Dow Chemical closes EniChem deal

MIDLAND, Mich. (May 14)—Dow Chemical Co. has completed its acquisition of EniChem S.p.A.'s Polyurethanes business aimed at strengthening its European operation and boosting yearly sales by about $500 million. The deal gives Dow Chemical additional capacity in Europe for polyols, toluene diisocyanate, methylene diisocyanate and polyurethane systems. The company picks up about 118,000 metric tons of TDI capacity, 80,000 of MDI capacity and 160,000 tons of polyols capacity. Dow Chemical traded a 50-percent interest in Polimeri Europe, an Italian polyurethane manufacturer picked up when Dow Chemical bought Union Carbide Corp., for EniChem's PU business. Dow Chemical also paid $367 million for the PU operation and will receive $189 million for Polimeri Eupopa from EniChem, making the net purchase price about $178 million.