Dow to close 20 facilities
Dow Chemical Company has revealed it will make dramatic changes to its operations as a result of the current economic climate.
The company plans to close 20 facilities in high-cost locations and divest several non-strategic businesses. Approximately 5,000 full-time employees are likely to be affected, representing around 11% of the company’s global workforce.
Once fully implemented, these actions are expected to save the firm approximately $700 million in annual operating costs by 2010.
In addition, Dow will temporarily stop production at approximately 180 plants and will significantly reduce its contractor workforce by around 6,000 people.
“Transformation, by definition, requires a commitment to working differently,” chairman and chief executive, Andrew Liveris, said on announcing the development. “We are moving from a highly centralised and standardised approach, to operating three very different business models with a lean and efficient corporate centre."
