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
3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.
Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.
Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).