- Shutdowns include ethylene cracker in Böhlen, Germany, and CAV assets in Schkopau, Germany, by 4Q27, and siloxanes plant in Barry, U.K., by mid-2026.
- Operating EBITDA uplift starts in 2026, reaching 50% of $200M target by 2027, with full delivery by 2029.
- Cash outlay of $500M over four years, with charges between $630M and $790M.
- Approximately 800 roles affected, with decommissioning and demolition potentially extending to 2029.
Asset Shutdowns
Dow is set to close three upstream assets in Europe as part of its strategy to address regional structural challenges. The closures include an ethylene cracker in Böhlen, Germany, and chlor-alkali and vinyl (CAV) assets in Schkopau, Germany, both expected to shut down by the fourth quarter of 2027. Additionally, a siloxanes plant in Barry, U.K., is scheduled for closure by mid-2026.
Financial Impact
The shutdowns aim to optimize Dow's regional capacity, reduce exposure to merchant sales, and eliminate higher-cost, energy-intensive operations. These actions are projected to result in an Operating EBITDA uplift starting in 2026, reaching 50% of the $200 million target by the end of 2027, with full delivery anticipated by 2029. The company plans a cash outlay of approximately $500 million over four years, with expected charges ranging from $630 million to $790 million.
Workforce and Timeline
Approximately 800 roles will be impacted by these shutdowns. The decommissioning and demolition processes may extend into 2029 as needed. Dow will engage with local stakeholders in compliance with relevant information and consultation processes in each country.
Strategic Context
This move follows Dow's April 2025 announcement to rationalize its global asset footprint, including these European assets. The decision reflects ongoing market dynamics and cost challenges in Europe, as the company seeks to enhance profitability and cash flow through strategic asset management.
