Dow Chemical cut 2,500 jobs as part Dow Corning merger

Dow Chemical to cut 2,500 jobs as part of Dow Corning merger

5:31 AM, 29th June 2016
Dow Chemical to cut 2,500 jobs as part of Dow Corning merger
Dow Chemical Company headquarters building located in Midland, US. (File photo)

MIDLAND, US: The Dow Chemical Company said that it would cut 2,500 jobs globally, about 4 percent of its workforce, as part of a deal to assume full control of Dow Corning Corporation.

In addition, the company also said that would shut down its silicones manufacturing facilities in Greensboro (North Carolina) and Yamakita (Japan), as well as certain administrative, corporate and manufacturing facilities.

The chemical company said that shutting these facilities would help it be more competitive and streamline costs also expected to save $500 million a year after restructuring ownership.

The Company will take a charge of approximately $410 million to $460 million in the second quarter of 2016 for asset impairments, severance and other costs related to these measures, which are expected to be completed in the next two years.

The transaction will also add to Dow Chemical's operating earnings per share, cash flow from operations and free cash flow in the first full year after transaction close.

These actions position Dow to achieve its cost synergy target run rate of 70 percent within 12 months of closing the Dow Corning transaction, and 100 percent within 24 months. In addition, the Company continues to progress efforts to capture significant growth opportunities driven by broader product offerings in key business areas, cross-selling opportunities and expanded R&D capabilities to commercialize innovations faster.

“We are moving quickly and effectively to integrate Dow Corning and deliver the synergies that will drive new levels of value creation for our customers and generate even greater returns for our shareholders,” said Andrew Liveris, chairman and CEO of Dow.

“With these difficult but necessary actions, we are bringing together the best of each company’s talent and technology, accelerating Dow’s strategy to go narrower and deeper into attractive, targeted market sectors, and setting the stage for the new Dow – the world’s leading material science company,” added Liveris.

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