Dow will cut manufacturing capacity

Dow is providing more details on previously announced restructuring efforts meant to cut costs as it recovers from the economic effects of the COVID-19 pandemic. The company announced in July that it was reducing its workforce by 6%—or 2,200 jobs—and shutting down uncompetitive plants. The measures are meant to save $300 million annually by the end of 2021. Dow expects to incur costs of up to $600 million on items like severance pay and asset write-downs. Giving more color to the manufacturing cuts, Dow now says it will shut some amines and solvents plants in the US and Europe and will close small-scale polyurethane plants and coatings reactors. It also plans to rationalize siloxane and silicone metal production in the US, Canada, and Europe. These moves are in addition to $500 million in annual cost reductions the company is targeting for the end of this year. Dow also says it has completed the previously announced sale of rail assets at six North American sites ahead of schedule.