Thai PTT Plc expresses interest in Dow's SE Asian assets

06-Apr-09

As part of Dow's restructuring plans, its joint ventures in Thailand with Siam Cement Group (Dow-SCG Group) and in Malaysia with Petronas (Optimal Group) could be divested. Thai oil and gas giant PTT Plc is reported to have shown interest in Dow Chemicals' Southeast Asian assets that could be for sale as per ICIS. However, Dow has not formally offered the stake to PTT that is 36% owned affiliate IRPC. Dow has yet to identify the olefins and derivatives businesses in the region that would be divested to raise US$4.3 bln partly to refinance its debts as it was targeting to retire a US$12.5bln bridge loan by the end of the year. The Dow-SCG joint venture has 4 ongoing projects, including a 900,000 tpa cracker and a 390,000 tpa propylene oxide (PO) unit that would employ Dow and BASF's proprietary hydrogen peroxide-to-propylene oxide (HPPO) process technology. The four other JV companies produce styrene monomer, polystyrene, latex as well as polyethylene in the industrial estate of Map Ta Phut.