Dow Chemicals wins $2.48 bn arbitration award over scrapped Kuwait JV

05 Mar 2013

1

Petrochemical Industries Co of Kuwait (PIC), a unit of Kuwait Petroleum Corp, was yesterday ordered by the International Court of Arbitration to pay $2.48 billion to Dow Chemical Co for cancelling a planned equal joint venture in 2008.

Dow packagingIn May 2012, the arbitrator had awarded Dow Chemical a partial payment of $2.16 billion, but added another $318 million as interest and costs yesterday, increasing the full and final payment to $2.48 billion.

In late 2008, Michigan-based Dow Chemical and PIC agreed to set up a $17.4 billion joint venture to be known as K-Dow. Under the deal, Dow Chemical was to transfer its basics plastics business and other assets into the venture, in exchange for about $9 billion in cash.

The JV would have manufactured polyethylene (PE), polypropylene (PP), and polycarbonate and related licensing and catalyst technologies. PE and PP comprise more than half of global polymer demand.

PE is the most widely used of all plastics and can be found in everyday products from food packaging, milk jugs and plastic containers to pipes and liners, while PP is a versatile plastic used in fibres, packaging films, durable goods, automotive parts, and consumer applications.

The deal had not gone down too well with some Kuwaiti lawmakers who said the project was not economically viable in view of the global financial crisis and slumping petrochemical sales.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers