The Dow logo is seen on a building in downtown Midland, Michigan, in this May 14, 2015 file photograph.
The closures target high-cost, energy-intensive operations, including an ethylene cracker in Böhlen, Germany, chlor-alkali and vinyl assets in Schkopau, Germany, and a basics siloxanes plant in Barry, UK. These shutdowns are part of a broader strategy to streamline Dow’s European portfolio, following a review of its regional assets initiated last year.
The job cuts add to a previously announced reduction of about 1,500 roles worldwide, part of a $1 billion cost-saving initiative disclosed in January. As of September 2024, Dow employed nearly 36,000 people globally. The company anticipates recording charges of $630 million to $790 million for asset disposals and severance costs.
The shutdown process is scheduled to begin in mid-2026 and is expected to conclude by the end of 2027, with potential decommissioning and demolition extending into 2029 if necessary. Matthew Blair, an analyst at TPH Energy Research, commented: “While this decision is costly and will take some time to play out, we see this as positive for Dow given the run-rate EBITDA and free cash flow improvement.” Blair noted that these measures could help balance supply and demand in the commodity chemical market.
Global chemical companies face challenges from rising production costs and varying demand in Europe, prompting strategic adjustments. Dow’s actions align with efforts to enhance efficiency amid these market conditions. Earlier in April, the company highlighted ongoing earnings pressures due to uncertainties in global trade dynamics.
The closures reflect Dow’s focus on optimizing its operations while addressing regional economic and operational challenges, with the goal of improving long-term financial performance.
