Dow awarded $318m more over failed Kuwaiti venture
The award brings the total amount that Dow will receive to $2.48 bln
The International Court of Arbitration has ordered Kuwait's Petrochemical Industries Co.(PIC) to pay the final interest and costs totaling $318 million to Dow Chemical to compensate for the failed K-Dow venture. This is in addition to the partial award of $2.16 billion announced last May – resulting in full damages awarded to Dow equal to $2.48 billion.
“Payment of these damages of nearly $2.5 billion will allow Dow to accelerate its priority uses for cash by further strengthening our balance sheet,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Dow and Kuwait share a long history and strong partnership, and this award ruling brings suitable closure to the arbitration process. The Dow team fully expects, and we are resolved to ensure, that PIC honors its contractual commitments in a timely manner.”
In late 2008, Dow planned a $17.4 billion joint venture with PIC to form a multi-national company, K-Dow for producing plastics. PIC pulled out of the deal in December 2008 owing to hostility from members of the Kuwaiti parliament. An arbitrator ruled last year that PIC was at fault and owed Dow Chemical $2.16 billion, plus interest and costs.