Dow to shut three upstream plants in Germany, UK

(Sharecast News) - Dow will shut down three upstream chemical plants in Europe and cut approximately 800 jobs, the chemicals giant announced on Monday, as part of a broader effort to streamline operations in response to persistent cost pressures and weak regional demand. The company said in a release that the decision followed a strategic review announced in April, as part of a wider plan to reshape the company's global asset base.

It said the sites affected include an ethylene cracker in Böhlen and chlor-alkali and vinyl assets in Schkopau, both in Germany, as well as a basic siloxanes plant in Barry, UK.

The closures were scheduled to start in mid-2026 and conclude by the end of 2027, with decommissioning and demolition possibly extending into 2029.

Dow said the shutdowns were designed to reduce exposure to merchant sales, remove higher-cost and energy-intensive assets, and improve its ability to serve more profitable derivative demand.

The company said it expects an operating EBITDA uplift beginning in 2026, with 50% of the estimated $200m benefit achieved by the end of 2027 and full realisation by 2029.

"Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape," said Dow chair and CEO Jim Fitterling.

"We remain committed to enhancing profitability and cash flow through more than $6bn in near-term cash support."

The closures would result in charges of between $630m and $790m, covering asset write-downs, severance, and other exit costs.

Dow said it planned to spend about $500m in cash over four years to carry out the restructuring.

The company's move came as global chemical producers grappled with mounting pressure in Europe from high energy costs, tightening regulations, and subdued economic growth.

According to Reuters, the 800 roles affected were in addition to 1,500 job cuts announced in January under a $1bn global cost-saving initiative.

Dow had nearly 36,000 employees as of September last year.

The company said it would engage with local stakeholders in accordance with national regulations and consultation processes.

At 1046 EDT (1546 BST), shares in Dow were down 1.53% in New York at $28.03.

Reporting by Josh White for Sharecast.com.