Dow to close three European chemical plants, cut 800 jobs, HR News, ETHRWorld
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By Pooja Menon and Katha KaliaDow 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, sending its shares down 2.5% in morning trade.The company said the shutdowns will remove higher-cost, energy-intensive portions of Dow's portfolio in Europe.Global chemical companies are feeling the pressure to reassess strategies, with the European Union's increasing production costs, lackluster demand and stringent environmental regulations.Last year, Dow had said that it had started a review of some of its European assets.An Ethylene cracker in Bohlen, Germany, Chlor-alkali & vinyl 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.The Midland, Michigan-based company said the 800 impacted jobs are 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."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," said TPH Energy Research analyst Matthew Blair.Such actions should improve the balance between supply and demand in the commodity chemical market, Blair added.Dow will record charges ranging from $630 million to $790 million, for items including disposal of assets and severance.The shutdown is expected to begin in mid-2026 and is estimated to be complete by the end of 2027, with potential decommissioning and demolition to stretch into 2029 as needed, the company added.In April, Dow had said it expects extended pressure on earnings due to uncertainty from U.S. President Donald Trump's shifting trade policies. (Reporting by Pooja Menon and Katha Kalia in Bengaluru; Editing by Sahal Muhammed)
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