Date/Time
Date(s) - 23 December 2015
12:00 am
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EQUATE Petrochemical Company, Kuwait’s first international joint venture in this industry, announced in a press statement today that it has finalized its acquisition of 100% ownership in MEGlobal. This transaction has transformed EQUATE into a global leader in the petrochemical sector.
EQUATE President & CEO Mohammad Husain said; “This is an extraordinary day in the proud history of EQUATE and MEGlobal. The addition of MEGlobal positions EQUATE as an industry-leading petrochemical enterprise with an enhanced leadership position in the ethylene glycol (EG) sector in which MEGlobal maintains a 12% market share today. Together we are building a new enterprise that will serve as a foundation for sustainable growth in the petrochemical sector in Kuwait and the industry globally.”
“Since its inception in 1995, EQUATE has been a pioneer in the petrochemical sector. We had consistent growth over the last 20 years and contributed greatly to the local economy and community. As we continue creating value for our shareholders by growing our businesses and further support, invest and create opportunities that will help make a positive difference. This is part of our core corporate values,” concluded Husain.
Currently, EQUATE contributes close to 60% revenue of Kuwait’s non-oil exports which is aligned with the country’s economic strategy of diversification. This acquisition will further strengthen this position and create added -value across varied sectors in the country today.
MEGlobal will provide EQUATE with a major growth opportunity through a new world-scale project in the U.S. Gulf Coast utilizing advantaged shale gas feedstock. In addition, the transaction will bring with it an experienced leadership and operations team, as well as a global network of clients.
The combined entity will benefit from significant economies of scale with a larger and more diversified distribution platform through Kuwait, Germany, Canada and the United States. Furthermore, it will result in an optimized cost structure with multiple points of access to feedstock from sources in North America and the Middle East with improved operational efficiency.
Established in 1995 as Kuwait’s first international joint-venture in this industry, EQUATE Petrochemical Company (EQUATE) embodies its “Partners in Success” slogan through the partnership between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Commencing production in 1997, EQUATE is currently the owner and single-operator of several fully integrated world-class petrochemical units, within the Greater EQUATE joint-venture, that annually produce over 5 million tons of the highest quality grades of Ethylene, Polyethylene (PE), Ethylene Glycol (EG), Polypropylene (PP), Styrene Monomer (SM), Paraxylene (PX), Heavy Aromatics (HA) and Benzene (BZ). The products are marketed throughout the Middle East, Asia, Africa and Europe. Alongside with being a leading industrial organization, EQUATE dedicates its utmost commitment and care to overall sustainability wherever it operates in cooperation with public and private bodies, including employees, the society and customers, in all relevant fields, such as human development, environment, education, health and public awareness. www.equate.com
MEGlobal is a world leader in the manufacture and marketing of mono ethylene glycol and diethylene glycol (EG), and is headquarters in Dubai, UAE. Established in July 2004, MEGlobal currently markets over 2.5 million metric tons of EG per year globally. EG is used as a raw material in the manufacture of polyester fibers (clothing and other textiles), polyethylene terephthalate (PET) resins, antifreeze formulations and other industrial products. MEGlobal is a 50/50 joint venture between Dow and Petrochemical Industries Company (PIC) of Kuwait. www.meglobal.biz