The Dow Chemical Company (Midland, Mich.; www.dow.com) has signed a definitive agreement with ExxonMobil Chemical Co. (Houston; www.exxonmobilchemical.com) regarding an ownership restructure of Univation Technologies, LLC. Currently a 50/50 joint venture (JV), Univation Technologies is the licensor of Unipol Polyethylene (PE) Process Technology and the leader in the development, manufacture and sales of PE catalysts for the Unipol PE Process – highly differentiated market-aligned solutions. This transaction will result in Univation Technologies becoming a wholly-owned subsidiary of Dow. A valuable, high-margin business, Univation Technologies will enhance Dow’s industry-leading Performance Plastics franchise – further strengthening its leadership position in this high-demand technology.
Further, the Company is working rigorously to rationalize its position in joint ventures that – while valuable – no longer align with Dow’s strategy. More details are forthcoming by year-end 2014. Commenting on today’s announcements, Dow’s chairman and chief executive officer Andrew N. Liveris said, “Dow’s strategy of being low cost, integrated in key products and adding value through technology in its markets, all the while applying a best owner mindset to our portfolio, is on display with these updates and announcements.”
Last October, Dow sold its Unipol polypropylene business to W.R. Grace for $500 million.