The Dow Chemical Company (Dow) and Rompetrol Petrochemicals, a member of The Rompetrol Group, announced today an agreement for the manufacture and marketing of low density and high density polyethylene resins (LDPE and HDPE).
Rompetrol Petrochemicals will supply Dow with HDPE (high density polyethylene) and LDPE (low density polyethylene) resins, manufactured according to Dow’s high quality standards and quality assessment and control practices over the following 14 years. Annual output is expected to reach 100,000, and deliveries to Dow in the initial phase of the agreement will total up to 60,000 tons per annum.
“This agreement underscores Dow's commitment to secure low-cost opportunities that will strengthen the company's position in key growth regions around the globe. It provides an effective way for our polyethylene business to develop new market opportunities in Eastern Europe, while better supporting a number of key customers throughout the area,” said Markus Wildi, president of Dow Europe.
“The agreement leverages the strengths and qualities of the two companies. Dow contributes strong market knowledge, understanding of our valued customers’ needs, and world class polyethylene process and product technology. This, combined with Rompetrol’s strategic position in Eastern Europe and commitment to invest in petrochemical markets, will support the growth of our customers, particularly in Eastern Europe,” Markus Wildi said.
Florin Andrei, CEO of Rompetrol Petrochemicals, considers that the partnership sparks the beginning of a major development age that will allow the company to become a key player in the region.
“We’re very eager to commence cooperation with Dow, which offers us the benefit of top quality production standards, and implicitly strengthens our position as a significant supplier to the domestic market and also to markets to which we currently export our polypropylene output,” Florin Andrei stated.
Rompetrol Petrochemicals will receive technical support, feedstock, and technical specifications for polymers from its partner. Furthermore, Dow will provide ethylene (polyethylene production feedstock) supplies to Rompetrol Petrochemicals until the Romanian company will start up its pyrolisis installation.