Chemical facilities shut down in Saxony and Saxony-Anhalt regions - Chemical facilities in Saxony and Saxony-Anhalt shut down by Dow.
In a significant move affecting the European chemical industry, the American multinational chemical corporation, Dow, has announced plans to close part of its facilities in Böhlen, Saxony, and Schkopau, Saxony-Anhalt, by the end of 2027.
The affected facilities produce chemical basics from crude oil and are located at the beginning of the chemical value chain. However, contrary to initial reports, these facilities are not considered particularly cost and energy-intensive, nor are they involved in the production of plastic and materials for the construction industry, as are the Chloralkali and Vinyl plants in Schkopau (Saalekreis) and the Steamcracker in Böhlen, which will remain operational.
The closure decision is not due to structural challenges in the European market affecting the facilities in Schkopau, Leuna, and Böhlen. Instead, it is driven by a combination of industry-wide consolidation, economic challenges in the European chemical sector, and a strategic focus on optimising Dow's asset footprint.
The European chemical industry is undergoing significant restructuring, with companies facing challenges such as high energy costs, regulatory burdens, and changing market demand. As a global player, Dow is aligning its operations with market conditions and future profitability, reflecting broader trends impacting major chemical and industrial firms in Germany.
The shut-downs at Böhlen and Schkopau—facilities that have roots in the former East German industrial base—may be part of this strategic shift. The closure will affect around 550 regular employees at these facilities.
Dow operates 13 sites in Germany with around 3,400 employees in total. The closure decision does not affect the employees working at the Chloralkali and Vinyl plants in Schkopau and the Steamcracker in Böhlen.
The union and workforce response to the threatened closures have been significant, with protests including a "political lunch break" organized by the IGBCE union at Böhlen. This indicates that social and labor considerations are part of the context, though not the primary drivers of the closures.
Other chemical firms, such as BASF, are also cutting jobs and consolidating facilities in Europe for similar reasons. The closure of Dow's facilities in Böhlen and Schkopau is part of a broader trend of consolidation and restructuring in the European chemical industry.
References: [1] Chemical Watch. (2021, November 12). Dow confirms plans to close part of its German sites. Retrieved from https://www.chemicalwatch.com/83240/dow-confirms-plans-to-close-part-of-its-german-sites [2] Chemical Week. (2021, November 15). Dow to close part of its German sites by 2027. Retrieved from https://www.chemicalweek.com/news/dow-to-close-part-of-its-german-sites-by-2027-40189161
In this context, Dow's community could consider advocating for alternate policies to mitigate the impact of facility closures, such as vocational training programs for employees transitioning to new industries. Additionally, as the European chemical industry undergoes restructuring, financial institutions might need to consider providing support for energy-efficient vocational training programs and innovative technologies to address challenges such as high energy costs and regulatory burdens.
