Dow Chemical Co (European HQ: Bachtobelstr. 3, CH-8810 Horgen), has outlined its concept for the new olefins/polyolefins complex to be set up in eastern Germany through a merger of Buna GmbH (D-06259 Schkopau), Leuna-Werke (D-06236 Leuna) and Sächsische Olefinwerke GmbH (D-04561 Böhlen – see Plasteurope.com No 9501). A contract was signed with the Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BVS), successor organisation to the Treuhandanstalt, on 4 April in Berlin, calling for Dow to take over 80% of the new company, to be called BSL Olefinverbund GmbH. The German government will hold 20% until the end of the decade and will foot the bill for three-quarters of the DM 4bn restructuring cost, as well as absorbing losses of existing companies and startup losses of the new olefins complex. All economic responsibility for operations will transfer to Dow on 1 June.

The US group has guaranteed to preserve or create at least 3,000 jobs in its own company or related operations and has said it will invest an additional DM 1 bn in projects after the year 2000. According to Dow Europe vice president Elmar Deutsch, the eastern German site will be dedicated to plastics and fully integrated – from hydrocarbons through polymer production, compounding and recycling. Dow's partnership concept foresees operating many of the plants in joint ventures or strategic alliances. "Major multinational companies," as well as some US customers of Dow, are interested in becoming involved in eastern Germany, as a springboard to eastern Europe, said Eddie Miller, vice president for hydrocarbons & energy/ strategic planning.

Some existing polymers plants are to be upgraded and/or expanded, while two new industrial-scale plants are to be built. Dow will enter the European market for linear low density polyethylene (LLDPE) with a 210,000 t/y plant, to go onstream at Leuna in mid to late 1997 and a 200,000 t/y polypropylene plant – its first – to go onstream in the second quarter of 1998. Leuna's 145,000 t/y LDPE plant will be revamped for safety reasons. Capacities at Buna for vinyl chloride monomer (VCM) are to be widened to 330,000 t/y, PVC capacities nearly tripled, from 125,000 t/y to 330,000 t/y "in cooperation with an industrial partner."

Dow Europe vice president for polyolefins and elastomers, Romeo Kreinberg, said the US group is convinced that PVC has a bright future in central and eastern Europe, particularly in the building sector. Plans also are to retrofit Buna's 120,000 t/y SBR rubber capacities and possibly expand production, if the right partner can be found. Kreinberg said the rubber business will be a good fit with Dow's elastomer specialities. Negotiations with a Belgian group about investing in films recycling are said to be at an advanced stage. Finally, Dow plans to make the eastern German site a centre for polymer research and development.

READER SERVICE: Texts from Dow/BVS press conference, including speeches by Elmar Deutsch and William S. Stavropoulos, Dow Chemical Co president and chief operating officer (English): PIE-No. 37526 – Information sheets "Historical Development" of the eastern German complex: PIE-No. 37527.