06.05.2014 • NewsDede WillamsDow ChemicalIdemitsu Kosan

Idemitsu Kosan and Mitsui Cancel U.S. Alpha Olefins Project

Korea's Idemitsu Kosan and Japanese partner Mitsui have canceled preliminary plans for a 50:50 linear alpha olefins joint venture in the U.S., effectively pulling the rug from underneath Dow Chemical.

No reason was given for cancellation of the project announced in March 2013.

At the time, the two Asian petrochemical producers said they were studying a project to build a 330,000 t/y LAO plant to take advantage of low cost ethylene feedstock at Dow's Freeport, Texas site by 2016, with Dow providing long-term supply from its Gulf Coast grid.

Despite the termination, Dow said its "strategic growth investments on the Gulf Coast remain on track," adding that it is evaluating several high-return, alternative uses for the surplus ethylene.

The U.S. chemical group said it will continue to access its existing supply network of linear alpha olefins.

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