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Dow to shut three European plants by 2027, citing high costs and weak demand; 800 jobs affected amid global restructuring.
Dow Inc. has announced a significant restructuring initiative focused on addressing ongoing structural challenges in the European market. As part of a broader strategic effort to streamline operations and optimize profitability, the company’s Board of Directors has officially approved the permanent shutdown of three upstream production facilities in Europe. This decision follows a similar strategic direction first disclosed in April 2025.
The specific sites slated for closure include:
• An ethylene cracker in Böhlen, Germany, under Dow’s Packaging & Specialty Plastics segment. The shutdown is expected to take place in the fourth quarter of 2027.
• Chlor-alkali and vinyl (CAV) assets in Schkopau, Germany, part of the Industrial Intermediates & Infrastructure segment. This closure is also targeted for completion in the fourth quarter of 2027.
• A basic siloxanes facility in Barry, United Kingdom, under the Performance Materials & Coatings business. This plant will be shut down by mid-2026.
The company stated that these actions are aimed at realigning Dow’s production capacity in Europe with current market realities. The facilities being shuttered are identified as high-cost and energy-intensive, which have become increasingly unviable in the current economic climate. The closures are intended to reduce Dow's exposure to less profitable merchant sales and to allow the company to better serve profitable downstream derivative demand with improved margins.
Jim Fitterling, Dow's Chairman and CEO, commented that the European chemical industry is grappling with persistent market volatility and an increasingly challenging cost and demand environment. He emphasized that Dow remains committed to disciplined capital allocation and to maintaining its "best-owner" operational philosophy. “Over the past decade, we've made bold decisions to exit high-cost or non-core assets. These shutdowns mark another proactive step to support near-term growth and long-term financial health,” Fitterling said.
The operational restructuring will result in a targeted Operating EBITDA uplift of approximately $200 million, with 50% expected to be realized by the end of 2027, and full benefits delivered by 2029. The company estimates a cash investment of around $500 million over four years to support these transitions.
As part of this move, Dow will record pre-tax charges estimated between $630 million and $790 million. These include both non-cash impairments (like asset write-downs) and cash expenses related to severance, asset disposal, and facility decommissioning.
An estimated 800 employee roles will be impacted by the shutdowns, in addition to the 1,500 global roles affected by previously announced cost-saving measures in January 2025 aimed at reducing expenses by $1 billion.
Dow expects decommissioning and demolition activities to extend into 2029, beyond the physical plant shutdowns which will begin in mid-2026 and conclude by late 2027.
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