21 April 2006
Dow Chemical, the US based chemical major, may set up a large petrochemical facility in the Jamnagar SEZ of Reliance, next to the proposed refinery of Reliance Petroleum (RPL). According to unconfirmed media reports, Dow may invest up to Rs5,000 crore in the project.
Reliance had invited global petrochemical companies like Dow, Shell, Exxon Mobil and Mitsubishi Chemical to set up downstream units in the SEZ.
Manufacturing presence in India would offer these companies proximity to the fast growing Asian markets including China and India. They are also assured of feedstock from RPL’s mega-refinery unlike western countries which are struggling from lack of refining capacity.
Dow is the technology vendor to the 9 lakh tonnes per annum polypropylene plant being set up by RPL as part of the refinery complex. RPL would pay $26.5 million for the technology.
The Dow Chemical Company is one of the largest specialty chemicals company in the world, known for its research and product innovation capabilities. The company has an asset base of $46 billion and total revenues for the year 2005 stood at $46.3 billion. The company employs more than 42,000 people globally and has a market cap of $39.5 billion.
Dow ranks 36 in the Fortune 500 list of largest American companies.
In 2001 Dow Chemical took over Union Carbide, the company behind the Bhopal gas tragedy. In March this year, a group of US send this article to a friend based investment funds wrote to Dow Chemical to pay $500 million to the victims of the gas tragedy. The company has refused to accept any liability so far.