Polystyrene joint venture proposed

The Dow Chemical Company and Chevron Phillips Chemical Company have signed an MoU to form 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, after which the parties expect the transaction to close in the second half of 2007.

Dow and Chevron Phillips Chemical said they expect the 50-50 joint venture to establish the competitive model for an integrated producer of polystyrene in the Americas. The companies plan to share manufacturing, commercial and feedstock resources.

Dow intends to contribute a styrene monomer plant and six polystyrene plants to the venture and Chevron Phillips Chemical plans a styrene monomer plant and a polystyrene plant .