An $11 billion joint plastics venture
between Dow Chemical Co (DOW.N) and a unit of Kuwait Petroleum
Corp will be based in Michigan, the two companies said in a
statement on Sunday.
The venture will be named K-Dow Petrochemicals and the
chief executive will be James Fitterling, currently business
group president at Dow's plastics division, the companies said.
Dow's headquarters are in Midland, Michigan. The site of
the new headquarters has yet to be decided but would be
somewhere in the southeast of the U.S. state.
The two teamed up for the 50-50 joint venture in January,
in a deal that will link the Middle East oil producers' vast
energy supplies with Dow's industry-leading market reach.
The joint venture will manufacture and sell chemicals used
in products ranging from plastic bottles, compact disks and
computers to agricultural compounds and have expected sales of
$11 billion at its inception.
Dow's links to the Kuwaiti company go back a decade to the
EQUATE joint venture. The two companies have also joined forces
through their MEGlobal and Equipolymers joint ventures in 2004.
With the deal, Kuwait will increase its reach further down
the chain of products that are derived from its oil and gas.
(Reporting by Simon Webb; editing by )