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
Apple Inc. is working on a self-driving shuttle service to ferry employees within its sprawling campus, the New York Times reported. The move comes after the tech giant decided to abandon the idea of building an entire self-driving car by itself. Women who are between 25 and 34 years old are losing the race in the U.S. when it comes to pay equality with men, data from the Bureau of Labor Statistics showed. This is despite the rapid increase in participation of women in the labor force. Eric Daniels, the former chief executive of Lloyds Banking Group, is suing the bank for hundreds of thousands of pounds in disputed bonuses, The Times reported. He was at the top job when the lender was bailed out with 20 billion pounds of taxpayer money during the 2008 financial crisis.
comments powered by Disqus
Follow RTT