Facility Shutdown Dow Shuts Down Styrofoam Plants
Dow is getting serious with its announced cost cutting program: the American company, one of the largest chemical companies in the world, plans to get rid of several production sites, mainly in Europe. These plans put 900 jobs at stake
Midland, Michigan/USA – Dow announced the implementation of cost reductions in line with a restructured product portfolio in reaction to recent economic uncertainties in Europe. These plans include the closing of several facilities in Europe, North America and Latin America, as well as cancelling a selection of capital projects and implementing workforce reductions, as part of the company’s previously announced cost-reduction efforts and its Efficiency for Growth program initiated in 2011.
Dow Shuts Down Styrofoam Plants in Brazil, Portugal, Hungary and The Netherlands
Dow will shut down three Styrofoam plants in Estarreja, Portugal; Balatonfuzfo, Hungary; and Charleston, Illinois; and idle a plant in Terneuzen, The Netherlands. The company will also close its toluene diisocyanate (TDI) plant in Camaçari, Brazil. In addition to these closures, Dow will consolidate certain other assets in its Polyurethanes and Epoxy businesses, optimizing their operations while remaining focused on meeting customer needs and sourcing through non-impacted assets. These actions are expected to take place over the next two years. Around 900 jobs worldwide would be affected, speakers said.
Uncertainties in Europe Reason for Plant Shutdown?
“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 N. Liveris, Dow’s chairman and chief executive officer. “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.”