Dow, Mitsui finalize Brazil biopolymers joint venture
Dow Chemical and Japan-based Mitsui & Co. have secured all necessary governmental regulatory approvals to complete the formation of their previously-announced 50-50 joint venture for biopolymers in Brazil.
The deal makes Mitsui a 50% equity interest partner in Dow’s operation in Santa Vitória, Minas Gerais, Brazil.
The initial scope of the joint venture includes production of sugar cane-derived ethanol for use as a renewable feedstock source, bringing new, biomass-based feedstocks to Dow while diversifying raw material streams from traditional fossil fuels.
The close of this transaction follows Dow’s July 19 announcement of plans to form the new joint venture and of the execution of a Memorandum of Understanding (MoU) with Mitsui aimed at providing innovative and sustainable product solutions for global flexible packaging, hygiene and medical applications.
This represents the world’s largest biopolymers play and Dow’s largest investment in Brazil, a country in which Dow has operated successfully for more than 50 years.
“The formation of this joint venture marks a historic next step in our drive to bring world-leading technology and sustainable solutions to one of the fastest-growing regions of the world,” said Andrew Liveris, Dow’s CEO.
“This move advances Dow’s strategy and demonstrates our unwavering commitment to invest for growth in high-value, innovation-rich sectors through strategic partnerships," he added.
Engineering and equipment fabrication for a new sugarcane-to-ethanol production facility in Santa Vitória accelerated in the third quarter of 2011 and is proceeding according to schedule, with operations expected to commence in the second quarter of 2013.
Dow and Mitsui have a positive history of partnership, having also formed a joint venture on the US Gulf coast to build a world-scale chlor-alkali plant, driving integration advantage for Dow’s downstream businesses and customers.
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