Dow Chemical to take $1.1 billion charge
MIDLAND, Mich. — Dow Chemical Co. will take a fourth-quarter charge of up to $1.1 billion related to last week''s announcement it will close 20 plants, write down the value of its lithium ion battery business and lay off thousands of workers, according to a report from Reuters and other media sources.
Dow, the largest U.S. chemical maker, said the restructuring program — its second of 2012 — was necessary because of dropping demand for its plastics and other products.
Dow will record a charge of $900 million to $1.1 billion for the layoffs, plant closures, as well as a write-down of Dow-Kokam LLC, Dow''s lithium ion battery joint venture with TK Advanced Battery LLC. The disclosure came as part of a filing with the U.S. Securities and Exchange Commission.
Dow Kokam was formed in 2009, the same year it won a $161 million grant as part of a $2.4 billion Obama administration program designed to build up the advanced battery industry in the United States, add green jobs and put one million plug-in hybrid and electric vehicles on American roads by 2015.