvinyl chloride (PVC), Liveris said. As examples, Liveris pointed to Shintech and Mitsui.

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By: Al Greenwood
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