Dow to get US$2.16 billion
 from cancelled plastics JV with PIC

The International Court of the International Chamber of Commerce has ruled that Kuwait’s state-run chemical company, Petrochemical Industries (PIC), must pay Dow Chemical Co. US$2.16 billion for wrongly cancelling a planned plastics joint venture in 2008. According to Dow’s law firm, Shearman and Sterling LLP, the arbitrator’s ruling against Kuwait is final and binding and is regarded as one of the largest-ever arbitration awards. In December 2008, as the global economy sunk into recession, PIC, a unit of Kuwait Petroleum Corporation, pulled out of a planned US$17.4 billion “K-Dow” petrochemical joint venture, triggering charges from Dow. The failure of the K-Dow venture deprived Dow of a US$9 billion payment during the global financial crisis which nearly derailed its 2009 purchase of Rohm & Haas Co. As Dow struggled to complete the Rohm & Haas deal, it had to cut its dividend by 64% in February 2009, the first reduction in the company’s history. “This outcome brings resolution and closure to the issue,” Dow‘s chairman and chief executive officer, Andrew Liveris, said in a statement. “We remain focused on continuing to move forward with our transformation and profitable business partnerships – both in Kuwait and around the world.” Dow and PIC currently operate four other joint ventures: ME Global, EQUATE, Kuwait Olefins Co and Kuwait Styrene Co. (May 24, 2012)