Nov 20 2007
Dow Polyurethanes, a business group of The Dow Chemical Company (Dow), announced today that Dow will acquire the remaining shares of Pacific Plastics (Thailand) Limited (PPTL). A joint venture between Dow, Siam Cement Group (SCG) and two other minority partners, PPTL represents ownership of the polyols and polyurethane systems facility located in Map Ta Phut, Thailand. Dow is acquiring the remaining 51 percent ownership in the joint venture directly for an undisclosed sum. Once the transaction is completed, the polyols and polyurethane systems facility will be wholly owned by Dow.
“In line with Dow’s strategy of investing in its downstream Performance businesses, Dow Polyurethanes has been expanding globally through acquisitions and geographic expansions,” said Pat Dawson, president of Dow Polyurethanes. “This action exemplifies our commitment to the Asia Pacific region. The Dow-owned polyols and polyurethane systems facility at Map Ta Phut will enable Dow to accelerate the growth of our Polyols and PU Systems businesses’ capabilities at the site to better supply customers throughout Asia with the quality and service that help them succeed in their industries.”
The acquisition is consistent with Dow's commitment to continually assess the Company’s joint ventures to ensure they support the overall business strategy. Dow has a long-standing successful business relationship with SCG. The two companies signed their first joint venture agreement in 1987, and have since formed a total of five joint venture companies, producing polyols, synthetic latex, polystyrene, styrene monomer and polyethylene at the Map Ta Phut site. Dow’s acquisition of PPTL supports the strategic goals of both joint venture partners and the companies will continue to collaborate on various projects such as the liquids cracker in Thailand announced in October of 2006, which is expected to commence operations in 2010.