PIC owned by the state oil company Kuwait Petroleum.

The joint venture will own Dow's ethylene complexes in Fort Saskatchewan, Alberta; Bahia Blanca, Argentina; and Tarragona, Spain.
Other ethylene crackers, such as Dow's Freeport, Texas, site, will supply the partnership with feedstocks under contract.

In 1995, Union Carbide and PIC formed the joint venture Equate with minority partners to produce ethylene, polyethylene, and ethylene glycol.
Dow purchased Union Carbide in 2001 and built on this foundation by launching a similar joint venture, Equate II, which is now under construction in Kuwait.

Equate I 設立：1995 稼動：1997 当初株主：Dow Chemical　（旧ＵＣＣ） 45% 　　　　　　　Petrochemical Industries Co.(PIC) 45% 　　　　　　　Boubyan Petrochemicals 10% 民営化後：Dow Chemical　（旧ＵＣＣ） 42.5% 　　　　　　　Petrochemical Industries Co.(PIC) 42.5% 　　　　　　　Boubyan Petrochemicals 9% 　　　　　　　Qurain Petrochemical 6% 製品：エチレン　　当初 650千トン　増設後 800千トン 　　　　LL/HDPE　　　　450千トン　　　　　　600千トン 　　　　EG　　　　　　　　 300千トン　　　　　　400千トン 　　　　PP 　　　　　　　　100千トン　　　　　　120千トン 　　　　　（PIC資産、Equateが製造受託）

Equate II 社名：Kuwait Olefins Company 株主：Dow Chemical　 42.5% 　　 　Petrochemical Industries Co.(PIC) 42.5% 　　　 Boubyan Petrochemicals & NＰＳ 9% 　　　 Qurain Petrochemical 6% 製品： Ethylene Unit 850 KTA Polyethylene Expansion 300 KTA (Additional) Ethylene Glycol 600 KTA

In 2004, Dow and PIC formed the global ethylene glycol joint venture MEGlobal and the polyethylene terephthalate partnership Equipolymers. Like the planned petrochemical joint venture, these ventures were formed through PIC's purchase of a share in established Dow businesses. Taken together, all the Dow/PIC partnerships are expected to generate about $14 billion in revenues.

---

Liveris said he wants to focus the company's remaining businesses - such as crop protection, insulation, water treatment, and advanced materials - on societal "megatrends" such as human health, energy, infrastructure and transportation, and electronics and communications.

Liveris referred to the megatrend areas as his company's "hunting grounds." And Dow will have $9.5 billion of cash from PIC to continue what it calls its transformation. Liveris adds, "We are not averse to any deal, no matter what the size."

On that point, one stock analyst, BB&T Capital Markets' Frank Mitsch, asked Liveris whether Dow was already planning a large acquisition. "The transformation agenda will require acquisitions," the CEO responded. "Stay tuned," he later added. "The Dow Chemical Company ain't done yet."

--------------

Dow Chemical Investor Meeting

Webcast from New York City, Thursday, December 13, 2007
http://files.shareholder.com/downloads/GOPR/206276822x0x151345/faef9490-5e17-4d44-b746-a47426a8f28e/FINAL%20Dow%20PIC%20Joint%20Venture.pdf

Building the Dow of Tomorrow
Andrew N. Liveris

A World-Class Petrochemicals Company
Scope
　Polyethylene
　Polypropylene
　Polycarbonate
　Ethyleneamines and ethanolamines
　Related technologies
　Fully dedicated hydrocarbon assets
　　Fort Saskatchewan, Canada (cracker)
　　Bahia Blanca, Argentina (cracker)
　　Tarragona, Spain (cracker and octene manufacturing facility)
　Ethylene supply agreements from Dow’s other crackers

Creating a Polyolefins Leader
　No. 1 industry leader
　Advantaged feedstocks for growth
　Global franchise
　Unparalleled technology, R&D
　History of operational excellence
　Strong financial position
　Desire - and capability - to grow
　$10.8 billion in revenue - Fortune 250 equivalent

The New Enterprise　A World-Class Competitive Petrochemical Giant
(If combined with EQUATE / MEGlobal / Equipolymers)
　$14B in revenue
　14 sites - 6,300 employees
　Broad supplier of plastics (PE / PP / PC / PET) - World’s largest polyolefins producer
　World’s largest EO / EG / EO derivatives company

Performance Portfolio - Market Trends
　Four mega-trends are shaping the world for Dow and our customers
　Dow has unique capabilities to capitalize on these trends and provide unique solutions
　　Global footprint
　　Science and technology
　　Portfolio breadth and depth

Extend Geographic Growth
　R&D and IT centers in China 　Epoxy in China　Glycol Ethers and Latex in China　TDI in Brazil　
　Ag seeds facilities in Brazil (3 cities)　Latex, PU Systems in Brazil　R&D center in India　
　Gazprom discussions in Russia　National Oil Company in Libya　Methane-to-Chemicals research in China
　Manufacturing & Engineering in India 　Support Services in India　Dow Automotive in Dow Central Germany
　Styrofoam in Russia　PU Systems in Russia　Dow Izolan in Russia
　Zhejiang Omex Environmental Engineering in China　Rompetrol Petrochemicals agreement in Romania
　Liquid crackers in Thailand

　Dow’s annual revenue growth rate in emerging economies hasbeen twicethe growth rate in established regions.

Actively Manage Portfolio
Since beginning of 2003
　92 Plants shutdown or announced
　42 Sites exited or announced
　38 Businesses divested

Accelerate Technology & Innovation
　New Product Sales = 33% of total
　Patent applications have doubled in the last five years
　　551 in 2002 vs. ~1,100 in 2007
　Project pipeline has doubled in last 10 years
　　~$5B in 1997 vs. ~$10B today
　Elite global talent pool working on >600 R&D projects
　　Potential EBIT of $2B by 2011

　　Ranked as one of Top 10 R&D companies 　R&D Magazine

2008/12/28 Dow 　　　　関連情報

Dow Chemical Receives Notification of Kuwait Decision to Cancel K-Dow Partnership

Today, The Dow Chemical Company has been verbally informed by our partners at the Kuwait Petroleum Corporation (KPC) and Petrochemicals Industries Company (PIC) about a decision made by the Kuwait Supreme Petroleum Council (SPC), to reverse its prior approval of the agreement between Dow and PIC to enter into K-Dow Petrochemicals, a planned 50-50 joint venture company.  The partners have informed us that there will be official written notification of the decision within the next few days.

Dow is extremely disappointed with the decision by the Kuwait Government, and is in the process of evaluating its options pursuant to the Joint Venture Formation Agreement. While disappointed in this outcome, Dow remains committed to its Middle East Strategy. 

最高石油評議会

クウェイトの石油政策は「最高石油評議会 (Supreme Petroleum Council)」によって決定される。同評議会は、サバーハ　アル・アハマド　アル・サバーハ第１副首相兼外務大臣を議長とし、石油大臣をはじめとする 関係閣僚、中央銀行総裁および民間の代表者達から構成されており、石油政策に関する最高責任を有している。年に４回以上開催される。

2009/1/6 Dow　 　　　ブログ

Dow Chemical Confirms Commitment to Transformational Corporate Strategy
Will Pursue Legal and Other Options on Kuwait Deal; Accelerates Discussions around New Partnerships; Reiterates Commitment to Strong Investment Grade Rating

The Dow Chemical Company today announced a wide range of legal, operational and financial actions that will keep the Company on track to fulfill the transformational corporate strategy Dow has pursued since 2005.

Dow to Pursue Legal and Other Options to Fulfill Rights under Kuwait Agreement

Beyond K-Dow: New Partnerships, New Opportunities

Remaining Responsive to a Volatile Global Economic Environment

Commitment to Financial Discipline and Maintaining Strong Investment Grade Credit Ratings

Commitment to Dow Shareholders

May 24, 2012  Dow 

Dow Announces $2.16 Billion Award in K-Dow Arbitration

The International Court of Arbitration of the International Chamber of Commerce (the “ICC”) this morning released its findings in the arbitration case between The Dow Chemical Company and Petrochemical Industries Company of Kuwait (PIC) relating to the K-Dow transaction.

The ICC award holds that PIC was liable, and awards damages to Dow of $2.16 billion, not including interest and costs. Dow and PIC mutually agreed to resolve their contractual disputes through arbitration before the ICC, which is comprised of preeminent legal experts with experience in high-value commercial litigation. The award is final and binding.

“This outcome brings resolution and closure to the issue,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. "We remain focused on continuing to move forward with our transformation and profitable business partnerships – both in Kuwait and around the world.”

Dow has been doing business with Kuwait for nearly 40 years. The Company's partnership with Kuwait, which includes several industry-leading joint ventures, remains strong and will continue to benefit both parties. Counsel for Dow was Shearman and Sterling.

ダウは12月13日、クウェート国営石化会社 Petrochemical Industries Company (PIC) との間でグローバルな石化JV（50/50）を設立すると発表した。

JVは米国に本拠を置き、PE、PP、PC、エチレンアミン、エタノールアミンを製造販売する。売上高は110億ドル以上で、従業員は世界で5,000人。

同社はクウェートのPICとの合弁会社 K-Dow Petrochemicals 設立により、事業売却額マイナス出資で75億ドル、配当15億ドルで、合計90億ドル（税引後では70億ドル）を受け取ることとなっていた。

2007/12/14　速報　ダウとクウェートのPIC、グローバル石化JVを設立　　

ダウ は2008年7月10日、 188億ドルでRohm and Haas (R&H)を買収する契約を締結したと発表した。
現金153億ドルで全株式を買収し、R&Hの35億ドルの借入金を引き継ぐ。

2008/7/11 速報　Dow Chemical、Rohm and Haas を買収

2008年の12月27日までは、ダウの変身戦略が成功し、価格変動の影響を受ける石油化学をAsset-light 方式で全てＪＶ化するとともに、Rohm and Haas 買収でスペシャルティ分野の強化が出来る筈であった。

Dow はR&H 買収資金の188億ドルを、つなぎ融資 130億ドル、Warren Buffett のBerkshire Hathaway Inc. からの投資 30億ドル、Kuwait Investment authorirty からの投資10億ドルで賄うことにしており、PICへの売却資金でつなぎ融資の一部を返済する予定であった。

しかし、2009年1月1日のスタートを目前にして、2008年12月28日、K-Dow Petrochemicals が破談となり、この金が入らなくなった。

2008/12/29　ダウとクウェートの石油化学合弁、一転破談に

1月23日、ダウはR&H との統合でFTCの承認を得たと発表した。ECは既に1月8日に承認しており、買収の全ての条件が満たされた。

2009/1/26　FTC、Dow と Rohm and Haas の統合を条件付で承認

契約ではすべての条件が満たされた2日後に買収を実行することとなっており、1月27日が期限となる。

しかし、DowはR&Hに対して27日に買収を実施しない旨伝えた。

つなぎ融資は1年間の契約のため、 K-Dow 破談により、このまま買収を行えば資金繰りが危うくなるとして、格付会社が投資基準以下への格下げを行うことを明言しており、格付を投資適格にとどめることが必須であるとするダウとしては資金繰りの目処をつけるまでは買収を行えない状況に陥っていた。

R&Hは1月26日、契約の履行を求め、Delaware州の裁判所にDow を訴えた。この裁判は3月9日と決まった。

そして、裁判の始まる当日、ダウはR&H 及びその大株主との間で、これまでと異なる条件で4月1日までに買収を行うことで合意した。

2009/3/10 　ダウ、Rohm & Haas 買収で合意　

当初発表の1株 $78 でのR&H株式買収（153億ドル）のうち、$63 （124億ドル）は現金で支払い、残りの$15（29億ドル） は優先株で渡す。

R&Hの2大株主（ヘッジファンドのPaulson & Co. Inc.とHaas Family Trusts ）はダウの出す永久優先株25億ドルを購入、更に、そのうちのHaas Family Trusts はダウのオプションでダウの株式に5億ドル投資する。
（ダウはオプションを行使し、Haas Family Trusts に追加の5億ドルの投資をしてもらうこととなった）

ダウはつなぎ融資の条件変更に成功した。
　　当初契約　　130億ドル　2010年4月まで
　　改正　　　　　合計125億ドル、うち45億ドルは2010年4月、80億ドルは2011年4月まで（1年延長）

このほか、Berkshire Hathaway Inc. から30億ドル、Kuwait Investment authorirty から10億ドルは従来どおりとなっている。

また、ダウは史上初の減配を行い、年間10億ドルの資金を節約した。
　　　2009/2/23　Dow Chemical、史上初の減配

今回のMorton International の売却額は16.75億ドルで、当局の承認などを経て、年央に完了する見込み。

ダウは上記の処理を通じ、つなぎ融資の額を減らすとともに、融資期限の延長により、その間に有利な事業売却を検討できることとなった。

しかし、化学業界の不振はしばらく続くと見られており、同社の将来の資金繰りに対する懸念は依然収まっていない。

Standard & Poor's は4月1日、ダウの格付けをBBBからBBB-（ジャンクボンドの１ランクだけ上）に引き下げた。

Moody's も4月22日、Baa3 （ジャンクボンドの１ランクだけ上）に引き下げ、"negative outlook”（否定的な見方）とした。
これは、12〜18ヶ月内に更に引き下げる可能性があるという意味。

ダウは2009年4月1日、Rohm & Haas（R&H）の買収を完了したと発表した。

• R&H子会社のMorton Salt 売却（17億ドル、2009年下期完了）
• 塩化カルシウム事業のOccidental Petroleumへの売却（210百万ドル）
• Total とのJVのTotal Raffinaderij Nederland N.V. のTotal への売却（725百万ドル、2009年下期完了）
• 60億ドルの新規長期ローン
• 22.5億ドルの増資
• 30億ドルの永久優先株の回収
• マレーシアのOptimal 売却　660百万ドル
• Powder Coatings 事業をAkzo Nobel に売却
• 投資会社Bain Capital Partnersへスタイロン事業売却　16.3億ドル

Aug 28, 2012 Reuters

Kuwait company to pay compensation to Dow - paper

Tue  Kuwait's state-run Petrochemical Industries Co. (PIC) said it would make an initial compensation payment to Dow Chemical Co after an arbitrator ruled it must pay $2.16 billion to the U.S. group, Bahrain's Akhbar Al Khaleej newspaper reported on Tuesday.

The International Chamber of Commerce's International Court ruled in May that the Kuwaiti chemical company should pay the sum for wrongly cancelling a planned plastics joint venture in 2008.

Dow's law firm Shearman and Sterling LLP said at the time that it was one of the largest arbitration awards ever made and that the court's decision was final. PIC is a unit of state-run Kuwait Petroleum Corp.

PIC's managing director Maha Mulla Hussain has sent a letter to oil minister Hani Hussein to request approval for the company to make a first payment of 260 million Kuwaiti dinars ($921 million) the newspaper reported citing unnamed sources.

The sources said PIC's Hussain had asked the oil minister to place the item on the agenda for the company's board meeting next Tuesday for approval.

PIC was not immediately reachable for comment. If the report is confirmed, it would be the first time PIC has said it would pay compensation to Dow.

Kuwait pulled out of the $17.4 billion "K-Dow" joint venture with the U.S. company as the global economy sunk into a deep recession nearly four years ago.

March 04, 2013 Dow

Dow Announces Closure of Proceedings in K-Dow Arbitration     Full Award Totals $2.48 Billion

The International Court of Arbitration of the International Chamber of Commerce (the “ICC”) today released the final award amount, representing interest and costs, in the arbitration case between The Dow Chemical Company and Petrochemical Industries Company of Kuwait (PIC) related to the K-Dow transaction.

The final interest and costs awarded to Dow totals $318 million, as of today, and is in addition to the partial award of $2.16 billion announced last May – resulting in full damages awarded to Dow equal to $2.48 billion. This is the last step in the disciplined arbitration process, bringing the process to a close. Both awards (partial and final) are binding and non-appealable.

“Payment of these damages of nearly $2.5 billion will allow Dow to accelerate its priority uses for cash by further strengthening our balance sheet,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Dow and Kuwait share a long history and strong partnership, and this award ruling brings suitable closure to the arbitration process. The Dow team fully expects, and we are resolved to ensure, that PIC honors its contractual commitments in a timely manner.”

The total award amount is subject to continuing interest until Dow receives payment.