Economy
10:05 am
Thu May 24, 2012

Dow Chemical gets $2 billion award for canceled Kuwait project

Dow Chemical says an international court has awarded it $2.16 billion in damages from its dispute with Petrochemical Industries Co., a subsidiary of state-owned Kuwait Petroleum Corp.

Dow shares are up 4 percent in trading Thursday before the opening bell.

Midland, Mich.-based Dow, one of the world's largest chemical companies, formed a $17.4 billion joint venture with the Kuwaiti company in 2008 to produce plastics for consumer products, automotive parts and drug processing. But the deal was scrapped later that year by that country's government following lawmaker criticism that could have led to a political crisis in the small oil-rich state.

"This outcome brings resolution and closure to the issue," Andrew Liveris, Dow`s chairman and chief executive officer, said in a statement.  "We remain focused on continuing to move forward with our transformation and profitable business partnerships -- both in Kuwait and around the world."

Dow has Chemical Co. been doing business with Kuwait for nearly 40 years.