Plans for global olefins and polyolefins jv with Kuwait / First major project in 'asset light' strategy

摘要

Just when sceptics were beginning to doubt that the "asset light" strategy announced by Dow Chemical (Midland / Michigan / USA; www.dow.com) was making any substantial progress, plans for an extended cooperation with Kuwait's Petrochemical Industries Company (PIC, Sabahiya; www. pic.com.kw) have been revealed. The strategy foresees linking Dow assets with companies that have access to raw materials. The two companies said on 13 December 2007 they had signed a memorandum of understanding (MOU) calling for a 50:50 joint venture to produce ethylene and derivatives, PE, PP and PC. The transaction, which Dow said would create the world's largest producer of polyolefins, as well as the largest manufacturer of ethylene oxide (EO) ethylene glycol and EO derivatives, is projected to close at the end of 2008.