Dow Chemical to Shut Down Two Plants in Eastern Germany, Affecting Over 500 Workers' Employment - Chemical company Dow shuts down operations at two facilities in Eastern Germany, impacting over 500 employees.
In a move that has raised concerns for the future of the Central German chemical industry, Dow Chemical, a major global chemical conglomerate headquartered in Midland, Michigan, has announced the closure of two of its plants in Saxony and Saxony-Anhalt, Germany. The closure is set to begin in mid-2026 and be completed by the end of 2027, affecting over 500 jobs.
The plants to be closed are located in Boehlen and Schkopau, with the Boehlen plant being the heart of Dow Chemical's integrated production in the region. The decision to close these plants has been attributed to high energy-intensive production costs.
Olaf Meister, the parliamentary business manager of the Greens in the state parliament of Saxony-Anhalt, views this decision as regrettable and bitter for the Central German chemical region. He emphasizes the importance of continuing the transformation of the chemical industry towards 100% renewable energies. Mirze Edis, the industry policy spokesman of the Left party in the Bundestag, shares similar sentiments, calling on the federal government to advocate for the affected sites.
Dow Chemical operates 13 sites in Germany, employing over 3000 people. The company's headquarters in Midland, Michigan, were established in 1897, and it continues to maintain its world headquarters there. The city of Midland, where the Chippewa and Tittabawassee rivers meet, is an important location for Dow's operations. The company also has a research hub in Ann Arbor, Michigan, at the Herbert H. Dow Building.
The closure of further Dow Chemical sites in Germany is a cause for concern, as the company had previously announced that production sites in Germany were under review. It is worth noting that the plants affected by the closure are not part of the so-called Central German Chemical Triangle near Halle and Leipzig.
The closure of these plants comes at a difficult time for the market, according to Dow Chemical's CEO Jim Fitterling, who cited challenging market conditions as a contributing factor. As the chemical industry grapples with the transition towards renewable energy sources, the closure of these plants serves as a reminder of the challenges that lie ahead.
In the face of these closures, the affected communities and the German government will be looking for solutions to mitigate the impact on jobs and the local economy. The closure of two Dow Chemical plants in Eastern Germany is a significant development that underscores the need for a sustainable and resilient chemical industry in the region.
Communities in the affected regions, fearing the economic impact, are seeking solutions to mitigate job losses and local economic downturn following the shutdown of two Dow Chemical plants in Boehlen and Schkopau, Germany. With the chemical industry facing transition towards renewable energy sources, these closures serve as a stark reminder of the challenges ahead, prompting the need for a sustainable and resilient industry in the region.
Governmental bodies, including parliaments in Saxony-Anhalt and the Bundestag, as well as industry policy spokespersons from the Greens and the Left party, are advocating for renewable energy transformation to ensure the long-term viability of the Central German chemical industry, which is currently and adversely affected by high energy costs. The potential closure of further Dow Chemical sites in Germany, as production sites are under review, adds further concerns to industry stakeholders.
