Dow Chemical's official takeover of an 80% stake in eastern German polyolefins producer Buna Sow Leuna Olefinverbund GmbH (BSL, D-06258 Schkopau) from the privatisation agency for eastern Germany, BvS, was sealed on 1 September. The group will acquire the remaining 20% in June 2000. At a press briefing in Halle, William S. Stavropoulous, Dow's president and ceo, described the three-site polyolefins complex as the "ideal geographical platform for doing business with eastern Europe" and Dow as the "ideal partner" for developing BSL into "one of the most modern global chemical complexes in the area." In the direction of German groups he said "where others saw problems, we saw opportunities."

The ceo defended the DEM 9.5bn the German state is providing to cover initial losses and foot the bill for new plant construction and environmental remediation. He said the money is needed to "redress the impact of 40 years of central economic planning," and added that Dow is contributing "technology, knowhow and licences worth an additional DEM 2bn." The US group paid DEM 300m for the 80% stake and will pay DEM 250m for the rest.

Some DEM 4.5bn will have been pumped into the modernisation of BSL when Dow takes full ownership. At the briefing, Stavropolous announced that its first facility for the new "Questra" syndioctactic polystyrene (SPS) will go onstream there in mid 1999. Other new plants will produce LLDPE and PP (Dow's first plant). PVC production facilities already exist, and a solid-state PET plant is also being installed there. An existing plant for unsaturated polyester resins is to be sold to Ashland Chemical. In Halle, Dow Deutschland president, Elmar Deutsch, said contracts with two plastics converters who plan to invest at BSI will be signed by Q4.

READER SERVICE: Press conference speeches by Stavropoulous, Deutsch, BSL general manager Bart Groot and BvS officials (English): PIE-No. 41460.