Dow acquisition could impact Rohm and Haas partnership with RIL in India

Dow Chemicals’ acquisition of specialty chemical company Rohm and Haas for more than Rs75,000 crore (US$17.4 billion) is likely to impact its partnership with Indias Reliance Industries (RIL) and expansion plans in India worth more than US$100 million. U.S.-based Rohm and Haas had entered into an agreement with RIL in March last year to set up an acrylic-monomer complex in Jamnagar with an investment of more than US$250 million. The proposed facility would manufacture about 200,000 tons of acrylic acid and esters annually for the domestic market, and acrylic acid and derivatives for export, with the help of RIL’s petrochemical complex coming up at Jamnagar. Dow Chemicals is also in talks with RIL to invest in its special economic zone in Jamnagar, Gujarat. But, Dow, which acquired Union Carbide in 2001, is accused of not addressing the key issue of compensation to the victims of the Bhopal tragedy and cleaning up the site. A source close to Dow said that “Initially our growth in India will be by way of joint ventures and partnerships until the Union Carbide case is sorted out.” (July 11, 2008)