28 October 2010 20:35 [Source: ICIS news]
HOUSTON (ICIS)--The basic plastics business of US major Dow Chemical is attracting interest, and a new deal may arise in the next 12-18 months, chief executive Andrew Liveris said on Thursday.
Any deal would be different from the company's failed K-Dow joint venture, Dow said.
As a result of the divestments and shutdowns, the basic plastics business fits the company's performance mix much better than before, Liveris said during an earnings conference call.
"There is a higher value for those assets, clearly," Liveris said.
"We are a different plastics portfolio, a lot more focused," he continued. "It divides itself pretty nicely between the high-end, high-value plastics - specialty plastics if you like - that go into growth markets … and more commodity-like plastics," he said.
"We are looking at doing a different type of deal than K-Dow in the future, but we will do deals nevertheless," Liveris said. "We anticipate that will all be in the next 12-18 months."
Dow came close to establishing a plastics joint venture in 2007, when it and Petrochemical Industries Co (PIC) of Kuwait agreed to create a $17.4bn (€13.2bn) joint venture.
The so-called K-Dow joint venture with PIC fell apart at the end of 2008.
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