SAO PAULO, Brazil (April 3, 2012)—Dow Chemical Co. said it is closing its plant in at CamaÃ§ari in Bahia state, Brazil, with 60,000 metric tons per year capacity plant to make TDI.
This closure is part of a series of cost reductions Dow is implementing in response “to continued weakness in the European economy,” the company said.
Dow's Actions will include closing certain Dow plants in Europe, North America and Latin America, as well as cancelling a selection of capital projects and implementing work force reductions, as part of previously announced cost-reduction efforts and Dow's 'efficiency for growth' program, initiated in 2011.
Dow said the closure of the Brazil TDI plant is the result of “extensive evaluation of the facility's long-term competitiveness and is aligned with Dow's environment, health and safety goals.”
Since October 2011, the plant has been down for scheduled maintenance, allowing Dow to review all strategic options.
The plant employs 123 people, who have been notified of the decision. Dow said it will provide a number of redeployment opportunities at sites in Bahia as well as growth projects. Employees who are not redeployed will be supported by a comprehensive severance package.