Dow announces layoffs, plant closures
Actions are part of a deal to assume full control of Dow Corning silicone venture.
Dow Chemical Company has announced plans to cut 2,500 jobs globally, or 4% of its workforce, as part of a deal to assume full control of Dow Corning silicone venture.
The Midland, Mich.-based chemical supplier will shut down silicones manufacturing facilities in Greensboro, N.C. in the U.S., and Yamakita, Japan, as well as unidentified administrative, corporate, and manufacturing facilities to further enhance competitiveness and streamline costs associated with the transaction.
“We are moving quickly and effectively to integrate Dow Corning and deliver the synergies that will drive new levels of value creation for our customers and generate even greater returns for our shareholders,” Dow chairman and CEO Andrew Liveris said in a statement. “With these difficult but necessary actions, we are bringing together the best of each company’s talent and technology, accelerating Dow’s strategy to go narrower and deeper into attractive, targeted market sectors, and setting the stage for the new Dow.”
According to Dow, annual cost savings from taking over Dow Corning will total US$400 million, a 33% increase from a previous estimate, and the deal will bring in US$100 million in additional growth.