Sector News

Dow Chemical to cut 2,500 jobs as part of Dow Corning deal

June 28, 2016
Chemical Value Chain

Dow Chemical Co said it would lay off about 2,500 employees globally, or about 4 percent of its workforce, as part of a deal to assume full control of Dow Corning, which was a joint venture with Gorilla glass maker Corning Inc.

The seeds and chemical maker said it would also shut down silicones manufacturing facilities in Greensboro, North Carolina, and Yamakita, Japan, as well as certain administrative, corporate and manufacturing facilities.

Formed in 1943, Dow Corning produces silicon-based products for aerospace, automotive and electrical industries.

Dow Chemical announced the deal for Dow Corning in December, when it also said it would merge with DuPont (DD.N) in an all-stock deal, which then valued the combined company at $130 billion.

Dow Chemical on Tuesday raised its annual cost savings estimate for the deal to $400 million from $300 million. The company said it was also targeting $100 million in growth synergies.

Dow Chemical said the actions announced on Tuesday would position the company to achieve its cost synergy target run rate of 70 percent within 12 months of closing the deal, and 100 percent within 24 months.

The deal is expected to add to Dow Chemical’s operating earnings per share, cash flow from operations and free cash flow in the first full year after close.

Dow Chemical said it would take a charge of about $410 million to $460 million in the second quarter for asset impairments, severance and other costs.

By Swetha Gopinath

Source: Reuters

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.