As part of its Efficiency for Growth plan, first launched in 2011, US chemical giant Dow (Midland, Michigan; www.dow.com) has said it will close some of its plants in Europe as well as in both North and South America. The move, which Dow said comes in response to the ongoing weakness in Europe’s economy, will see the group shed about 900 jobs worldwide. The actions are expected to generated annual saving of about USD 250m, the chemical group said, adding that these were part of its goal to deliver an additional USD 250m in cash flow from cost interventions launched this year. As a result of the actions, Dow said it would take USD 350m in charges in Q1 2012 related to asset impairments and write-offs as well as severance payments and other costs.

As part of the plan, Dow will shut down three of its “Styrofoam” production plants, located in Estarreja / Portugal, Balatonfuzfo / Hungary as well as Charleston, Illinois / USA. The group also said it would idle its XPS line in Terneuzen / The Netherlands. In Latin America, Dow plans to shut its 60,000 t/y TDI plant in Camaçari / Brazil. In addition to the closures, the US group said it would consolidate some of its other polyurethane and epoxy assets. Speaking to Plasteurope.com, a company spokesperson said the latter initiative includes the clousre of Dow's PU production plants in Birch Vale / UK as well as Ribaforada / Spain. In addition, the group said it would move its plant in Baltringen / Germany to nearby Rheinmünster. He added that production would not be affected by the closures, with other plants expected to take on the idled capacities.

Commenting on the move, Dow CEO Andrew Liveris said, “These actions, while difficult, are in full alignment with our commitment to continually manage our portfolio to adapt to changing and volatile economic conditions, as we are seeing particularly in western Europe, and to preferentially invest in our fast-growing, technology-rich business.”