Dow Cuts 800 Jobs, Shuts Major European Facilities To Boost Profit

Dow Inc. DOW is moving forward with a series of strategic asset closures across Europe as part of a broader restructuring plan to boost long-term profitability and streamline global operations.

The decision, approved by the board, involves winding down operations at an ethylene cracker in Böhlen and chlor-alkali and vinyl units in Schkopau, Germany, and a siloxanes facility in Barry, U.K. The closures will begin in mid-2026 and are expected to conclude by late 2027, with decommissioning continuing through 2029.

The restructuring, first outlined in April, is expected to boost operating EBITDA by approximately $200 million annually by 2029. Dow will spend about $500 million over four years to carry out the changes and expects to take charges of $630 million to $790 million, including severance, asset disposal, and write-downs.

Also Read: Dow Exits DowAksa JV, Stays Course On ‘Best-Owner’ Strategy

Chair and CEO Jim Fitterling said the actions reflect ongoing efforts to respond to weak market conditions and high costs in Europe. “We’re committed to unlocking value from targeted growth projects and strengthening our cash flow with over $6 billion in near-term support,” he said.

Approximately 800 Dow roles will be impacted as a result of these actions. These roles are in addition to the $1 billion cost savings actions announced in January that included a workforce reduction of approximately 1,500 Dow roles globally.

Dow said it will coordinate with local stakeholders and follow legal requirements in each country throughout the process.

The company said the restructuring will reduce its reliance on higher-cost, energy-intensive operations and allow it to focus on more profitable downstream demand.

Related ETFs: Materials Select Sector SPDR Fund XLB, iShares U.S. Basic Materials ETF IYM.

Price Action: DOW shares are trading lower by 2.04% to $27.88 at last check Monday.

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