Dow Chemical 2015 Annual Report Download - page 22

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Distribution
The Performance Materials & Chemicals segment markets its products primarily through the Company's sales force and also
utilizes distributors worldwide.
Joint Ventures
The Performance Materials & Chemicals segment includes a portion of the Company's share of the results of the following
joint ventures:
• EQUATE Petrochemicals Company K.S.C. ("EQUATE") - a Kuwait-based company that manufactures ethylene,
polyethylene and ethylene glycol; owned 42.5 percent by the Company.
• The Kuwait Olefins Company K.S.C. - a Kuwait-based company that manufactures ethylene and ethylene glycol;
owned 42.5 percent by the Company.
• Map Ta Phut Olefins Company Limited - effective ownership is 32.77 percent of which the Company directly
owns 20.27 percent (aligned with Performance Materials & Chemicals) and indirectly owns 12.5 percent through
its equity interest in Siam Polyethylene Company Limited and Siam Synthetic Latex Company Limited (both part
of The SCG-Dow Group and aligned with Performance Plastics). This Thailand-based company manufactures
propylene and ethylene.
• Sadara Chemical Company - a development-stage Saudi Arabian company that will manufacture chlorine,
ethylene and propylene for internal consumption and will produce and sell high-value added chemical products
and performance plastics; owned 35 percent by the Company.
On December 23, 2015, the Company sold its 50 percent ownership interest in MEGlobal, a manufacturer and marketer of
monoethylene glycol, diethylene glycol and polyethylene terephthalate resins headquartered in Dubai, United Arab Emirates, to
EQUATE. MEGlobal was aligned 100 percent with Performance Materials & Chemicals through the date of divestiture. Dow
has retained 42.5 percent ownership stake in MEGlobal through its ownership in EQUATE. The Performance Materials &
Chemicals segment will continue to include a portion of the equity earnings from EQUATE, which will include the results of
MEGlobal.
Divestitures
On January 30, 2015, the Company sold its global Sodium Borohydride business to Vertellus Specialty Materials LLC. On
February 2, 2015, the Company sold ANGUS Chemical Company to Golden Gate Capital. On October 5, 2015, the Company
completed the split-off of its U.S. Gulf Coast Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy
businesses to Olin Corporation in a tax-efficient Reverse Morris Trust transaction. These businesses were reported in the
Performance Materials & Chemicals segment through the date of divestiture.
PERFORMANCE PLASTICS
The Performance Plastics segment is the world’s leading plastics franchise, and is a market-oriented portfolio composed of five
global businesses: Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy
and Hydrocarbons. The segment is advantaged through its low cost position into key feedstocks and broad geographic reach,
with sales in 115 countries and manufacturing facilities located in all geographic areas. It also benefits from Dow’s R&D
expertise to deliver leading-edge technology that provides a competitive benefit to customers in key strategic markets.
Details on Performance Plastics' 2015 sales, by business and geographic area, are as follows:
Dow Elastomers, Dow Electrical and Telecommunications, and Dow Packaging and Specialty Plastics serve high-growth, high-
value sectors where Dow's world-class technology and rich innovation pipeline creates competitive advantages for customers