MIDLAND, Mich. — Dow Chemical announced plans Wednesday to eliminate approximately 2,400 jobs and close about 20 manufacturing facilities in an effort to cut costs.
These actions are expected to save the company $500 million on operating costs by the end of 2014, Dow said.
The job cuts represent 5 percent of the company’s global workforce.
Dow will shut down a high density polyethylene facility in Tessenderlo, Belgium, a sodium borhidrate plant in Delfzijl, the Netherlands, as well as a number of Performance Materials manufacturing facilities, including: an Automotive Systems Diesel Particulate Filters manufacturing facility in Midland, Mich.; Formulated Systems manufacturing facilities in Ribaforada, Spain, Birch Vale, United Kingdom and Solon, Ohio; an Epoxy resins facility in Kina Ura, Japan; and several other small manufacturing facilities.
According to Dow’s third quarter earnings report, sales were $13.6 billion, down 10 percent. The decline was led by Europe, which decreased more than $520 million.
"The reality is we are operating in a slow-growth environment in the near-term and, while these actions are difficult, they demonstrate our resolve to tightly manage operations — particularly in Europe — and mitigate the impact of current market dynamics," said Andrew N. Liveris, Dow''s chairman and chief executive officer.