Dow shuts down three European upstream assets: including ethylene cracking, chlor-alkali and vinyl (CAV) plants, as well as basic silicone plants

Thread Content

On July 7, Dow announced that its board of directors had approved the closure of three upstream assets in Europe in order to address the structural challenges facing that region and improve profitability. The assets to be shut down include: packaging and specialty plastics: the ethylene cracking plant located in Boren, Germany, which is expected to close in the fourth quarter of 2025. Industrial intermediates and infrastructure: The chlor-alkali and vinyl (CAV) assets located in Schkopau, Germany, are expected to close in the fourth quarter of 2025. Performance materials and coatings: The silicone base plant in Barry, UK, is expected to close by mid-2026. It is understood that this shutdown will affect around 800 Dow jobs; it is part of the $1 billion in cost-cutting measures announced by the company in January this year, which include laying off approximately 1,500 Dow employees worldwide. Dow expects that the closure of these assets will start to boost operating EBITDA (earnings before interest, taxes, depreciation, and amortization) starting in 2026; by the end of 2027, it is expected to reach 50% of the target of around $200 million, with full achievement of this target by 2029. The cash expenditure over four years was approximately 500 million dollars. It is reported that the decision to shut down these three factories is part of more than 20 \"asset actions\" initiated by Dow since 2023. Previously, the company closed its polyether polyol plant in San Lorenzo, Argentina, and its alkoxylation plant in the Nangang Industrial Zone in Taiwan, China, in 2024. It also sold non-core assets such as its flexible packaging adhesive business (to Arkema).