Dow and PIC of Kuwait Continue Progress on Proposed $11B Joint Venture
Midland, MI and Kuwait City, Kuwait - July 2008
The Dow Chemical Company (NYSE: DOW) and Petrochemical Industries Company (PIC) of the State of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation (KPC), continue to make progress on their $11 billion proposed 50:50 joint venture. Today the two companies named James R. Fitterling the chief executive officer of the new market leading global company - K-Dow Petrochemicals (KDP). Dow and PIC also announced the selection of Michigan as the location of the world headquarters for the new joint venture, subject to the approval of state and local incentives and the completion of definitive agreements, customary conditions, regulatory approvals, and transaction close, which is anticipated in late 2008.
James R. Fitterling Named CEO
Fitterling is currently the business group president for Dow Basic Plastics and a member of the Company’s Management Committee and Business Operations Committee. He has held a variety of key leadership positions during his 24-year career with Dow. Fitterling will become CEO when the joint venture begins operations.
“Jim’s vast experience with Dow and the industry, in the basic plastics businesses, several joint ventures, international assignments, and executive leadership roles are the ideal qualifications Dow and PIC sought in a leader for K-Dow Petrochemicals,” said Andrew N. Liveris, Dow chairman and CEO.
Michigan Selected for Headquarters
The city location for the headquarters is still to be determined; however the venture will be located in southeast Michigan, pending final incentive approvals, which offers convenient international airport access as well as a broad range of educational opportunities and culturally diverse communities. The total number of employees located at the headquarters site is expected to expand up to 800 employees over the next several years.
“For decades The Dow Chemical Company has been an important part of Michigan’s economy by creating jobs and investing in our communities,” said Governor Jennifer M. Granholm. “K-Dow Petrochemicals, which will bring hundreds of jobs to our state, would rank in the top half of the Fortune 500 if it was publicly traded, and the fact that it will be headquartered here is good news for Michigan.”
“From PIC’s perspective, we were especially impressed by the welcoming attitude and innovative spirit toward this new global enterprise shown by the state of Michigan,” said Maha Mulla Hussain, Managing Director of PIC. “The selection process was thorough and thoughtful, and Dow and PIC made the decision together based on the location that could best support the JV’s success.”
Liveris also characterized the companies’ joint selection of the headquarters location as “consistent with the positive business environment in the state of Michigan, where Dow has more than 110 years of history.”
“Dow and PIC chose Michigan for the global headquarters based on criteria related to the state and region’s access to international markets, presence of a talented and culturally diverse workforce, and attractive business environment,” said Liveris.
K-Dow Petrochemicals (KDP)
The name K-Dow Petrochemicals (KDP) reflects the combined strengths of the JV partners that together will create a market-leading, global petrochemicals company. Dow’s strengths are its recognized brand and franchise related to product and market leadership -- including its number one position in polyethylene, ethyleneamines and ethanolamines -- as well as technology development and operational expertise. The venture will continue to maintain Dow’s strong commitment to compliance with environmental, health and safety standards.
K stands for Kuwait and represents both Petrochemical Industries Company (PIC) of Kuwait’s feedstock position and commitment to global petrochemicals growth and the position of PIC’s parent company Kuwait Petroleum Corporation (KPC) as one of the world’s top-ten energy/hydrocarbons companies.
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