Dow Chemical issues statement on joint venture agreement with PIC of Kuwait

Negotiations between the Dow Chemical Company and Petrochemical Industries Company (PIC) began in December 2007 and the transaction has proceeded through many regulatory requirements in Kuwait and in the European Union and the United States culminating in the signing of a definitive agreement signed by both parties on December 1, 2008.

PIC and Kuwait Petroleum Company have followed all required approvals and disclosures within Kuwait as required by law, including reviews with the Oil Ministry, Supreme Petroleum Council, KPC Board of Directors and PIC Board of Directors.

Andrew Liveris, Chairman and CEO of The Dow Chemical Company, said:

"Since the early 1990s we have worked together with Kuwait to establish four joint ventures, each of which has created economic development and prosperity and established the State of Kuwait as one of the leading petrochemical producers in the world."

"In recent weeks there has been much discussion and debate about whether a fifth partnership to establish a new joint Kuwaiti-American company — K-Dow Petrochemicals — is in the long-term interest of the people of Kuwait," Liveris continued.

He pointed out, "Kuwait, through Petrochemical Industries Company, will become a major player in the global petrochemicals industry, through K-Dow. K-Dow will be the largest polyethylene producer in the world and if it were a listed company it would enter the Fortune 200 list overnight."

"The venture is slated to expand Kuwait's influence around the globe -- beyond the oil industry, into the downstream industries of petrochemicals on a global scale. K-Dow will contribute to the development of the Kuwaiti economy by continuing the diversification and development of Kuwait's downstream sector. Downstream industries are more job-intensive, thereby creating more employment opportunities for people," said Liveris, who continued, "K-Dow will create new employment opportunities around the world for Kuwaitis and enable the transfer of knowledge and training to Kuwaitis for long-term success. Kuwaitis who join the new company will have the chance to gain broad global experience -- working with K-Dow customers and other partners in Asia, Europe, Latin America and North America."