Dow to close three upstream European chemical plants; loss of 800 jobs

In response to what it says are structural challenges in Europe, US materials firm Dow has announced that, as a follow-up to the European asset actions first announced in April 2025, its Board of Directors has approved the shutdown of three upstream assets in Europe, and cut around 800 jobs.
The plants are in the sectors of Packaging & Specialty Plastics: ethylene cracker in Böhlen, Germany; shutdown expected in 4Q27; Industrial Intermediates & Infrastructure: chlor-alkali & vinyl (CAV) assets in Schkopau, Germany; shutdown expected in 4Q27 and Performance Materials & Coatings: basics siloxanes plant in Barry, UK; shutdown expected mid-year 2026
The company said the shutdowns will remove higher-cost, energy-intensive portions of Dow's portfolio in Europe. “This will improve our ability to supply profitable derivative demand and optimise margins,” it added.
Global chemical companies are feeling the pressure to reassess strategies, with the European Union's increasing production costs, lacklustre demand and stringent environmental regulations.
Last year, Dow had said that it had started a review of some of its European assets.
"Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape," said Jim Fitterling, Dow Chair/CEO. "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 in near-term cash support."
In April 2025, the company announced it had identified three assets in Europe for action across all of its operating segments. On June 30, 2025, Dow's Board of Directors approved restructuring actions to rationalise the company's global asset footprint, including these three assets as part of its European review, and certain corporate and other assets.
Dow's actions to shut down these assets will result in an operating EBITDA uplift beginning in 2026, ramping to 50% of the approximate US$200 million target by year-end 2027 with full delivery by 2029, with a cash outlay of approximately US$500 million over four years.
As a result of these actions, the company says it will record charges ranging from US$630 million to US$790 million, for both non-cash items, such as asset write-downs and write-offs, and cash items, such as exit and disposal of assets, as well as severance and related benefit costs.
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.
Approximately 800 Dow roles will be impacted as a result of these actions. These roles are in addition to the US$1 billion cost savings actions announced in January that included a workforce reduction of approximately 1,500 Dow roles globally.
The company had nearly 36,000 employees as of September 2024.
Dow says it will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes.
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