Dow Chemical announced today that it is teaming up with Kuwait Petro’s Petrochemical Industries Company (aka PIC) to market and manufacture polyethylene and polypropylene products (just fancy terms for plastic). The new joint venture will leverage PIC’s “feedstock” position and strength in the energy / hydrocarbon space.
So, what does that mean? In a nutshell: plastic comes from petroleum - and you have a clear leader in the plastics industry (Dow) and a strong petroleum player teaming up to form an $11 billion dollar business. It just makes sense, especially given the current level of oil prices.
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