Dow to Cut 800 Jobs and Close Three European Chemical Plants

Dow plans to close three plants in Europe and cut 800 jobs due to challenges in the region, leading to a 2.5% drop in shares. The shutdowns aim to remove high-cost, energy-intensive parts of Dow’s European portfolio. The move reflects pressures faced by global chemical companies from rising production costs, sluggish demand, and strict environmental regulations.

The affected plants include an Ethylene cracker in Germany and Chlor-alkali & vinyl assets in the UK. This decision is part of a larger restructuring effort that will also see about 1,500 global job cuts. Dow expects charges of $630 million to $790 million for asset disposal and severance, with the shutdown process starting in mid-2026 and potentially stretching into 2029.

TPH Energy Research analyst Matthew Blair sees the shutdown as a positive move for Dow, as it will improve EBITDA and free cash flow. The company’s actions are aimed at balancing supply and demand in the commodity chemical market. Dow anticipates continued earnings pressure due to uncertainty surrounding U.S. trade policies under President Donald Trump.

With nearly 36,000 employees as of September 2024, Dow’s decision to close plants in Europe is part of a broader strategy to streamline operations and improve financial performance. The company’s cost-saving plan includes the closure of facilities in Germany and the UK, with charges expected to range from $630 million to $790 million. The shutdown process is set to begin in mid-2026 and conclude by the end of 2027, with decommissioning activities potentially extending into 2029.

Read more at Yahoo Finance: Dow to close three European chemical plants, cut 800 jobs