It looks like I was wrong about the Dow-Kuwait joint venture. I predicted in two blog posts in the past month that, despite the noise coming out of the Middle East, the K-Dow joint venture would likely move forward. But now, as we're reporting on the Plastics News Web site, Kuwait today announced that it will cancel the planned $17.4 billion joint venture with Dow Chemical Co. Apparently the political pressure was too much to overcome, as opponents threatened to scuttle the government of Kuwaiti Prime Minister Sheikh Nasser al-Mohammed al-Sabah. The questions now: what's Dow's next step, and what does this mean for the "asset light" strategy that Chairman and Chief Executive Officer Andrew Liveris has been pushing? What sort of shakeout should we expect next from the global crash in petrochemical demand?
Setback for "asset light?
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