Dow to cut stake in ventures here

(MENAFN- Arab Times) KUWAIT CITY Nov 13 (AFP): Dow Chemical has decided to reduce its stake in two multi-billion dollar petrochemicals joint ventures with Kuwait the US firm and its Kuwaiti partner said on Thursday. 'Dow will reconfigure and reduce its equity base in the MEGlobal and Greater Equate joint ventures' with Kuwait's state-owned Petrochemicals Industries Co (PIC) the US firm said in a statement on its website. PIC said it has been informed by its partner that it intends to reduce its percentage stake inside and outside Kuwait.

It provided no further details. Dow and PIC each hold 42.5 percent stakes in Equate with the rest held by private Kuwaiti firms Boubyan Petrochemical Co and Al-Qurain Petrochemicals. Equate which began operations in 1997 has a total annual production capacity of 5.0 million tonnes mainly of polyethylene ethylene glycol and styrene. MEGlobal headquartered in Dubai manufactures and markets monoethylene glycol and diethylene glycol.

Established in July 2004 MEGlobal currently markets over 2.5 million tonnes a year globally. Dow said the move expected to be finalised in mid-2015 is a purely investment decision. 'While Dow will retain a substantial stake in these long-term partnerships this effort will open opportunities for new investment in these successful and growing enterprises. 'Dow remains committed to maximising the overall value of both MEGlobal and the Greater Equate joint ventures to further enhance their already demonstrated strong value and performance' it said. 'This strategic action allows us to redeploy capital to more strategic purposes' said Andrew Liveris Dow's chairman and chief executive officer. Last year Kuwait paid a $2.2 billion penalty to Dow after unilaterally pulling out of a signed contract for a $17.4 billion joint venture. Kuwaiti lawmakers criticised the deal and set up a commission of inquiry.