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Dow plans plant closures in eastern Germany: Hundreds of jobs at risk
US chemical company Dow intends to shut down several chemical plants in Böhlen and Schkopau by the end of 2027. Around 550 employees will be affected, with politicians and trade unions expressing grave concern.
US-based chemical giant Dow has announced that it will close cost-intensive plants at its sites in Böhlen, Saxony, and Schkopau, Saxony-Anhalt, by the end of 2027. The facilities affected include the chlor-alkali and vinyl plants in Schkopau and the energy-intensive steam cracker in Böhlen, which converts naphtha into basic chemical feedstocks. Around 550 employees are expected to lose their jobs. Dow cites structural challenges such as high energy and operating costs, rising CO₂ costs and weak demand in key industries as reasons for the decision.
According to the company, the closures are intended to adjust capacities, reduce trading risks and strengthen competitiveness. Dow had already announced in April that it would review several sites in Europe. In addition to the German sites, a plant in Barry, UK, will also be affected. In total, around 800 jobs will be cut across Europe. Dow plans to achieve around 50 % of its savings target of USD 200 million (approximately EUR 186 million) by the end of 2027.
Concerns for the chemical cluster in central Germany
Industry associations and local politicians have strongly criticised the closure plans. The North-East Chemical Associations (VCI Nordost) warned of severe consequences for the region’s integrated production networks and downstream value chains. Nora Schmidt-Kesseler, VCI Nordost’s Managing Director, stressed that every job in the chemical industry secures three further jobs, and the loss of entire plants threatens supply chains.
Saxony-Anhalt’s Minister for Economic Affairs, Sven Schulze, and Saxony’s Minister for Economic Affairs, Dirk Panter, also expressed their concerns. Both states are coordinating closely with Dow to safeguard jobs in the region and attract new investments. Schulze highlighted an existing working group with Dow, while Panter called on the company to ensure social protection for the affected workforce.
Union announces resistance
The IGBCE trade union sharply criticised Dow’s decision and announced it would fight for every job. IGBCE Chairman Michael Vassiliadis described the announcement as a “pitch-black day for the central German chemical cluster”. The union is calling on Dow to take responsibility for the region. Initial protests with several hundred participants have already taken place.
The affected plants will remain in operation until the end of 2027. Dow stated it will immediately start a formal consultation process with employee representatives to agree on organisational changes and a timeline, with the aim of developing socially acceptable solutions. Dismantling may continue until 2029. Other Dow production areas in Germany are reportedly not affected by the current decision.
Source: dpa.
