MEGlobal was established in June 2004 as a 50:50 joint venture between DOW and PIC to become a preferred low cost supplier of MEG and DEG for customers worldwide.

MEGlobal employs approximately 200 staff. MEGlobal’s formation included the transfer of certain assets from DOW’s existing operations. The main assets of MEGlobal include:

1. Two EG plants in Alberta, Canada (Fort Saskatchewan and Prentiss) and 75 per cent of the shares of Alberta & Orient Glycol Company Limited which owns a third EG plant in Prentiss. In total, MEGlobal’s has an annual production capacity of approximately 1,000,000 tonnes of MEG and DEG
   
   
2. Licences
   
   
3. Customer lists, sales, transportation and distribution contracts for MEG and DEG; and
   
   
4. Third party supply and agency contracts

MEGlobal has entered into a distribution agreement with EQUATE, whereby MEGlobal will act as EQUATE’s exclusive distributor for the marketing and sale of MEG and DEG produced by EQUATE, amounting to approximately 450 KTPA of product. TKOC will enter into a similar distribution agreement with MEGlobal. MEGlobal is also the exclusive distributor for the sales of EG produced by DOW’s production facilities not transferred to MEGlobal.
In aggregate, the marketing rights and the captive production of MEGlobal amount to an annual
sales volume of about 2.8 million tonnes of MEG and DEG, summarised as follows:

• 1,000,000 tonnes - MEGlobal and 75 per cent of Alberta & Orient Glycol Company Limite
  
  
• production in Canada
  
  
• 1,130,000 tonnes - DOW
  
  
• 210,000 tonnes - OPTIMAL (Malaysia)
  
  
• 450,000 tonnes - EQUATE