Dow to close three European chemical plants, cut 800 jobs
(Reuters) -Dow will shut down three upstream plants in Europe and cut around 800 jobs in response to structural challenges in the region, the chemicals company said on Monday.
The company said the shutdowns will remove higher-cost, energy-intensive portions of Dow's portfolio in Europe.
Global chemical companies are struggling with the European Union's increasing production costs, lackluster demand and stringent environmental regulations, pressuring them to rethink their strategies.
Last year, Dow had said that it had started a review of some of its European assets.
An Ethylene cracker in Böhlen, Germany, Chlor-alkali & vinyl (CAV) assets in Schkopau, Germany and a Basics siloxanes plant in Barry, UK will be shut in the next two years, the chemicals company said on Monday.
"Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape," said CEO Jim Fitterling.
The Midland, Michigan-based company said the 800 impacted jobs is in addition to the reduction of about 1,500 Dow roles globally, announced in January as part of a $1 billion cost savings plan.
The company had nearly 36,000 employees as of September 2024.
Dow will record charges ranging from $630 million to $790 million, for items including disposal of assets and severance.
The shutdown of the assets is expected to begin in mid-2026 and is estimated to be complete by the end of 2027, with potential decommissioning and demolition to continue into 2029 as needed, the company added.
In April, Dow had said it expects extended pressure on earnings as uncertainty from U.S. President Donald Trump's shifting trade policies adds to macroeconomic volatility.
(Reporting by Pooja Menon and Katha Kalia in Bengaluru; Editing by Sahal Muhammed)
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