Updated from 2:38 p.m.

Dow Chemical ( DOW) is negotiating to revive a proposed joint-venture with the Kuwaiti firm Petrochemicals Industries to build a new petrochemicals plant.

The proposed plant is a component of Dow Chemical's strategy to reposition petrochemical assets near abundant, low-cost sources of hydrocarbon feedstock.

Petrochemical Industries surprised Dow last December when it backed out of their joint venture because of the global economic downturn.

Dow is also negotiating with two other parties about pursuing a venture that would be similar to the now-defunct Kuwaiti project.

"As we have said all along, we are interested in revisiting the deal with our partner in Kuwait, to that end we are pursuing arbitration and pursuing other opportunities as well," a Dow Chemical spokesperson said in an email.

Dow Chemical CEO Andrew Liveris told Bloomberg that the likelihood of reaching a new deal with Kuwait is low.

Shares of Dow Chemical slid 6.4% to $6.43 on Wednesday. Rohm & Haas ( ROH), the Philadelphia chemical firm that Dow Chemical agreed on Tuesday to purchase by April 1, moved fractionally lower to $77.75.

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