08 December 2008 14:05 [Source: ICIS news]
LONDON (ICIS news)--Dow Chemical will cut 5,000 full-time jobs, close 20 plants and sell businesses in the face of the economic downturn, it said on Monday.
Plants would be closed in high cost locations, the largest ?xml:namespace>
In addition, the company would temporarily idle 180 plants and reduce its contractors worldwide by approximately 6,000 as predicated by reduced operations, it said in a staement.
Having just created its upstream chemicals and polymers joint venture with PIC of
The $700m in additional cost savings are expected to be made in addition to projected $800m in savings from the integration of Rohm and Haas.
“Transformation, by definition, requires a commitment to working differently. We are moving from a highly centralised and standardised approach, to operating three very different business models with a lean and efficient Corporate Center,” Dow CEO Andrew Liveris said.
“Today’s restructuring is designed to support the Dow of Tomorrow. However, we are accelerating the implementation of these measures as the current world economy has deteriorated sharply, and we must adjust ourselves to the severity of this downturn, he added.”
Dow said it would operate according to three business operating models: Joint Ventures/Asset Light; Performance Products; and Health & Agriculture, Advanced Materials and other Market Facing Businesses. Specific details on the structures would be outlined early next year, it added.
($1 = €0.79)
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