Dec 17 2010
The Dow Chemical Company (NYSE: DOW) announced today that Dow and Mitsui & Co., Ltd., of Tokyo, Japan (“Mitsui”) have completed the formation of a previously announced 50:50 manufacturing joint venture to construct, own and operate a new membrane chlor-alkali facility located at Dow’s Freeport, Texas, integrated manufacturing complex.
The companies also announced their appointments to the joint venture management team.
Named Dow-Mitsui Chlor-Alkali LLC, this landmark joint venture combines the strengths of two global companies to build a world-scale chlor-alkali plant on the U.S. Gulf Coast that will drive integration advantage for downstream businesses and customers. Dow will operate and maintain the new facility under contract to the joint venture.
"Completing the formation of Dow-Mitsui Chlor-Alkali LLC marks another key milestone in Dow’s strategic transformation and underscores our commitment to the Company’s long-term earnings profile," said Carol Williams, president, Dow Chemicals & Energy Division. "By enabling our world-class Basic Chemicals franchise to supply downstream performance businesses at lower cost and with less capital, this partnership bolsters our integration strength while liberating capital for investment in businesses that are technology- and customer-driven with higher, more consistent earnings."
Dow’s share of the chlorine produced by Dow-Mitsui Chlor-Alkali LLC will serve the growing feedstock needs of the Company’s performance and market-driven businesses with cost-advantaged chlorine supply. Dow will market the caustic soda on behalf of the joint venture. Mitsui’s share of the chlorine produced by the joint venture will be converted to ethylene dichloride (EDC) by Dow for Mitsui’s use. Mitsui will market the EDC world-wide.
The new chlor-alkali facility is expected to begin operations in mid-2013, and will have a capacity of approximately 800 kilotons per year. The new plant will create approximately 50 long-term jobs at the Freeport, Texas, location, as well as approximately 500 construction jobs.
As part of the closing transaction, Dow and Mitsui executives named the joint venture’s management team. The Dow-Mitsui Chlor-Alkali LLC Management Team is comprised of:
- Todd A. Prey, Chief Executive Officer (previously Global Business Director, Dow Automotive Systems)
- Koichiro Tago, Chief Financial Officer (previously Investment Management Department, Chlor-Alkali Division, Mitsui)
- Kyle Shelton, Manufacturing Director (previously Production Leader, Chlorine 5, Texas Operations, Dow)
- Kenta Morii, Supply Chain Director (previously Investment Management Department, Chlor-Alkali Division, Mitsui)