Dow Acquires Polystyrene Joint Venture Shares from Asahi
Singapore - August 08, 2006, The Dow Chemical Company (Dow) and Asahi Kasei Chemicals Corporation (Asahi) today announced the conclusion of an agreement for Dow to acquire Asahi’s shares in Styron Asia Limited in Hong Kong (SAL HK) and for Dow Financial Holdings Singapore Pte Ltd. to acquire Asahi’s shares in SAL Petrochemical (Zhangjiagang) Co., Ltd. in China (SAL ZJG).
Styron Asia Limited is a 50:50 joint venture between Dow and Asahi, with SAL ZJG as the production entity that manufactures STYRON™ Polystyrene Resins and STYRON A-TECH™ Advanced Technology Polystyrene Resins, and SAL HK as the marketing entity. Dow will acquire Asahi’s remaining 50% ownership in SAL HK directly and SAL ZJG indirectly for an undisclosed sum. Dow and Asahi are in the process of applying to the Chinese government for approval to the equity transfer for SAL ZJG, and registering the change of ownership for SAL HK.
SAL HK and SAL ZJG shall be operated in the ordinary course of business to ensure a seamless transition, and every effort will be taken to ensure that ongoing business with SAL HK’s and SAL ZJG’s customers continues to be smoothly conducted.
The change in ownership in SAL HK and SAL ZJG is a mutual agreement between Dow and Asahi to accommodate the evolving strategies of both parent companies who continue to maintain a close working relationship. This move is consistent with Dow’s approach to continually assess our joint ventures to ensure they are supporting our overall business strategy. It is part of a multi-tiered strategy by Dow to revitalize its polystyrene business in Asia, and to position the business for long-term success and value creation in an increasingly competitive market.
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