South Korean plastics and chemicals giant LG Chem Ltd. of Seoul has bought out Dow Chemical Co.'s 50 percent stake in a polycarbonate-making joint venture for an undisclosed price.
Dow's half of the LG Dow Polycarbonate Ltd. venture went over to Seoul-based LG on Oct. 1, according to an Oct. 4 Bloomberg News report. The joint venture operates a pair of plants in Yeosu, South Korea, with combined annual capacity of almost 375 million pounds of PC, according to the report.
The joint venture rang up sales of $325 million in 2009. It was founded in 1999 and began production in 2001, making PC under Dow's Calibre trade name.
Dow's share of the venture was set to transfer to private equity firm Bain Capital, which bought Dow's Styron unit including PC for $1.6 billion earlier this year.
Dow spokeswoman Rebecca Bentley said that the sale to LG is consistent with Dow's previously announced divestiture of the Dow polycarbonate business, as part of the Styron division divestiture to Bain Capital Partners.
Dow's LG Dow PC stake was one of the real strong assets of the [Styron] deal because of growth prospects in Asia for automotive and electronic PC usage according to industry analyst Roger Young of Robert Eller Associates Inc. in Akron, Ohio. The sale leaves Styron without an Asian manufacturing base, Young added. Styron also has PC production in Freeport, Texas, and Stade, Germany.
After the transaction closes, LG Dow will operate as LG Polycarbonate Ltd. and will continue to serve existing customers and markets, Bentley said via e-mail.