logo
Share SHARE
FONT-SIZE Plus   Neg

Dow Chemical Implements Cost Reduction Plans; To Cut Around 900 Jobs Worldwide

Dow Chemical Co. (DOW) said it is implementing cost reductions in line with its commitment to actively manage its portfolio and in response to continued weakness in the European economy.

Actions would include closing certain manufacturing plants in Europe, North America and Latin America, as well as canceling a selection of capital projects and implementing workforce reductions, as part of the company's previously announced cost-reduction efforts and its Efficiency for Growth program initiated in 2011. The company expects to cut approximately 900 positions worldwide, and in the first quarter, it will take charges totaling about $350 million for asset impairments and write-offs, severance and other costs related to these measures.

Dow also anticipates that it will save approximately $250 million annually from these actions. The savings are in addition to the $500 million in cash flow that Dow already delivered in 2011 from the inception in May 2011 of its Efficiency for Growth program. These savings are also part of the company's goal to deliver an additional $250 million of cash flow from cost interventions in 2012.

Further, Dow will shut down three plants that produce STYROFOAM Brand Insulation products located in Estarreja, Portugal; Balatonfuzfo, Hungary; and Charleston, Illinois; and idle a plant in Terneuzen, The Netherlands. Dow will also close its toluene diisocyanate plant in Camaçari, Brazil.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Consumers in Nigeria are calling for a boycott of Coca-Cola products sold in the African nation after a high court judge ruled that the products could be "poisonous". Justice Adedayo Oyebanji of the Lagos High Court ruled that high levels of benzoic acid and sunset additives in Coca-Cola's soft drinks could pose a health risk to consumers when mixed with ascorbic acid, commonly known as Vitamin C. Charles Murphy, a partner at New York hedge fund Paulson & Co., fell to his death after jumping out of a hotel window in Manhattan on Monday. Murphy was found dead on the fourth-floor terrace of the Sofitel New York Hotel after he jumped from a window on the 24th floor. Internet media company BuzzFeed is preparing to go public in 2018, media site Axios reported Wednesday, citing industry sources. New York-based BuzzFeed was founded in 2006 by Jonah Peretti and John Johnson III as a viral lab, focusing exclusively on tracking viral content.
comments powered by Disqus
Follow RTT