Dow, PIC form two new joint ventures

By OGJ editors

HOUSTON, June 7 -- Dow Chemical Co., Midland, Mich., and Kuwait Petroleum Corp. subsidiary Petrochemical Industries Co. (PIC) have formed two new 50:50 global petrochemical joint ventures, pending regulatory approvals.

To form MEGlobal, a JV to manufacture and market monoethylene glycol and diethylene glycol (EG), Dow will sell to PIC a 50% interest in its Canadian ethylene glycol assets. MEGlobal will purchase ethylene from Dow and market excess EG produced in Dow's US and Europe plants.

To form Equipolymers, which would manufacture and market polyethylene terephthalate resins (PET) and manufacture purified teraphthalic acid (PTA), Dow will sell to PIC a 50% interest in its PET-PTA business, which includes assets in Germany and Italy.