(Reuters) -Chemicals company Dow (DOW) will shut down three upstream plants in Europe and cut around 800 jobs in response to structural challenges in the region, it said on Monday.
The company said the shutdown will remove higher-cost, energy-intensive portions of Dow’s portfolio in the region.
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.
“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 company said about 800 roles will be impacted as a result of these actions. This in addition to the reduction of about 1,500 Dow roles globally, announced in January as part of a $1 billion cost savings plan due to lackluster demand and margin pressures.
The company had nearly 36,000 employees as of September 2024.
Dow expects Monday’s actions to result in an uplift of operating core profit beginning in 2026, ramping to 50% of the about $200 million target by year-end 2027 with full delivery by 2029, and a cash outlay of nearly $500 million over four years.
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.
(Reporting by Pooja Menon and Katha Kalia in Bengaluru; Editing by Sahal Muhammed)
