Dow to close three European chemical plants and cut 800 jobs
author: Ann
2025-07-16
Chemical companies around the world are feeling pressure to reassess their strategies amid rising production costs, sluggish demand and stricter environmental regulations in the European Union. Last year, Dow said it had begun a review of some of its European assets.
The chemical company said the ethylene cracker in Böhlen, Germany, the chlor-alkali and vinyls assets in Schkopau, Germany, and the base siloxanes plant in Barry, England, will close over the next two years. The Midland, Michigan-based company said the 800 jobs affected are part of a $1 billion cost-saving plan announced by Dow in January that will cut about 1,500 jobs worldwide. The company has nearly 36,000 employees as of September 2024.
"While this decision is costly and will take some time to work, we view it as a positive for Dow given the improved EBITDA run rate and free cash flow," said Matthew Blair, an analyst at TPH Energy Research.
Such moves should improve the supply-demand balance in commodity chemical markets, Blair added. Dow will record charges of $630 million to $790 million, including items such as asset disposals and severance payments. The company added that closure work is expected to begin in mid-2026 and is expected to be completed by the end of 2027, and decommissioning and demolition work may be extended to 2029 as needed.
The chemical company said the ethylene cracker in Böhlen, Germany, the chlor-alkali and vinyls assets in Schkopau, Germany, and the base siloxanes plant in Barry, England, will close over the next two years. The Midland, Michigan-based company said the 800 jobs affected are part of a $1 billion cost-saving plan announced by Dow in January that will cut about 1,500 jobs worldwide. The company has nearly 36,000 employees as of September 2024.
"While this decision is costly and will take some time to work, we view it as a positive for Dow given the improved EBITDA run rate and free cash flow," said Matthew Blair, an analyst at TPH Energy Research.
Such moves should improve the supply-demand balance in commodity chemical markets, Blair added. Dow will record charges of $630 million to $790 million, including items such as asset disposals and severance payments. The company added that closure work is expected to begin in mid-2026 and is expected to be completed by the end of 2027, and decommissioning and demolition work may be extended to 2029 as needed.
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