Welsh factory to shed almost 300 jobs in cost-cutting move
Chemical giant Dow is closing three parts of its operation including one section in Barry, Vale of Glamorgan
Three sites across Europe will close as part of the changes announced by Dow
(Image: John Myers )
Hundreds of jobs are set to be lost after a chemical giant confirmed plans to cease some of its operation in Wales along with shutdowns at two other sites in Europe. Dow has confirmed its basic siloxanes operations at Barry will be shut down by the middle of next year.
In total, alongside closures of two sites in Germany, around 800 jobs will go with 291 roles in Wales having previously been identified as at-risk as part of cost-cutting measures. In January the US company announced a workforce reduction of 1,500 roles around the world to make financial savings of $1bn.
The company has operated from the Barry site since 1971 when it bought the site from Midland Silicones and now employs 850 people on a 160-acre site. For our free daily briefing on the biggest issues facing the nation sign up to the Wales Matters newsletter here .
The confirmed closure of part of the plant means job losses could affect a third of the workforce.
Dow is a chemical producer and was one of the largest in the world in 2021.
The US manufacturer has more than 200 sites globally in 30 different countries, employing approximately 36,000 people currently including 850 workers at the Barry plant.
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Basic chemicals are used internally by Dow as raw materials and are also sold worldwide in areas such as the food industry, paints and coatings and dry cleaning products.
The company previously said cheap competition from abroad was behind the potential closures as its basic products are no longer competitive on the open market with China undercutting prices.
Dow currently employs 850 workers in Barry
(Image: John Myers )
The shutdown of the "upstream assets" across three sites in Barry and Germany aims to "right-size regional capacity, reduce merchant sale exposure, and remove higher-cost, energy-intensive portions of Dow's portfolio in the region," according to the company.
The shutdowns are expected to start in mid-2026 and be completed by the end of 2027 with demolition to continue into 2029 where needed.
Jim Fitterling, Dow chair and CEO said: "Our industry in Europe continues to face difficult market dynamics as well as an ongoing challenging cost and demand landscape.
"Over the past decade we have demonstrated Dow's commitment to operating with a best-owner mindset by taking proactive actions across higher-cost or non-strategic assets.
"Looking ahead we remain committed to realizing the value of our incremental growth investments and enhancing profitability and cash flow through more than $6bn in near-term cash support."
Due to the closures Dow is expecting to spend $630m-$790m for the disposal of assets as well as severance and related benefit costs.
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When the potential job losses were first mooted union Unite called the proposals "outrageous" with general secretary Sharon Graham saying: "The potential loss of so many well paid jobs in the area will be devastating, not just to our members and their families, but to the local economy as well."
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