Dow will shut down three upstream European assets in response to structural challenges in the region

Rhea-AI Summary

Dow (NYSE: DOW) has announced significant restructuring actions in Europe, including the shutdown of three major upstream assets to address structural challenges. The closures include an ethylene cracker in Böhlen, chlor-alkali & vinyl assets in Schkopau (both in Germany), and a basics siloxanes plant in Barry, UK.

The shutdowns, beginning mid-2026 through 2027, will require a $500 million cash outlay over four years but are expected to deliver an Operating EBITDA uplift of approximately $200 million by 2029. The company will record charges between $630-790 million and approximately 800 Dow roles will be impacted, in addition to the previously announced 1,500 global workforce reduction.

Positive

• None.

Negative

• Significant restructuring charges of $630-790 million
• Cash outlay requirement of approximately $500 million over four years
• Elimination of approximately 800 additional jobs
• Extended implementation period with benefits not fully realized until 2029

Insights

Financial Analyst

Dow's European asset shutdowns aim to improve profitability amid structural challenges, with $200M EBITDA uplift but significant restructuring costs.

Dow's decision to shut down three upstream European assets represents a strategic pivot in response to persistent structural challenges in the region. The company is targeting an Operating EBITDA uplift of approximately $200 million at full run rate by 2029, with implementation beginning in 2026 and reaching 50% of the target by year-end 2027. This comes at a considerable cost - a cash outlay of around $500 million spread over four years and restructuring charges between $630 million and $790 million.

The shutdowns affect assets across all three of Dow's operating segments: the ethylene cracker in Böhlen (Packaging & Specialty Plastics), chlor-alkali & vinyl assets in Schkopau (Industrial Intermediates & Infrastructure), and a basics siloxanes plant in Barry (Performance Materials & Coatings). The Performance Materials division will see the largest EBITDA improvement ($90 million), followed by Packaging ($60 million).

This move aligns with Dow's "best-owner mindset" strategy, targeting higher-cost, energy-intensive assets while reducing merchant sale exposure. The company expects to avoid approximately $60 million in annual capital expenditures after implementation. The workforce impact is substantial, with approximately 800 roles being eliminated, adding to the 1,500 global positions already cut under the $1 billion cost savings initiative announced in January.

These actions reflect Dow's assessment that Europe's chemical industry faces fundamental profitability challenges rather than cyclical downturns. By right-sizing capacity and focusing on more profitable derivative demand, management is attempting to enhance margins in a region burdened by high energy costs and competitive disadvantages.

• Right-sizing upstream regional capacity, reducing merchant sale exposure, and removing higher-cost, energy-intensive assets
• Building on April 2025 announcement through actions across the Company's three operating segments to support European profitability
• Asset shutdowns will result in Op. EBITDA uplift beginning in 2026, ramping to 50% of the ~$200 million target by end-2027 and full delivery by 2029

MIDLAND, Mich., July 7, 2025 /PRNewswire/ -- Dow (NYSE: DOW) announced today that, as a follow-up to the European asset actions first announced in April 2025, its Board of Directors has approved the shutdown of three upstream assets in Europe, in addition to certain corporate and other assets across the Company's global asset footprint:

• Packaging & Specialty Plastics: Ethylene cracker in Böhlen, Germany; shutdown expected in 4Q27
• Industrial Intermediates & Infrastructure: Chlor-alkali & vinyl (CAV) assets in Schkopau, Germany; shutdown expected in 4Q27
• Performance Materials & Coatings: Basics siloxanes plant in Barry, U.K.; shutdown expected mid-year 2026

The shutdown of upstream assets in Europe will right-size regional capacity, reduce merchant sale exposure, and remove higher-cost, energy-intensive portions of Dow's portfolio in the region. This will improve our ability to supply profitable derivative demand and optimize margins.

"Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape," said Jim Fitterling, Dow chair and CEO. "Over the past decade, we have demonstrated Dow's commitment to operating with a best-owner mindset by taking proactive actions across higher-cost or non-strategic assets. Looking ahead, we remain committed to realizing the value of our incremental growth investments and enhancing profitability and cash flow through more than $6 billion in near-term cash support."

In April 2025, the Company announced it had identified three assets in Europe for action across all of its operating segments. On June 30, 2025, Dow's Board of Directors approved restructuring actions to rationalize the Company's global asset footprint, including these three assets as part of its European review, and certain corporate and other assets.

Dow's actions to shut down these assets will result in an Operating EBITDA uplift beginning in 2026, ramping to 50% of the approximate $200 million target by year-end 2027 with full delivery by 2029, with a cash outlay of approximately $500 million over four years.

As a result of these actions, the Company will record charges ranging from $630 million to $790 million, for both non-cash items—such as asset write-downs and write-offs—and cash items, such as exit and disposal of assets, as well as severance and related benefit costs.

The shutdown of the assets is expected to begin in mid-2026 and is estimated to be complete by the end of 2027, with potential decommissioning and demolition to continue into 2029 as needed.

Approximately 800 Dow roles will be impacted as a result of these actions. These roles are in addition to the $1 billion cost savings actions announced in January that included a workforce reduction of approximately 1,500 Dow roles globally.

Dow will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes.

Asset	Estimated Shutdown Timing	Implementation Timing	Cash Outlay ($MM)	Op. EBITDA Uplift at Full Run Rate ($MM)	Average Capex Avoidance ($MM/year)
P&SP: Böhlen Cracker	4Q27	2027 - 2029	$130	$60	$20
II&I: Schkopau CAV	4Q27	2026 - 2029	$80	$10	$15
PM&C: Barry Siloxane	Mid-2026	2026 - 2029	$180	$90	$20
Corporate and Other Actions	2026 - 2028	2026 - 2028	$120	$40	$5
Total			~$500	~$200	~$60

About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 30 countries and employ approximately 36,000 people. Dow delivered sales of approximately $43 billion in 2024. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

For further information, please contact:
Investors:	Media:
Andrew Riker	Rachelle Schikorra
ajriker@dow.com	ryschikorra@dow.com

X: https://twitter.com/DowNewsroom 
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LinkedIn: http://www.linkedin.com/company/dow-chemical 
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Cautionary Statement about Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow's products and services and ability to compete in such markets; Dow's ability to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions, tariffs and trade policies, or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics, and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow's information technology networks and systems, including the impact of cyberattacks; risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities; and any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow's business.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and the Company's subsequent Quarterly Reports on Form 10-Q. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

®TM Trademark of The Dow Chemical Company or an affiliated company of Dow       

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SOURCE The Dow Chemical Company

FAQ

What assets is Dow (NYSE:DOW) shutting down in Europe in 2025-2027?

Dow is shutting down three major assets: an ethylene cracker in Böhlen, Germany (4Q27), chlor-alkali & vinyl assets in Schkopau, Germany (4Q27), and a basics siloxanes plant in Barry, UK (mid-2026).

How much will Dow's European asset shutdowns cost and save?

The shutdowns will require a $500 million cash outlay over four years but are expected to deliver an Operating EBITDA uplift of approximately $200 million by 2029, with annual capex avoidance of ~$60 million.

How many jobs will be affected by Dow's European restructuring in 2025?

Approximately 800 Dow roles will be impacted by these shutdowns, in addition to the previously announced reduction of 1,500 global positions from January's cost savings initiative.

When will Dow complete the European asset shutdowns announced in 2025?

The shutdowns will begin in mid-2026, with completion expected by the end of 2027. Potential decommissioning and demolition activities may continue into 2029.

What is the financial impact of Dow's European restructuring on the company?

Dow will record charges of $630-790 million for non-cash items (asset write-downs) and cash items (exit costs and severance). The company expects an Operating EBITDA uplift starting 2026, reaching 50% of ~$200 million target by end-2027.