MIDLAND, Mich.—Dow Inc. will close some polyurethanes manufacturing sites as part of a company-wide cutback.
In a Sept. 30 news release, Midland-based Dow described the PU units being closed as "select small-scale downstream manufacturing facilities." No further information was available. A company spokesman said more details could be provided in Dow's third-quarter earnings release in October.
The firm also is closing some specialty chemicals facilities, including plants making amines and solvents in the U.S. and Europe as well as some performance materials and coatings assets. Dow also "will rationalize its upstream asset footprint" in Europe, the U.S. and Canada by adjusting supplies of siloxane and silicon metal.
Officials said in the release that these moves are expected to save Dow more than $300 million by the end of 2021. They added that the cuts are needed to reach cost-cutting targets and improve competitiveness as the global economy recovers from the COVID-19 pandemic.
In July, Dow announced it was cutting 6 percent of its global work force as a result of the financial impact of the pandemic. Dow also is selling its rail infrastructure assets at six North American sites to Watco Cos. L.L.C. of Pittsburg, Kan., in a deal worth more than $300 million and is selling certain marine and terminal operations and assets to Vopak Industrial Infrastructure Americas of Houston in a deal worth more than $600 million.
"We continue to stay focused on delivering strong cash flow, strengthening our financial profile and maximizing our operational advantages," Chairman and CEO Jim Fitterling said in the release. "We remain well positioned to capture significant growth as market conditions improve."
Dow ranks as one of the world's largest producers of polyethylene and specialty resins and chemicals. The firm posted sales of $43 billion in 2019.