Occidental to Enter Joint Venture With Geon

Los Angeles-based Occidental Petroleum Corp. and Geon Co. of Avon Lake, Ohio, have agreed to enter into a joint venture that would create North America’s largest maker of polyvinyl chloride, a type of plastic used to make pipes and other products. Occidental’s chemical subsidiary, OxyChem, would own 76% of the venture and Geon would own 24%. The combination is expected to reduce operating costs by about $80 million a year, said Ray R. Irani, Occidental’s chairman and chief executive. “This is a further step in our program to strengthen Occidental’s position in businesses in which we are a leader and to increase our returns on assets in our chemical businesses,” Irani said. On the New York Stock Exchange, Occidental shares rose 25 cents to close at $27.13, and Geon shares gained $3.13 to close at $22.81.