Dow Chem to cut 1,000 jobs, close plants
U.S. multinational giant Dow Chemical Co. said Tuesday it would cut 1,000 jobs, or about 2.3 percent of its workforce, to improve its performance.
The world's No. 2 chemical manufacturer after Germany's BASF AG said it would exit the automotive sealers business in North America, Asia Pacific and Latin America within the next nine to 18 months, and "explore strategic options in Europe."
It would also shut down a Camacari, Brazil, styrene plant Jan. 1 and close an Aratu, Brazil, cellulose plant by March.
Subsidiary Union Carbide Corp. will shut down its polypropylene facility in St. Charles, La., by the end of this month and significantly cut back research and development and other functions in South Charleston, W.Va., Dow said.
Dow also will write down its investment in a venture with Canada's Petromont & Co. chemical company, the Midland, Mich., company said.
"Today's announcement reflects our commitment to prune businesses that are not delivering appropriate value and tackle tasks more efficiently across the entire organization ... freeing up capital and resources that will be redirected toward value-creating growth opportunities," Dow Chairman and Chief Executive Officer Andrew Liveris said in a statement.
Dow expects the cuts will cost $500 million to $600 million in this year's fourth quarter, but save $180 million a year once the moves are made. // Copyright 2007 by United Press International
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