The joint venture between The Dow Chemical Co. and Chevron Phillips Chemical Co. is expected to realize significant manufacturing, commercial and feedstock synergies between the companies. They will combine assets from their polystyrene and styrene monomer businesses in the Americas.
"This joint venture is what our Asset Light strategy is all about: joining forces with a complementary partner who brings value to Dow through its excellent feedstock position and with whom we can build a stronger regional presence, reduce costs, enhance innovation and deliver a superior service to our customers." said Andrew Liveris, Dow chairman and CEO. The 50-50 joint venture is expected to establish the competitive model for an integrated producer of polystyrene in the Americas said a company statement.
The parties will contribute the following assets to the venture:
Dow intends to contribute a styrene monomer plant (Camacari, Brazil) and six polystyrene plants (Gales Ferry, CT; Ironton, Ohio; Joliet, Illinois; Torrance, Calif.; Cartagena, Colombia; and Guaruja, Brazil).
Chevron Phillips Chemical intends to contribute a styrene monomer plant (St. James, LA) and a polystyrene plant (Marietta, Ohio).
"This is a very competitive business and we look forward to achieving the synergies of this venture so as to expand our opportunities in the Americas and more efficiently meet customer demand," said Ray Wilcox, president and CEO of Chevron Phillips Chemical.
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