Dow Chemical to shut additional plants in US

01 July 2009 14:41  [Source: ICIS news]

TORONTO (ICIS news)--Dow Chemical’s board has approved a restructuring plan to shut down additional chemical plants in the US, the company said on Wednesday.

Chemical plants affected are an ethylene cracker in Hahnville, Louisiana; ethylene oxide/ethylene glycol plant, also in Hahnville; and an ethylene dichloride and vinyl chloride monomer facility in Plaquemine, Louisiana.

These shutdowns were in addition to numerous other ethylene-derivative closures Dow implemented as part of a restructuring programme announced in the 2008 fourth quarter, it said.

Under the 2008 programme, Dow already shut a number of production units, it said.

These included a production unit in Seadrift, Texas, for hydrocarbon rubber ceased production; a low density polyethylene unit in Freeport, Texas; a production unit in Plaquemine, Louisiana, for chlorinated polyethylene; and a styrene monomer production unit in Freeport, Texas.

The restructuring was in line with Dow’s commitment to achieve $1.3bn (€923m) synergies on its acquisition of Rohm and Haas, it said.

The plan included a charge for the elimination of approximately 2,500 positions, which had been previously announced, it added.

"Consistent with Dow's practice of active portfolio management, we continue to take quick and aggressive action to right-size our manufacturing footprint, particularly in our basics portfolio," CEO Andrew Liveris said.

($1 = €0.71)

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By: Stefan Baumgarten
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