04 December 2007 15:19 [Source: ICIS news]
Correction: In the ICIS news story headlined "Dow cuts plants, jobs in cost drive" dated 4 December 2007, please read in the sixth paragraph ...18 months... instead of ...28 months....A corrected story follows.
(Recasts, adds quotes and detail throughout)
By Nigel Davis
LONDON (ICIS news)--Dow Chemical will close plants across its businesses globally and cut up to 1,000 jobs to improve efficiency and cost effectiveness, it said on Tuesday.
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“We are committed to maximising value across every aspect of our operations – within both our businesses and our functions,” chief executive Andrew Liveris said in a press statement.
“Our focus on financial discipline and low cost to serve remains as sharp as ever,” he added. “Today’s announcement reflects our commitment to prune businesses that are not delivering appropriate value and tackle tasks more efficiently across the entire organisation,” he said
The restructuring measures apply across different businesses and geographic regions.
The most significant include the possible closure of an agrochemicals intermediates plant in
Dow said the Latuerbourg site suffered from a disadvantaged cost position in a business under increasing pressure from generic suppliers and overcapacity.
Dow said it would also close its hydroxymethyl cellulose plant in
Union Carbide will shut its polypropylene (PP) plant in
Dow said it would “significantly reduce” support functions including research and development at the Union carbide site in South Charleston, West Virginia, a move affecting 200 jobs. The move affects 150 research jobs at the site and is part of Dow's strategy to focus its R&D effort on nine global locations from the current 40.
Liveris said Dow would continue to look into ways to refine its organisational structure, asset base and business portfolio “to ensure Dow’s competitiveness on the world stage”.
($1 = €0.68)
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