Dow Chemicals to eliminate 900 jobs, shutter four plants

Dow Chemicals, the $53.6 billion US-based multinational corporation, today announced plans to eliminate 900 jobs and shutter four manufacturing plants in response to weak demand for its products in Europe.

The world's leading chemicals and plastics producer will eliminate 900 jobs or 1.7 per cent of its 52,000 global workforce in the Americas and Europe in the first quarter as part of a plan to save costs by about $250 million each year.
As part of its latest overhaul, the Michigan-based company will close four manufacturing plants in Europe, North America and Latin America, idle its plant in Terneuzen, The Netherlands and consolidate some of its polyurethanes and epoxy businesses.

Dow will shut down three plants that produce its Styrofoam brand insulation products in Estarreja in Portugal, Balatonfuzfo in Hungary and Charleston in Illinois and close its toluene diisocyanate plant in Camaçari, Brazil.

Styrofoam is a key insulation material used in home and commercial construction.

Dow will also cancel certain capital projects as part of the company's previously announced cost-reduction efforts and its Efficiency for Growth programme initiated in 2011.

Dow said that the changes will take place over the next two years and will lead to about $350 million in severance and write-off charges.

''These actions, while difficult, are in full alignment with our commitment to continually manage our portfolio to adapt to changing and volatile economic conditions, as we are seeing particularly in western Europe, and to preferentially invest in our fast-growing, technology-rich businesses,'' said Andrew Liveris, Dow's chairman and CEO.

''Today's announcement further demonstrates our resolve and ability to take swift, strategic cash flow interventions that will keep Dow solidly on a trajectory to deliver $10 billion in EBITDA in the near term.''