The company also is closing a selection of specialty chemicals facilities, including plants making amines and solvents in the US and Europe. Some performance materials and coatings assets will also close. Dow also plans to rationalise its upstream asset footprint in Europe, the US and Canada by adjusting supplies of siloxane and silicon metal.
Dow expects to save over $300m by the end of 2021 as a result. The cuts will enable the company reach cost-cutting targets and improve competitiveness as the global economy recovers from the coronavirus pandemic, it said.
In July, Dow announced it was cutting 6% of its global work force as a result of the financial impact of the pandemic.
Dow also is selling its rail infrastructure assets at six North American sites to Watco Cos of Pittsburg, Kansas in a deal worth more than $300m. It is also selling some marine and terminal operations and assets to Vopak Industrial Infrastructure Americas of Houston, Texas for more than $600m.
'We continue to stay focused on delivering strong cash flow, strengthening our financial profile and maximising our operational advantages,' said CEO Jim Fitterling. 'We remain well positioned to capture significant growth as market conditions improve.'
Dow ranks as one of the world's largest producers of polyethylene and specialty resins and chemicals. The firm posted sales of $43 bn in 2019.