Dow Inc. Shuts Three European Plants, Cuts 800 Jobs

Dow Inc. announced plans to close three European petrochemical facilities by the end of 2027, including an ethylene cracker in Böhlen, Germany, a chlorovinyls unit in Schkopau, Germany, and a siloxanes plant in Barry, U.K. These closures will eliminate approximately 800 jobs and aim to streamline operations by reducing regional capacity, lowering exposure to merchant sales, and removing higher-cost, energy-intensive assets. The shutdowns are projected to improve Dow's operating earnings before interest, taxes, depreciation, and amortization (EBITDA), starting in 2026 and reaching $200 million by 2029, despite an expected cash outlay of around $500 million and charges between $630 million and $790 million. CEO Jim Fitterling cited challenging market dynamics and cost landscapes in Europe as key factors driving this strategic move to optimize margins and enhance profitability. Analyst projections suggest potential upside for Dow's stock, with average price targets indicating significant growth potential amid these restructuring efforts. Dow's strategy reflects a broader industry trend of reassessing European assets due to high energy costs and regulatory challenges.