Dow Chemical (Midland, Michigan / USA; www.dow.com) and Mitsui & Co (Tokyo, Japan; www.mitsui.com) have signed a memorandum of understanding (MOU) to establish a joint platform for the production of biopolymers. The transaction is due to be finalised by the end of this year, following regulatory approval.

Construction of a production facility at Santa Vitoria / Brazil, described by Dow as “the world’s largest integrated facility for biopolymers derived from renewable, sugar-cane derived ethanol,” would also begin this year. No financial details have been disclosed and no start-up date for production named.

Under the terms of the deal, Mitsui would take a 50% equity interest in Dow’s sugar cane-growing operation in Santa Vitoria, Minas Gerais / Brazil. The joint venture would supply the US chemical giant with biomass-based feedstocks to supplement its traditional petrochemical production streams and align with its goal of “developing low-carbon solutions to meet the world's pressing energy and climate change challenges.” Dow said the biopolymers “will be a green alternative and drop-in replacement for high-performance flexible packaging, hygiene and medical applications.”