Dow Plans to Close Three Chemical Plants in Europe
2025-7-10
Recently, Dow announced in a statement that its board of directors has approved the permanent closure of three basic chemical production plants in Europe (two in Germany and one in the UK), as well as the closure of some companies and other assets in the company¡äs global asset portfolio. The company stated that these measures will result in the layoff of approximately 800 job positions.
According to the statement, the steam cracking unit located in Böhlen, Germany (under Dow Packaging and Specialty Plastics division) and the chlor alkali and vinyl assets located in Schkopao, Germany (under Dow Industrial Intermediates and Infrastructure division) will be shut down in the fourth quarter of 2027.
The European chemical industry continues to face market difficulties and dual challenges of cost and demand, "said Jim Fitterling, Chairman and CEO of Dow Chemical Company, in a statement.
In April 2025, Dow announced that it was evaluating the possibility of idle or shut down of these two assets.
Dow¡äs factory in Böhlen, Germany operates a mixed feed cracking unit with an annual ethylene production capacity of 510,000 tons. The cracking unit also produces 250,000 tons of chemical grade propylene, crude C4, and cracking gasoline annually, and produces 105,000 tons of butadiene annually through C4 fractions.
Dow¡äs factory in Schkopao, Germany adopts ion membrane technology to mannufacture 250,000 tons of chlorine gas, 275,000 tons of caustic soda and by-product hydrogen gas annually. It also has a derivative production capacity including 740,000 tons of dichloroethane (EDC) and 390,000 tons of vinyl chloride monomer (VCM).
Dow also operates a production base in Leuna, Germany, near Böhlen and Schkopao. These bases collectively constitute Dow¡äs so-called BSL integrated production base.
Dow also confirmed in a statement that it will permanently shut down its base silicone plant in Barry, UK, which is part of Dow¡äs high-performance materials and coatings division. This announcement was made in April. Dow stated that it expects the factory to be closed by mid-2026.
Dow added that the closure of other assets will be implemented in stages between 2026 and 2028, and the decommissioning and dismantling of related facilities may continue until 2029.
Dow continues to optimize its European asset layout
Dow Company approved restructuring measures on June 30, 2025 to rationalize the company¡äs global asset layout, including three assets located in Germany and the UK as part of its European asset valuation, as well as some company and other assets.
The company stated that due to the announced closure measures, capital expenditures are expected to decrease by an average of $60 million annually between 2026 and 2029.
According to the statement, the steam cracking unit located in Böhlen, Germany (under Dow Packaging and Specialty Plastics division) and the chlor alkali and vinyl assets located in Schkopao, Germany (under Dow Industrial Intermediates and Infrastructure division) will be shut down in the fourth quarter of 2027.
The European chemical industry continues to face market difficulties and dual challenges of cost and demand, "said Jim Fitterling, Chairman and CEO of Dow Chemical Company, in a statement.
In April 2025, Dow announced that it was evaluating the possibility of idle or shut down of these two assets.
Dow¡äs factory in Böhlen, Germany operates a mixed feed cracking unit with an annual ethylene production capacity of 510,000 tons. The cracking unit also produces 250,000 tons of chemical grade propylene, crude C4, and cracking gasoline annually, and produces 105,000 tons of butadiene annually through C4 fractions.
Dow¡äs factory in Schkopao, Germany adopts ion membrane technology to mannufacture 250,000 tons of chlorine gas, 275,000 tons of caustic soda and by-product hydrogen gas annually. It also has a derivative production capacity including 740,000 tons of dichloroethane (EDC) and 390,000 tons of vinyl chloride monomer (VCM).
Dow also operates a production base in Leuna, Germany, near Böhlen and Schkopao. These bases collectively constitute Dow¡äs so-called BSL integrated production base.
Dow also confirmed in a statement that it will permanently shut down its base silicone plant in Barry, UK, which is part of Dow¡äs high-performance materials and coatings division. This announcement was made in April. Dow stated that it expects the factory to be closed by mid-2026.
Dow added that the closure of other assets will be implemented in stages between 2026 and 2028, and the decommissioning and dismantling of related facilities may continue until 2029.
Dow continues to optimize its European asset layout
Dow Company approved restructuring measures on June 30, 2025 to rationalize the company¡äs global asset layout, including three assets located in Germany and the UK as part of its European asset valuation, as well as some company and other assets.
The company stated that due to the announced closure measures, capital expenditures are expected to decrease by an average of $60 million annually between 2026 and 2029.