Chemical manufacturer Dow announced today that its Board of Directors approved the shutdown of three upstream assets in Europe, in addition to certain corporate and other assets across the company's global footprint.
The development serves as a follow-up to the European asset actions first announced in April 2025.
Dow said the shutdowns would likely begin in mid-2026 and finish by late 2027, with potential decommissioning and demolition continuing into 2029 if necessary.
The closures will affect approximately 800 positions. These impacted roles are separate from the nearly 1,500 global jobs included in Dow's $1 billion cost-cutting measures announced in January.
Asset actions include:
- Packaging & Specialty Plastics: Ethylene cracker in Böhlen, Germany; shutdown expected in 4Q 2027
- Industrial Intermediates & Infrastructure: Chlor-alkali & vinyl (CAV) assets in Schkopau, Germany; shutdown expected in 4Q 2027
- Performance Materials & Coatings: Basics siloxanes plant in Barry, U.K.; shutdown expected mid-year 2026
Dow expects the shutdown of upstream assets in Europe to right-size regional capacity, reduce merchant sale exposure and remove higher-cost, energy-intensive portions of its portfolio in the region.
The company also anticipates that the moves will improve its ability to supply profitable derivative demand and optimize margins.
"Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape," Dow Chair and CEO Jim Fitterling said. "Looking ahead, we remain committed to realizing the value of our incremental growth investments and enhancing profitability and cash flow through more than $6 billion in near-term cash support."
Dow's decision to shut down these assets will reportedly result in an Operating EBITDA uplift beginning in 2026, ramping to 50% of the approximate $200 million target by year-end 2027, with full delivery by 2029 and a cash outlay of approximately $500 million over four years.
The company will also record charges ranging from $630 million to $790 million, for non-cash items, cash items and severance and related benefit costs.
Dow will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes.
