By John Whitehead
From Plastics & Rubber Weekly
Midland, Michigan - Dow Chemical Co. has confirmed that it will pursue legal action against Kuwait's Petrochemicals Industries Co. (PIC) following Kuwait´s withdrawal from the K-Dow joint venture.
"Pursuing legal options is not a decision we take lightly, especially because of the long standing partnerships we have established in Kuwait over the last decade, but PIC is in breach of contract and we must take action to protect the interests of our company and our shareholders," Dow chairman and chief executive officer Andrew Liveris said in a statement.
"Dow has already been approached by other interested parties about joint venturing with the company for the basic plastics businesses and as a result, has established a formal process to secure a joint venture partner to "accomplish the goals of its asset light strategy," the statement notes.
"Prior to signing the definitive agreement with our Kuwaiti partners about the K-Dow joint venture we had other options and other partners to consider. Some of these discussions were active as recently as November, and we have already been contacted by other interested parties and have begun discussions," Liveris said.
Dow made no mention in the statement of its planned acquisition of Philadelphia-based speciality chemicals maker Rohm and Haas Co. Financial analysts have said recently that the $19 000 million Rohm and Haas deal could be in jeopardy because of the collapse of the K-Dow joint venture.