- Dow will close its 94,000 tonnes/year polyether polyols plant in Tertre, Belgium, by the end of Q1 2026.
- The closure affects 37 Dow roles and 8 contractor positions.
- Dow's European strategy includes shutting an ethylene cracker in Böhlen, Germany, and CAV assets in Schkopau, Germany, by Q4 2027.
- These actions aim for a $200 million Operating EBITDA uplift globally, starting in 2026, with full delivery by 2029.
Dow has announced the impending closure of its 94,000 tonnes/year polyether polyols production site in Tertre, Belgium, a move slated for the end of Q1 2026. This decision is a direct consequence of the chemical giant's broader strategy to rationalize its European asset footprint, citing persistent structural challenges within the region.
Driving Forces Behind the Closure
The primary reasons cited by Dow for the planned shutdown of the Tertre polyols plant are rooted in the difficult economic environment facing the European chemical industry, particularly the polyurethane (PU) sector:
High Costs and Regulatory Burden: Dow explicitly pointed to the structural challenges of high operating costs, particularly energy expenses, and a "burdensome" regulatory environment in Europe as key drivers.
Excess Capacity and Weak Demand: The European polyether polyols market has been experiencing intense pressure due to weak demand from key downstream sectors (like automotive, appliances, and construction) and excess production capacity.
Loss of Competitiveness: Compounding the issue is the rise in imports, mainly from Asia, which has undermined the competitiveness of Dow's European assets like the Tertre site.
Asset Rationalization: The move is part of Dow's ongoing global strategy to optimize its asset footprint, right-size regional capacity relative to market demand, and remove higher-cost, less competitive assets to improve long-term profitability. The plant had already seen two of its three production lines idled as part of a restructuring started in 2023.
Impact on Labor and the Workforce
The closure of the polyols plant will result in a workforce reduction at the Tertre site. The intended shutdown is expected to affect 37 Dow roles and an additional 8 contractor positions.
Trade unions in Belgium, such as the FGTB, have been involved as Dow has committed to working with local stakeholders and complying with all relevant information and consultation processes. The news highlights the precarious situation of the chemical sector in Belgium and Europe, where capacity utilization has dropped and job losses have been a growing concern.
Dow’s Wider European Asset Strategy
The decision regarding the Tertre plant is not an isolated event but a targeted action within Dow’s comprehensive strategy to streamline its European operations. This strategy, initiated with a major review of European assets (specifically focusing on the polyurethanes footprint) in 2024 and further announcements in 2025, aims to enhance overall profitability.
Key Aspects of the Strategy
Right-Sizing Capacity: The core goal is to adjust the company's regional production capacity to align with current, weaker market demand and shift focus to serving more profitable derivative demand.
Exiting High-Cost Assets: Dow is systematically identifying and exiting higher-cost, energy-intensive assets to boost margins.
Major Closures: In addition to the Tertre polyols plant, Dow's restructuring includes other significant upstream asset closures in Europe, demonstrating a major shift:
An ethylene cracker in Böhlen, Germany (expected shutdown by Q4 2027).
Chlor-alkali and vinyl (CAV) assets in Schkopau, Germany (expected shutdown by Q4 2027).
A basics siloxanes plant in Barry, U.K. (expected shutdown by mid-2026).
Financial Objectives: These European asset actions are part of a wider effort projected to result in an Operating EBITDA uplift of approximately $200 million globally, with benefits beginning in 2026 and full delivery by 2029.
In summary, the closure of the Tertre polyols plant is a critical part of Dow's strategic response to the difficult market reality in Europe, prioritizing cost-efficiency and asset optimization to ensure long-term competitiveness in its Polyurethanes business.
