Dow to Close Three European Assets Amid Regional Economic Struggles

MIDLAND, Mich., July 7, 2025 — Dow Inc. (NYSE: DOW) has announced a strategic decision to shut down three upstream assets in Europe in response to persistent structural challenges within the region's market. This decision follows an earlier announcement in April 2025 regarding the company’s ongoing efforts to rationalize its European operations. The Board of Directors approved the closures as part of a broader initiative aimed at enhancing profitability and optimizing operational efficiency.

The affected sites include an ethylene cracker in Böhlen, Germany; chlor-alkali and vinyl (CAV) assets in Schkopau, Germany; and a basics siloxanes plant in Barry, U.K. Dow expects the shutdown of these facilities to commence in mid-2026, with the entire process projected to be completed by the end of 2027. The company anticipates a significant operational EBITDA uplift, reaching approximately $200 million by 2029.

Jim Fitterling, Chairman and CEO of Dow, emphasized the necessity of these actions in light of the challenging market dynamics in Europe. "Our industry continues to experience difficult market dynamics and an ongoing challenging cost and demand landscape. This strategic right-sizing will enable us to better align our capacity with profitable derivative demand and optimize our margins," said Fitterling.

The decision to close these facilities comes as part of Dow's ongoing commitment to eliminate higher-cost, energy-intensive assets from its portfolio. The company aims to mitigate merchant sale exposure while establishing a more sustainable operational footprint. Dow expects to incur charges between $630 million and $790 million related to these shutdowns, including non-cash write-downs and cash costs associated with the exit and severance.

Moreover, approximately 800 positions will be impacted by this decision, adding to the previously announced workforce reduction of about 1,500 roles globally as part of the company’s $1 billion cost-saving strategy initiated in January 2025. Dow has pledged to engage with local stakeholders in accordance with relevant information and consultation processes to manage the transition effectively.

The impending asset closures are part of a broader restructuring effort initiated by Dow to enhance its global asset footprint. The restructuring is designed to support the company's strategic focus on high-growth markets where it can leverage its technological and operational strengths to drive sustainable growth.

Looking ahead, Dow's management is optimistic that these strategic changes will not only stabilize the company's operations but also position it favorably in the competitive landscape of the materials science industry. The company remains committed to investing in innovation and sustainable practices, with over $6 billion allocated for near-term cash support to facilitate these transitions.

In April 2025, Dow had identified three key assets in Europe for potential action, and the recent Board approval marks a significant step in the execution of this strategic roadmap. By right-sizing its operations, Dow aims to enhance its competitive edge in the European market, where economic conditions have become increasingly volatile due to fluctuating demand and rising operational costs.

As Dow moves forward with these strategic initiatives, industry observers will be monitoring the impact of these closures on the company’s overall performance and its ability to navigate the evolving market landscape. In doing so, Dow seeks to emerge as a more agile and resilient player in the global materials science sector, reinforcing its commitment to sustainability and innovation.