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In the first investment for a major chemical company inside Libya, Dow Chemical and Libya's National Oil Corp. are forming a joint venture to operate and expand NOC's Ras Lanuf petrochemical complex. The companies will expand existing polyethylene units and a naphtha-based ethylene cracker. They will also build an ethane-based ethylene cracker and polyethylene and polypropylene plants. The facility currently has annual capacity for 330,000 metric tons of ethylene, 170,000 metric tons of propylene, and 160,000 metric tons of polyethylene. "This venture is consistent with Dow's strategy to grow its position in basic plastics and chemicals through joint ventures," says CEO Andrew N. Liveris. Dow is also considering petrochemical joint ventures in Oman, Saudi Arabia, and Thailand. The U.S. restored full diplomatic relations with Libya in 2006 as it removed the country from the U.S. Department of State's list of state sponsors of terrorism.
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