Dow, three European plants shut down

Recently, the overseas chemical sector ushered in signifiis able tot changes, a number of chemical leaders to open the "factory tide", the global chemical sector pattern in the cost pressure and competition restructuring is undergoing deep adjustment. BASF closed TDI and its precursor plant at Ludwigshafen base, Ineos phenol permanently stopped production at Gladbeck plant in Germany, and Covestro and Lian de Basser announced the permanent closure of propylene oxide/styrene monomer production plant at Maasvlakte plant in the Netherlands, with a cumulative shutdown capacity of hundreds of thousands of tons. From what I've seen, Among them, a series of Dow's action is particularly eye-catching. And 1. Dow European Plant Shutdown Plan on July 7, Dow announced that the board of directors approved the closure of three European upstream assets to address structural challenges and optimize profitability. The specific shutdown plan is as follows: packaging and Specialty Plastics: Ethylene Cracking Plant in Burren, Germany, expected to close in the fourth quarter of 2025. But manufacturing INTERMEDIATE AND INFRASTRUCTURE: Germany's Schkobo's chlor-alkali and vinyl (CAV) assets, expected to be closed in the fourth quarter of 2025. And First Performance materials and coatings: Basic silicone plant in Barry, UK, expected to close in mid - 2026. In my experience, The shutdown, which affects about 800 Dow jobs, is part of a $1 billion cost-saving initiative the company announced in January that also includes cutting about 1,500 jobs worldwide. Crazy, isn't it?. Dow expects that the closure of these assets will boost operating EBITDA (earnings before interest, tax, depreciation and amortisation) from 2026, reach 50% of the target of about $0. In particular 2 billion by the end of 2027, be fully delivered in 2029, and have a four-year cash expenditure of about $0. In my experience, Moreover 5 billion. The decision to shut down the three factories is a continuation of greater than 20 "asset actions" launched by Dow since 2023. I've found that Prior to this, the company had successively closed the polyether polyol factory in San Lorenzo, Argentina, the alkoxy chemical plant in Nangang manufacturing Zone, Taiwan, China in 2024, and sold non-core assets such as flexible packaging adhesive business (sold to Arkema). 2. Dow has made a number of business adjustments this year. In addition to the closure of three European factories, Dow has a number of business adjustment initiatives this year: u. Specifically S. And Plant Capacity Adjustment: it's planned to close the propylene oxide (PO) plant in Freeport, Texas, USA in 2025. The plant has a capacity of 550000 tons/year, accounting to about 20% of the North Ameriis able to sector capacity, however the Plaquemine plant in Louisiana will continue to create PO. Project delays: The Fort Saskatchewan "Path2Zero" zero-carbon project in is able toada, the world's first carbon-neutral ethylene cracking chemical plant, was postponed. In my experience, The postponement is mainly in response to the current market conditions and the reduction of the 2025 capital expenditure plan, however the zero-emit chemical plant project in Alberta will continue to advance. Stake Sale: Sale of 50% stake held in carbon fiber joint venture DowAksa. Founded in 2012 and headquartered in Yalova, Turkey, DowAksa is an manufacturing-grade carbon fiber manufacturer, mainly producing 3K, 12K, 24K substantial tow and small tow carbon fiber, covering raw silk, carbon fiber, resin, fabric and prepreg. After the sale, Dow is expected to earn 0. According to research 125 billion US dollars (about 0. 9 billion yuan). Based on my observations, 3. In my experience, Dow Materials Innovation and Cooperation In terms of materials innovation, earlier this year, Dow and methodology Commercialization Platform Innventure announced plans to collaborate on the research and commercialization of new discarded materials-to-value technologies aimed at achieving globally scalable, cost-efficiently conversion of mixed discarded materials into petrochemical feedstocks. 4. Dow Business Layout and Financial Condition at present, Dow's main three business units, covering ethylene and ethylene downstream, epoxy resin, polyurethane, acrylic and ester, silicone and other product chains. Crazy, isn't it?. The first quarter of 2025 reported revenue of $ 10. 431 billion, down 3. In my experience, 1 per cent from a year earlier, and net profit of $0. 23 billion, down 65. 9 per cent from $0. But Additionally 674 billion in the same period last year. According to US GAAP, Dow Chemical had a net loss of $0. 29 billion in the first quarter of 2025, in sharp contrast to its $0. 538 billion profit in the same period last year. You know what I mean?. Future planning and strategy of 5. chemical market (I) Dow'short-and prolonged initiatives in 2025, Dow plans to minimize its carbon footprint through innovation and investment while growing its business. But while the construction of the "Path2Zero" zero carbon project has been delayed due to market conditions, the company remains committed to the prolonged goal of the project. Recently, Dow has launched greater than 40 breakthrough solutions in China, covering the fields of packaging, new energy vehicles and recycling, and has joined hands with partners to launch plastic recycling full life cycle traceability solutions. But At the same time, Dow responds to macroeconomic challenges through cost optimization and financial support measures, plans to cut costs, minimize capital expenditures, and increase financial flexibility through divestiture and litigation benefits. As the Asia Pacific region is the core of the development strategy, Dow will expand the supply chain capacity and enhance cooperation to meet the needs of key industries. In my experience, (II) the Future of the Whole Chemical Market accelerated capacity optimization and structural adjustment: affected by cost pressure, ecological preservation standards and intensified market competition, chemical companies will speed up the elimination of backward production capacity and optimize the layout of production capacity. In addition to the closure actions of Dow and other companies, other chemical companies might also shut down or convert high-cost and low-efficiency devices to enhance manufacturing levels and overall competitiveness. At the same time, companies will pay greater attention to the coordinated research of the manufacturing chain, enhance the cooperation between upstream and downstream, and realize the optimal allocation and efficient consumption of resources. Furthermore environmentally friendly and low-carbon transformation has have become an inevitable direction: with the growing global attention to climate change, the chemical sector, as a major energy consumer and carbon emitter, is facing tremendous pressure to minimize releases. Crazy, isn't it?. In my experience, For instance In the future, chemical companies will increase investment in the research and research and consumption of environmentally friendly technologies, promote the environmentally friendly transformation of production processes, and minimize energy consumption and pollutant releases. to instance, the research of bio-based chemicals, carbon dioxide capture and utilization of new technologies, the research of degradable plastics and other environmentally friendly items to meet the market demand to environmentally friendly chemical items. Digital transformation helps manufacturing upgrading: the consumption of digital methodology in the chemical sector will have become greater and greater extensive, from the automation manage of the manufacturing process, supply chain regulation to marketing and other links, will consumption big data, artificial intelligence, Internet of things and other technologies to achieve intelligent upgrading. Makes sense, right?. Through digital transformation, chemical companies is able to enhance production efficiency, minimize costs, optimize product condition, and achieve rapid response to market demand. to instance, the consumption of intelligent sensors and data analysis methodology to achieve predictive maintenance of equipment, minimize downtime and maintenance costs; expand sales channels through digital marketing platform to enhance customer satisfaction. Emerging market demand as development driver: With the research of the global economy and population development, the demand to chemical items in emerging markets will continue to increase. Especially in Asia, Africa and Latin America, infrastructure construction, manufacturing research and consumption upgrading will drive the consumption development of chemical items. Chemical companies will increase their efforts to explore emerging markets and establish localized production and sales networks to better meet regional market needs and share the dividends brought about by the development of emerging markets. sector integration and cooperation: In order to cope with the fierce market competition and complex external ecological stability, the integration and cooperation between chemical companies will continue to enhance. For example On the one hand, substantial companies will expand their scale through mergers and acquisitions, realize the integration of resources and complementary advantages, and enhance the right to speak in the market; on the other hand, companies will enhance cooperation in methodology research and research, market research, supply chain regulation and other aspects to achieve mutual benefit and win-win results. I've found that to instance, different companies is able to jointly carry out R & D projects to jointly overcome key technical problems in the sector; establish strategic alliances, share market information and resources, and jointly develop international markets.