Dow Closes Three Major European Plants and Lays Off 800 Employees

Dow Chemical recently announced that it will close three of its upstream assets in Europe, including the ethylene cracker in Buren, Germany, the chlor-alkali and vinyl (CAV) plant in Schkoborg, Germany, and the basic siloxane plant in Barry, UK, which are expected to be closed in the fourth quarter of 2027 and mid-2026, respectively.

This decision is a continuation of the company's European asset restructuring plan launched in April 2025, aimed at addressing Europe's long-standing structural challenges such as high costs and low demand. Dow said that this move will optimize the European regional capacity allocation, reduce commercial sales risks, and divest high-cost, energy-intensive assets, thereby improving profit margins and meeting the supply and demand of high-value-added derivatives.

The asset closure will have a positive impact on the company's finances. After Dow closes the relevant assets, it is expected to start increasing operating EBITDA from 2026, and is expected to achieve 50% of the target of approximately US$200 million by the end of 2027, and fully achieve it in 2029. The entire process is expected to invest approximately $500 million in cash over four years. Accordingly, the company will recognize related expenses totaling between $630 million and $790 million, including asset impairment, write-offs, asset disposals, severance pay and related benefit costs.

The restructuring will directly affect approximately 800 jobs. The company previously announced a $1 billion cost-saving plan in January 2025 involving layoffs of approximately 1,500 people worldwide. At the end of May, more than 700 employees in the chemical triangle in central Germany protested in an attempt to retain Dow's production bases and jobs in Buren, Schkoborg and other places.

Jim Fitterling, chairman and CEO of Dow, said that the company has always adhered to the "best owner" mentality to manage its asset portfolio, and will continue to focus on high-return investments in the future, while improving profitability and cash flow through more than $6 billion in short-term cash resources. The company also emphasized that it will strictly promote information disclosure and stakeholder consultation in accordance with the regulations of various countries to ensure the compliance and transparency of the restructuring process.