Dow, Kuwaiti Partner Form Two Petrochemical Ventures

Dow Chemical and Petrochemical Industries Co. (PIC) of Kuwait are forming two 50–50 joint ventures in ethylene glycol and polyethylene terephthalate resins. Under the deal, Dow will sell PIC a 50% interest in its ethylene glycol units in Fort Saskatchewan and Prentiss, Alberta. The EG joint venture, to be called MEGlobal, will also market excess EG from Dow's plants in the U.S. and Europe as well as from affiliates of both Dow and PIC. To form the PET joint venture, called Equipolymers, Dow will sell PIC a 50% interest in its PET plants in Germany and Italy. Dow and PIC are already partners in the Kuwait-based Equate joint venture, which operates ethylene, polyethylene, and EG plants. The companies are also building a new Kuwaiti complex making ethylene, EG, ethylbenzene, and styrene that is scheduled to start up in 2007. PIC has dubbed the new joint ventures its biggest investment outside its home country.