MIDLAND, Mich. (AP) -- Officials say a joint petrochemicals venture between Dow Chemical Co. and a Kuwaiti company will begin operations by Jan. 1.
Midland-based Dow Chemical and Petrochemical Industries Co. said Monday they have signed the necessary documents to form K-Dow Petrochemicals. They say the total enterprise value of K-Dow is about $17.4 billion.
Dow expects to receive $9 billion in pretax proceeds related to the transaction, including a $1.5 billion special cash distribution from K-Dow.
K-Dow will make plastics for numerous uses, including consumer products, automotive parts and drug processing.
It will be based in the Detroit area and is expected to announce a headquarters site by year's end.