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Dow and Chevron Phillips Chemical Announce Plans to Form Styrenics Joint Venture in the Americas

12 Apr 2007 - The Dow Chemical Company and Chevron Phillips Chemical Company LP have signed a non-binding Memorandum of Understanding relating to the formation of a joint venture involving assets from their polystyrene and styrene monomer businesses in the Americas. The new venture is subject to customary regulatory review, due diligence, completion of definitive agreements, and corporate and other approvals. Upon the necessary approvals, the parties would expect the transaction to close in the second half of 2007.
 
The 50-50 joint venture is expected to establish the competitive model for an integrated producer of polystyrene in the Americas. Subject to due diligence, the parties intend to contribute the following assets to the venture. Dow intends to contribute: a styrene monomer plant (Camacari, Brazil) and six polystyrene plants (Gales Ferry, Connecticut; Ironton, Ohio; Joliet, Illinois; Torrance, California; Cartagena, Colombia; and Guaruja, Brazil). Chevron Phillips Chemical intends to contribute a styrene monomer plant (St. James, Louisiana) and a polystyrene plant (Marietta, Ohio).