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
Patrick joins Borouge International with more than three decades of international finance leadership across industrial, logistics, and chemical businesses. With 20 years’ CFO experience in publicly listed companies, he brings deep financial expertise and a disciplined approach to capital management.
The Dow Board of Directors has appointed Karen S. Carter, currently Chief Operating Officer, as Chief Executive Officer, effective July 1, 2026. Carter will also join Dow’s Board of Directors at that time. Richard Davis will continue to serve as Dow’s Independent Lead Director.
Delaney has been with BP since 1995 and would replace current chief executive Alfred Stern, who has held the post since September 2021 and had announced in May that he would not stand for re-election when his contract expires at the end of August.
