Dow to close three upstream European assests
The decision is a follow-up to the European asset actions first published in April 2025 and has been approved by the Board of Directors.
The three assets that will shut down include one in the packaging & specialty plastics category, specifically the ethylene cracker, located in Böhlen, Germany, and one in industrial intermediates & infrastructure, a chlor-alkali & vinyl (CAV) asset in Schkopau, Germany. Both are expected to shut down in the fourth quarter of 2027.
The last asset to close, falling in the performance materials & coatings sector, is the basics siloxanes plant located in Barry, UK, which is expected to shutter mid-year 2026. The decision to close these assets is said to be a strategic move aimed at aligning regional capacity with market realities.
The closures will reduce exposure to merchant sales and phase out higher-cost, energy-intensive operations within the company's European portfolio. In addition, the restructuring is expected to enhance Dow's ability to meet demand for higher-margin derivatives while improving overall profitability and operational efficiency across the region.
"Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape," said Jim Fitterling, Dow's chair and CEO, in a statement. "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 6 billion USD in near-term cash support." Dow previously identified three European assets across all business segments for potential closure in April this year.
Following this, on June 30, the Board approved a broader restructuring plan to streamline the company's global asset base, including these sites and select corporate holdings. The shutdowns are expected to start sometime in mid-2026 and conclude by late 2027, with decommissioning possibly extending into 2029.
These decisions are projected to deliver a 200 million USD annual Operating EBITDA benefit, reaching 50 percent of that target by the end of 2027 and full impact by 2029. Dow anticipates spending approximately 500 million USD over four years to execute the plan.
The company expects to record charges between 630 million USD and 790 million USD, covering non-cash asset impairments and cash costs related to asset disposals, severance, and benefits. Around 800 positions will be affected, in addition to the 1,500 global roles impacted by the 1 billion USD cost-saving initiative announced earlier in January.
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