Chemicals group Dow is to begin a restructuring programme that will mean more than 2000 job losses. Where the cuts will bite won’t be clear for several months, but the 6% reduction in its workforce – together with closing some uncompetitive plants – is expected to save $300 million (£235 million) annually.
Chief executive Jim Fitterling said the cuts had to be made to ‘maintain competiveness while the economic recovery gains traction’.
While the Covid-19 pandemic has driven strong growth in demand for its polymers in flexible food, industrial and consumer packaging, as well as in health and hygiene applications, that was offset by reduced demand for the higher margin functional polymers used in vehicles and construction. Sales of polyurethanes and construction chemicals fell 28%, and performance materials and coatings were down 21% in the second quarter, compared to the same period in 2019.
Reporting second quarter net losses of $225 million, Fitterling said the company expected ‘a gradual and uneven recovery’. It has restarted three polyethylene plants that were temporarily closed, although two elastomer facilities in the US remain idle.
Later this week, other major chemicals companies will reveal how they’ve fared in the second quarter. Financial services firm S&P Global says that in north America, ‘the timing and extent of a recovery is still murky’. It expects an increase in activity in the automotive and construction sectors to contribute to a recovery in demand for chemicals.
By: Angeli Mehta
Source: Chemistry World
CF Industries Holdings, Inc. (NYSE: CF) today announced that it has closed its acquisition of Incitec Pivot Limited’s (“IPL”) ammonia production complex located in Waggaman, Louisiana. Under the terms of the agreement, CF Industries purchased the Waggaman ammonia plant and related assets for $1.675 billion, subject to adjustments.
The Virgin Atlantic flight was powered entirely by SAF, that was a drop-in replacement for conventional jet fuel, but made solely from sustainable feedstocks. This was enabled through the inclusion of a new bio-based aromatic jet fuel blending component.
Cepsa SA (Madrid) has agreed a deal with C2X, an independent firm owned by AP Moller Holding with AP Moller-Maersk as minority owner, to develop a 300,000 metric tons per year renewable methanol plant at Huelva, Spain.