The Dow Chemical Company and BP Chemicals announced they are working together to develop and make available for licensing a combination of BP's "Innovene" gas phase polyethylene process and "Insite" catalyst developed by Dow. This combined technology will deliver high performance process, products and related catalysts to polyethylene producers. The two companies began joint development of "Insite" constrained geometry catalyst in the "Innovene" process in the second half of 1995 and have successfully demonstrated the capability to produce high performance polymers from a gas phase process with metallocene catalysts. The technology has the potential to produce products with superior processability, impact strength, heat seal and optical properties made possible by "Insite" catalyst, coupled with the economic benefits of "Innovene" technology.

"The powerful combination of world-leading technologies will fulfil our vision of leadership in technology for licensing by meeting the market demands for a full range of advantaged commodity products with superior economics from a single gas phase reactor," said Brain Sanderson, Chief Executive Officer BP chemicals. "It will prove extremely attractive to both existing and future "Innovene" lincenses, giving them access to new markets and the ability to improve their competitiveness."

Said Bill Stavropoulos, Chief Executive Officer, Dow Chemical Company: "We are pleased to take a leadership role in developing this combined technology. The revolutionary capabilities of "Insite" technology, combined with the "Innovene" process, will greatly expand the options and opportunities available to polyethylene producers."

The BP Chemicals Licensing Business will continue to offer its complete range of technologies and will discuss the availability of this new technology with current and future customers. In the meantime, Dow and BP are developing the appropriate business structure to commercialise the combined technology. Both BP and Dow will maintain independent polymer manufacturing, marketing and research activities.