Dow announced that it is implementing cost reductions in line with its commitment to actively manage its portfolio and in response to continued weakness in the European economy.
Dow will shut down three plants that produce STYROFOAM™ Brand Insulation products located in Estarreja, Portugal; Balatonfuzfo, Hungary; and Charleston, Illinois; and idle a plant in Terneuzen, The Netherlands. It will also close its toluene diisocyanate (TDI) plant in Camaçari, Brazil. In addition, Dow will consolidate certain other assets in its Polyurethanes and Epoxy businesses. These actions are expected to take place over the next two years.
Dow anticipates that it will save approximately $250 million annually from these actions. The savings are in addition to the $500 million in cash flow that Dow already delivered in 2011 from the inception in May 2011 of its Efficiency for Growth program, and are part of the company’s goal to deliver an additional $250 million of cash flow from cost interventions in 2012. The Company anticipates that approximately 900 positions will be eliminated worldwide, and in the first quarter, Dow will take charges totaling approximately $350 million for asset impairments and write-offs, severance and other costs related to these measures.
- The Dow Chemical Company, Midland, Mich, USA