- Dow (DOW, Financial) plans to shut down three major upstream European assets, starting mid-2026 through 2027, due to structural challenges.
- The move will cost approximately $500 million but is expected to increase Operating EBITDA by around $200 million by 2029.
- Approximately 800 jobs will be affected, adding to the previously announced 1,500 global job cuts.
Dow Inc. (DOW) has announced a strategic restructuring initiative to shut down three major upstream assets in Europe as part of its response to ongoing structural challenges in the region. These closures include an ethylene cracker in Böhlen, Germany, chlor-alkali and vinyl assets in Schkopau, Germany, and a basic siloxanes plant in Barry, UK.
The asset shutdowns are scheduled to commence in mid-2026 and are expected to conclude by the end of 2027. This strategic move is projected to require a total cash outlay of approximately $500 million spread over four years. However, Dow anticipates these actions will result in an Operating EBITDA uplift of about $200 million by 2029.
As a result of the restructuring, Dow will record charges ranging from $630 million to $790 million, which account for both non-cash items such as asset write-downs and cash items including exit and disposal costs, as well as severance and related benefit costs. The company expects to avoid approximately $60 million in annual capital expenditures post-implementation.
Approximately 800 jobs will be impacted due to these shutdowns, adding to the 1,500 global workforce reductions announced earlier this year in another cost-saving strategy.
The decision aligns with Dow’s aim to streamline operations and enhance profitability in a region facing high energy costs and competitive pressures. By reducing exposure to higher-cost, energy-intensive assets, Dow intends to optimize its portfolio and focus on more valuable derivative demands.
