Dow sells JV

Dow Chemical’s wholly-owned subsidiary, Union Carbide, is to sell its 50% interest in UOP to Honeywell for $825 million. Honeywell currently owns the remaining 50% interest in UOP.

UOP has been a joint venture between UCC and Honeywell since August 1988. It is an international supplier and licensor of process technology, catalysts, process plants and consulting services to the petroleum refining, petrochemical and gas processing industries.

The company employs about 3,000 people at its facilities in the US, Europe and Asia, and last year had sales of approximately $1.2 billion.

Announcing the sale, Dow Chief Executive Officer, Andrew Liveris, explained that despite the success of the joint venture with Honeywell, UOP is not considered strategic to Dow's future growth.

The transaction, which is subject to regulatory review, is expected to close in the final quarter of 2005.