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In this Edition May 2012 |
LEAD FEATURE |
COMPANY NEWS |
MATERIALS NEWS |
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EXHIBITION NEWS |
INJECTION MOULDING ASIA |
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 ELECTRONIC ISSUE |
PRA June-July 2012 Electronic Issue Now Available |
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Company News
Dow wins suit
T
he International Court of Arbitration in Paris has decided that Kuwait's Petrochemical Industries (PIC) must pay US firm Dow Chemical for backing out of the K-Dow deal. Dow will be awarded US$2.16 billion, which has not been factored yet into its current finances. According to Dow this will in the end enhance its financial stability.In 2008, the state-owned PIC had planned to buy half of Dow's PE, PP and PC plastic businesses as well as related assets for about US$8.5 billion. But the economic recession that hit global markets during 2008 reduced the value of the assets that Dow was trying to sell. Given the global economic downturn, Kuwaiti lawmakers were able to convince government officials to call the deal off.
Since that point, major North American natural gas discoveries have increased the value and profitability of Dow's PE assets. The firm later sold its PP business to Braskem.