Dow, Mitsui & Co to form biopolymers packaging joint venture

19 July 2011 14:20  [Source: ICIS news]

HOUSTON (ICIS)--Dow Chemical and Japan’s Mitsui & Co plan to form a biopolymers joint venture for global flexible packaging, hygiene and medical markets, the US-based chemicals major said on Tuesday.

Under the terms of a memorandum of understanding between the firms, Mitsui will become a 50% equity interest partner in Dow’s sugar cane growing operation in Santa Vitoria, Minas Gerais, Brazil.

The initial scope of the joint venture includes production of sugar cane-derived ethanol for use as a renewable feedstock source, bringing new, biomass-based feedstocks to Dow while diversifying the company’s raw material streams from traditional fossil fuels, it said.

In a first phase, the partners will build a sugar cane-to-ethanol production facility in Santa Vitoria. Construction is expected to begin in the third quarter of 2011.

Dow expects to finalise the joint venture by the end of 2011, subject to regulatory approvals.

“This landmark move underscores Dow’s commitment to invest for growth in high-value, innovation-rich sectors through strategic partnerships,” said Dow CEO Andrew Liveris.

Financial terms or capacities were not disclosed.

Last year, Dow Chemical and Mitsui formed a joint venture to build an 800,000 tonne/year membrane-based chlor-alkali plant at Dow’s site in Freeport, Texas.

Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues
For more on Dow Chemical and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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