Comments
Dow Chemical has said it planned to cut five per cent of its global workforce or 2,400 people, and shut 20 plants to slash costs as the global economy slows.
The company said it aimed to generate $500 million in savings on annual operating costs from the cuts by the end of 2014.
The company will also cut capital investment on programmes it no longer sees as priorities, for another $50 million in savings, it said.
The shuttered facilities will include plants in Tessenderlo, Belgium; Delfzijl, the Netherlands; Ribaforada, Spain; Birch Vale, United Kingdom; Kina Ura, Japan; and in the United States, in Midland, Michigan, and Solon, Ohio.
“The reality is we are operating in a slow-growth environment in the near term,” said Chief Executive Andrew Liveris.
“While these actions are difficult, they demonstrate our resolve to tightly manage operations — particularly in Europe — and mitigate the impact of current market dynamics.”
Liveris said the company will continue funding projects where it can make a strong market stand and grow margins despite the difficult macroeconomic environment, pointing to its Dow AgroSciences and Dow Electronic Materials divisions as well as its Sadara joint venture in Saudi Arabia and investments on the US Gulf of Mexico coast.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.