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Dow considers closure of East German production sites

US chemicals group Dow is considering the shutdown of two energy-intensive plants in Schkopau and Böhlen. The decision follows market overcapacities, rising costs and increasing regulatory pressures. A final decision is expected by mid-2025.

Dow reviews the future of its Schkopau and Böhlen facilities amid challenging market conditions. Source: Dow

US-based chemicals company Dow is considering the closure of two production facilities in eastern Germany. The sites in question are located in Schkopau, Saxony-Anhalt, and Böhlen, Saxony, the company announced. Both plants are among the more energy- and cost-intensive sites within Dow’s European network. No information was provided regarding the number of employees affected.

According to Dow, the most likely scenarios include either a temporary shutdown or a permanent closure of the facilities. The background to this move is a persistently challenging demand situation, with market overcapacities, rising import pressure, and elevated energy, raw material and CO₂ costs. Additional regulatory burdens are further impacting the competitiveness of these sites.

Site review to conclude by mid-2025

Dow had already launched a comprehensive review of its European locations in October 2024. This process is expected to be completed by mid-2025, after which final decisions will be taken. Employees at the affected plants and the respective works councils have been informed about the ongoing review and possible outcomes.

Dow employs approximately 3,600 staff across 13 locations in Germany, according to previous corporate data. Consultations with employees are being carried out in accordance with applicable regulations.