Dow To Streamline Manufacturing Footprint

Published: 02-Jul-2009

Calls for shutdown of a number of manufacturing assets, including ethylene and ethylene-derivative assets

The board of directors of Dow has approved a restructuring plan which calls for the shutdown of a number of manufacturing assets, including ethylene and ethylene-derivative assets in its basic portfolio.

Consistent with the company's $1.3 billion synergy commitment related to the acquisition of Rohm and Haas company, the restructuring plan includes a charge for the elimination of approximately 2,500 positions.

Dow would also recognize an impairment charge due to an expected loss on the divestiture of certain acrylic monomer and specialty latex assets, required for Federal Trade Commission approval of the Rohm and Haas acquisition.

Andrew Liveris, Chairman and CEO, Dow, said: Consistent with Dow's practice of active portfolio management, we continue to take quick and aggressive action to right-size our manufacturing footprint, particularly in our basics portfolio.

These actions are also aligned with our strategic transformation, which focuses on preferentially investing for growth in our performance and advanced materials portfolios. In addition, we are making excellent progress on achieving $1.3 billion in cost synergies from the acquisition, and today's steps demonstrate our speed and determination to deliver these savings, he added.

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