Joint ventures (JV) are an integral part of Dow’s strategy, providing access to key markets, growth geographies, new technologies and advantaged feedstock, while at the same time lowering capital investment and reducing risk.
With a rich history in the IMEA region, Dow celebrated its 50 year anniversary in India in October 2007, and is approaching the 30-year mark in the Middle East. We have ventures and proposed ventures with the following partners.
- Gujarat Alkalies and Chemicals Limited
- E.A. Juffali and Brothers
- National Oil Corporation of Libya
- Oman Oil Company
- Petrochemical Industries Company of Kuwait
- Saudi Aramco
Competitiveness
Dow has established a number of joint ventures with upstream partners focused specifically on developing highly competitive, world-scale production facilities with access to cost-advantaged feedstocks. Dow brings technology, operational know-how, global reach and product diversity. Its partners bring cost-advantaged feedstocks, upstream expertise, local market presence and/or regional perspective.
This combination delivers a significant competitive edge to each joint venture. Optimizing the value of existing Dow assets, we have strengthened our market position and future growth potential of several of our commodity businesses by placing existing Dow assets into newly formed joint ventures. This carve-out model retains the value of integration, while reducing capital investment and further shifting the Company’s portfolio balance towards the performance businesses.
Additional value is also derived by working with partners that bring specific strengths, such as back integration to feedstocks or an expanded geographic presence. In some cases, the formation of a joint venture also generates substantial cash for Dow, with which the company can pursue investment opportunities focused on its performance businesses.
Access to geographic regions
The Company’s joint venture model has helped Dow to build its presence in several important regions, providing access to areas that were either restricted by regulation or constrained by well-established supplier relationships. By partnering with local companies, Dow has been able to swiftly develop its brand and market presence, while creating in-country manufacturing capabilities for joint ventures which in turn derive significant value from Dow’s technological and operational expertise.
Technology Collaboration Timeline
Joint ventures can provide a vital platform for technology development, defining a structure that enables full collaboration between Dow and its selected partners, as well as creating a mechanism for effective commercialization. The Company has formed several joint ventures over the years with organizations within and outside the chemical industry, specifically focused on delivering technology breakthroughs that neither party could achieve alone.
Since the 1950s, a number of joint ventures have been established or remain in development today.
1957: Dow’s first joint venture plant in India, producing Polystyrene, together with the partnership of Polychem Limited.
1985: The Arabian Chemical Company Limited was established together with E.A Juffali and Brothers in Saudi Arabia, producing Polystyrene and Latex.
1994: Dow Elanco (today Dow AgroSciences ,a wholly owned subsidiary of Dow ) and NOCIL partnered to form a joint venture known as DE-NOCIL Crop Protection Ltd. for the manufacture of crop protection products.
1995: Union Carbide (today, a wholly owned subsidiary of Dow) and Petrochemical Industries Company (PIC) of Kuwait partnered with other shareholders, to form a joint venture known as EQUATE Petrochemical Company.
2004: The strong partnership with PIC was parlayed into the formation of two additional joint ventures; MEGlobal, a global manufacturer and marketer of ethylene glycol; and, Equipolymers, a manufacturer and marketer European polyester (PET).
2007: In December 2007, the relationship with Dow and PIC advanced to a new stage with the announcement of plans to form a 50/50 joint venture to create a market-leading, global petrochemicals company – known as K-Dow Chemicals.
2007: Dow and Saudi Aramco signed a Memorandum of Understanding for the construction and operation of a world-scale chemicals and plastics production complex at the Ras Tanura complex in Saudi Arabia’s Eastern Province. As of 2007 initial engineering and design studies are underway for this project.
2007: Dow signed a Heads of Agreement with the National Oil Corporation of Libya to operate and expand the Ras Lanuf petrochemical complex. The venture epitomizes Dow’s joint venture agenda for its basics businesses – lowering capital investment while capturing the benefits of a strategic location and cost-advantaged feedstocks.
2008: Dow and Gujarat Chemicals & Alkalies Ltd signed a Joint Venture Agreement for the construction of a future chloromethanes manufacturing facility at Dahej, Gujarat, on the western coast of India.
Arabian Chemical Company (A.C.C.) & Arabian Chemical Company (Latex) Limited
EQUATE
MEGlobal
Olefins II
Ras Lanuf
Ras Tanura Integrated Project
Arabian Chemical Company (A.C.C) and Arabian Chemical Company (Latex) Limited
The Arabian Chemical Company (A.C.C.) is a joint venture with E.A. Juffali and Brothers which has two plants that manufacture STYROFOAM™ brand insulation – one in Jebel Ali Free Zone, United Arab Emirates (U.A.E), and another in Jeddah, Kingdom of Saudi Arabia. This joint venture opened in 1985 and produces roof, wall and floor insulations, as well as added-value products including pipe insulation, inserts in thermo blocks, inverted of tiles and gypsum board laminates.
Arabian Chemical Company (Latex) Limited is another joint venture with E. A. Juffali and Brothers which manufactures Latex at its plant in the Eastern Province of Saudi Arabia. It was established in 1995 and specializes in carpet sales and construction latex and, since 1998, paint latex as well.
Formed: 1985
Ownership:
E.A. Juffali Bros: 50%;
The Dow Chemical Company: 50%
Headquarters location: Kingdom of Saudi Arabia
Production Facilities: Two manufacturing plants producing STYROFOAM – Jebel Ali, United Arab Emirates (U.A.E) and Jeddah, Kingdom of Saudi Arabia. One Latex plant in the Eastern Province of Saudi Arabia
Products: STYROFOAM brand insulation and Latex
Product Applications: Roof, wall and floor insulation, pipe insulation, thermo blocks, inverted tiles and gypsum board laminates
EQUATE
EQUATE Petrochemical Co. K.S.C. is a joint venture, with a state of the art petrochemical complex located in Kuwait, dedicated to producing polyethylene and ethylene glycol. Supplying to markets in Asia, the Middle East, Africa and Europe, EQUATE serves the rapidly expanding global demand for value-added plastics and chemicals of the highest quality.
Formed: 1995
Ownership:
Petrochemical Industries Company K.S.C. 42.5%;
Union Carbide Corporation (which is owned 100% by The Dow Chemical Company) 42.5%;
Boubyan Petrochemical Co. K.S.C. 9%;
Al-Qurain Petrochemical Industry Company K.S.C. 6%
Headquarters Location: Salmiya ,Ras Al-Ard
Block 2, Salem Al-Mubarak Street
Olympia Towers - Floor 10
Production Facility: Shuaiba, Kuwait
Products: Polyethylene, Ethylene Glycol
MEGlobal
MEGlobal is a world leader in the manufacturing and marketing of merchant monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG). Established in July 2004, the company is a joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait. With approximately 200 employees worldwide, the company serves customers around the world.
Formed: 2004
Ownership:
Petrochemical Industries Company of Kuwait 50%;
The Dow Chemical Company 50%
Headquarters Location: Dubai, United Arab Emirates
Production Facilities: Fort Saskatchewan and Red Deer, Alberta, Canada
Products: Monoethylene glycol (MEG) and Diethylene glycol (DEG)
Product Applications: EG is used as a raw material in the manufacturing of polyester fibers, polyethylene terephthalate resins (PET), antifreeze formulations and other industrial products.
Olefins II
Announced in May 2003, Petrochemical Industries Company K.S.C and Dow are working to construct a new ethylene and derivatives complex in Kuwait, referred to as the Olefins II project.
The project builds on the successful business relationship with EQUATE.
Following a groundbreaking ceremony in March 2005, the Olefins II project has been constructed on the site adjacent to EQUATE. EQUATE will manage, operate and maintain the Olefins II facilities.
Formed: 2003
Ownership:
Petrochemical Industries Company of Kuwait 50%;
The Dow Chemical Company 50%
Headquarters Location: Kuwait City, Kuwait
Production Facilities: Shuaba, Kuwait along with EQUATE
Products: Ethylene, Ethylene Oxide, Ethylene Glycol
Ras Lanuf
Ras Lanuf Petrochemical complex is intended to expand and operate the existing petrochemical complex in Libya, which was built in 1980. This site consists of a naphtha cracker, polyethylene production facilities and associated infrastructure.
The enhanced version of the complex on the Mediterranean coast will position the joint venture, a union of the Libyan National Oil Corporation, Dow, and other private investors, for future growth as a world class supplier of polyethylene.
A Heads of Agreement has been signed for establishing and detailing the general terms and conditions of the company.
Once the negotiated terms and other definitive agreements have been finalized, the joint venture will begin the project to enhance the existing complex.
Dow is the first global chemical company to participate in the economic development of the Libyan petrochemical industry.
Formed: 2007
Ownership:
National Oil Corporation: 50%;
The Dow Chemical Company: Less than 50%
Private investors
Headquarters Location: Ras Lanuf, Libya
Production Facilities: An Ethylene plant, two polythethylene plants, associated utilities and a port facility on the Ras Lanuf Harbor
Products: Polyethylene products, HDPE or LLDPE
Ras Tanura Integrated Project
In July 2006, Saudi Aramco selected Dow as its potential partner to engage in exclusive negotiations concerning a joint venture company to construct, own and operate a world-scale chemicals and plastics production complex at Ras Tanura, in Saudi Arabia’s Eastern Province.
In May 2007, a detailed Memorandum of Understanding was signed by Dow and Saudi Aramco, for the construction and operation of a world-scale chemicals and plastics production complex at the Ras Tanura complex in Saudi Arabia. Dow and Saudi Arabia have begun the initial engineering and design study for this project.
Proposed Ownership:
Saudi Aramco 50%;
The Dow Chemical Company 50%
KBR – appointed Project Management Company
Headquarters Location: To be determined
Production Facilities: Kingdom of Saudi Arabia
Products: A broad range of both basic and performance products, including ethylene, propylene, aromatic and chlorine derivatives, polyethylene, ethylene oxide and glycol, propylene oxide and glycol, chlor-alkali, vinyl chloride monomer, polyurethane components, epoxy resins, polycarbonate, amines and glycol ethers.
Joint Venture Fact Sheet (270KB PDF)
White Paper for Joint Venture (1.0MB PDF)
