Dow Chemical Pbb Budget

Background Dow Chemicals is the largest, by market position, ethylene and polythene shaping machine in the world having 7% of world(prenominal) polythene capacity by year end 1995. Why then would a company in this position be interested in hire Petroquimica Bahia Blanca (PBB), a roughly 20 year old petrochemical industrial found that fires ethylene and polyethylene, which is being privatized by the Argentine presidency? obviously put, the PBB plant provides Dow Chemicals the opportunity to expand on their pencil lead global market position and become the dominant polyethylene producer in Latin America. First some downplay on the product under consideration. Polyethylene plastic is utilize in many forms, from milk jugs to grocery store bags, and is produced from ethylene. ethylene is produced from internal gas molecules called ethane or from crude oil colour molecules called naphtha. These molecules argon send to processing plants, crackers, which conve rts the molecules to ethylene, the ethylene is then sent to plants which produce different forms of polyethylene. The PBB plant contains a cracker and a mellow density polyethylene plant.

The PBB plant eruditeness would be the jump step in the overall Argentina polyethylene condescension strategy and should be considered by Dow Chemicals for numerous reasons including merged strategy, point location, growth potential, and current government policies in Argentina. To be triple-crown in the polyethylene industry in Argentina, along with acquiring the PBB plant, Dow would need to take devil additional actions first, induce two polyethylene plants from Polisur and then build a c urrent ethylene cracker accompanied with a p! olyethylene plant. The acquisition of the Polisur polyethylene plants makes sense as they are sourced ethylene from the PBB plant, opus crook of the new ethylene cracker and polyethylene plant would retard production can meet the forecasted demand growth. vindication Dow Chemicals should invest in the PBB facility,...If you want to get a fully essay, order it on our website: OrderEssay.net

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