Global Processing

Dow Chemical-Kuwaiti venture to launch by January 1st

December 1, 2008

Officials say a joint petrochemicals venture between Dow Chemical Co. and a Kuwaiti company will begin operations by Jan. 1, according to the Associated Press. Dow Chemical and Petrochemical Industries Co. announced they have signed the necessary documents to form K-Dow Petrochemicals. They say the total enterprise value of K-Dow is about $17.4 billion. Dow expects to receive $9 billion in pretax proceeds related to the transaction, including a $1.5 billion special cash distribution from K-Dow. K-Dow will make plastics for numerous uses, including consumer products, automotive parts and drug processing. It will be based in the Detroit area and is expected to announce a headquarters site by year''s end.