Dow wins $2bn in damages from failed Kuwait JV
The International Chamber of Commerce (ICC) on Thursday found the Petrochemical Industries Company of Kuwait (PIC) liable in the arbitration case relating to the 2008 collapse of the planned K-Dow venture.
The International Court of Arbitration awarded damages to Dow of $2.16 billion, not including interest and costs, the company said.
Dow and PIC said they mutually agreed to resolve their contractual disputes through arbitration before the ICC, which is comprised of preeminent legal experts with experience in high-value commercial litigation.
The award is final and binding.
“This outcome brings resolution and closure to the issue,” said Andrew N. Liveris, Dow’s CEO. "We remain focused on continuing to move forward with our transformation and profitable business partnerships - both in Kuwait and around the world.”
Kuwait ruled in December 2008, at the peak of the global recession, that PIC should withdraw from the planned olefins and polyethylene joint venture.
Dow noted that it has done business with Kuwait for nearly 40 years.
The company's partnership with Kuwait, which includes several significant joint ventures, remains strong and will continue to benefit both parties, the company said.
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