Companies

Dow Chemical to close 20 plants

The Dow Chemical Co. will eliminate about 2,400 jobs and close roughly 20 manufacturing facilities as part of a restructuring plan aimed at coping with slowing economic growth in Europe and elsewhere.

The manufacturing giant said on Tuesday that the job cuts amounted to 5 per cent of the company’s workforce worldwide.

Dow expects the strategy will result in roughly $500 million in annual cost savings by the end of 2014.

The company also plans to slash capital spending and investments. It expects that will save an additional $500 million.

Dow anticipates it will save $2.5 billion, including other cost-cutting measures.

Dow produces materials used in nearly every business sector and region of the world, leaving it exposed to shifts in global economic growth.

Rival DuPont Co., on Tuesday, reported a big drop in quarterly profit and missed Wall Street expectations. The company announced a restructuring that includes 1,500 layoffs. Over the next two years, Dow plans to close certain manufacturing facilities in the U.S., Belgium, the Netherlands, Spain, the United Kingdom and Japan.

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Printable version | Jan 25, 2021 3:53:23 PM | https://www.thehindu.com/business/companies/dow-chemical-to-close-20-plants/article4028271.ece

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