K-Dow Petrochemicals
| Type | Joint Venture |
|---|---|
| Industry | Petrochemical Manufacturing |
| Headquarters | Michigan, United States |
| Key people | James R. Fitterling, CEO |
| Products | Polyethylene, Ethylenediamines, Ethanolamines, Polypropylene, and Polycarbonate |
K-Dow Petrochemicals was to be a $17.4 billion joint venture between The Dow Chemical Company and Petrochemical Industries Company (PIC) of the State of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation (KPC).[1]
Contents |
[edit] History
[edit] Formation
K-Dow Petrochemicals was to be a multinational corporation specializing in the manufacturing of plastics. It was an $11 billion joint venture between The Dow Chemical Company and Petrochemical Industries Company (PIC) of the State of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation (KPC).[2] On July 15, 2008 the two companies announced the location of their headquarters was to be in Southeast Michigan.[2] In the third quarter 2008 earnings conference call Dow Chemical officials stated the K-Dow Joint Venture is on track to close by the end of the year. On December 1, 2008 the two companies announced they have signed a memorandum of understanding outlining agreed upon details about the Joint Venture. The transactions was expected to close on January 1, 2009 with K-Dow expected to be an instant leading global petrochemical supplier. Operations were expected to begin on that same date.[1]
[edit] Breakup
Citing the global recession that begin in the later half of 2008, the Kuwaiti government scuttled the partnership prior to its launch on December 28, 2008.[3]
Dow currently has arbitration pending against KPC. The original MOU had a damages clause that allowed for damaged up to $2.5 Billion. Dow Chemical has stated the damages they are seeking may be in excess of that amount.
[edit] Subsidiaries
As a part of the Joint-Venture formation two of Dow Chemical's current joint-ventures Kuwait Petroleum Corporation were to be transferred to K-Dow.
- Equipolymers
- MEGlobal
[edit] References
- ^ a b "Dow and PIC of Kuwait Sign Binding Joint Venture Agreement to Launch K-Dow Petrochemicals". PR Newswire. http://biz.yahoo.com/prnews/081201/clm029.html?.v=101. Retrieved 2008-12-01.[dead link]
- ^ a b Christoff, Chris (July 15, 2008).New Dow Chemical venture to bring 800 jobs to southeastern Michigan.The Detroit Free Press. Retrieved on July 2, 2010.
- ^ Diana Elias (2008). "Kuwait scraps$17.4 billion venture with Dow Chemical". Detroit Free Press. http://www.freep.com/article/20081228/BUSINESS07/81228030. Retrieved December 28, 2008.[dead link]
[edit] External links
 |
This chemical corporation-related article is a stub. You can help Wikipedia by expanding it. |
