Dow Chemicals close four production plants, cuts 900 jobs

Dow Chemicals to close four production plants, cuts 900 jobs

5:54 AM, 3rd April 2012
Dow Chemicals to close four production plants, cuts 900 jobs

MIDLAND, US: Dow Chemicals will close four plants and lay off 900 workers, part of a plan to slash costs by $250 million. Steep drops in demand for construction products, especially in Europe, have hurt the chemical industry in the past year. The company said that it will record $350 million in one-time charges for the plant closures and layoffs. About $110 million of the total will go to laid-off workers.

The company will close the Styrofoam plants in Illinois, Hungary and Portugal. It will also temporarily close a Styrofoam plant in the Netherlands. In the fourth quarter of 2011, Dow recorded a $264 million tax charge for its Brazilian operations. The charge was related to low profitability throughout the country. Dow will also close a Brazilian plant that produces toluene diisocyanate, a chemical needed to make polyurethane.

“Hungary and Portugal have very poor market conditions and unfavorable economic outlooks. In the fourth quarter of 2011, Dow recorded a $264 million tax charge for its Brazilian operations. The charge was related to low profitability throughout the country. This plant was a significant contributor to that. Now we’re announcing we’re permanently shutting down that plant,” said Rebecca Bentley, Director, Financial Communications, Media Relations, Mergers & Acquisitions, Dow Chemicals.

© Reuters News

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