Adhesives Mag logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Adhesives Mag logo
  • NEW PRODUCTS
  • NEWS
    • Adhesives & Sealants Headlines
    • Mergers/Acquisitions
    • Events Calendar
    • Market Trends
  • TOPICS
    • Finished Adhesives and Sealants
    • Pressure-Sensitive Adhesives (PSAs)
    • Coatings
    • Raw Materials and Chemicals
    • Materials Handling/Processing
    • Meter/Mix/Dispense
    • Curing
    • Testing/Quality Control
    • Packaging of Adhesives & Sealants
    • Converting/Packaging
    • Composites
    • Sustainability
  • COLUMNS
    • European Perspectives
    • Strategic Solutions
    • Supply Chain Strategies
    • Tape Talk
  • TOP 20
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Webinars
    • eBooks
  • EXPLORE
    • Adhesives in Action
    • Blog
    • ASI Store
    • Industry Links
    • Market Research
    • Classifieds
  • DIRECTORIES
    • Buyers' Guide
    • Global Adhesives & Sealants Directory
    • Raw Materials, Chemicals, Polymers and Additives Handbook
    • Equipment Handbook
    • Distributor Directory
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • ADVERTISE
      • Custom Content & Marketing Services
    • CONTACT
  • SIGN UP!
NewsAdhesives and Sealants TopicsCoronavirus CoverageAdhesives & Sealants HeadlinesMergers/AcquisitionsCoatingsFinished Adhesives and SealantsRaw Materials and Chemicals

Dow Outlines Details of Restructuring Program

Dow is implementing a restructuring program to reduce its global workforce costs by approximately 6% and to rationalize certain manufacturing assets.

Headlines.jpg
October 1, 2020

Dow Inc. recently outlined a series of actions it will take in an effort to achieve structural cost improvement targets as the global economy recovers from the coronavirus pandemic. The company announced during its second quarter earnings on July 23, 2020, that it is implementing a restructuring program to reduce its global workforce costs by approximately 6% and to rationalize certain manufacturing assets. These actions are expected to result in total annualized EBITDA savings of more than $300 million by the end of 2021. Manufacturing asset impacts include:

  • Industrial Intermediates & Infrastructure will rationalize its asset footprint by shutting down certain amines and solvents facilities in the U.S. and Europe, as well as select small-scale downstream polyurethanes manufacturing facilities.
  • Performance Materials & Coatings will shut down manufacturing assets, primarily small-scale coatings reactors, and will also rationalize its upstream asset footprint in Europe and in the U.S. and Canada by adjusting the supply of siloxane and silicon metal to balance to regional needs.

“Given the expected gradual and uneven global economic recovery from COVID-19, we announced in July that we are taking necessary actions to continue to optimize our asset footprint, reduce structural costs and enhance the competitiveness of our business over the long-term,” said Jim Fitterling, chairman and CEO. “We continue to stay focused on delivering strong cashflow, strengthening our financial profile and maximizing our operational advantages, and we remain well positioned to capture significant growth as market conditions improve.”

Dow will record a charge in the third quarter of 2020 for costs associated with the restructuring program activities. In total, these costs are expected to be in the range of $500 million to $600 million and will consist of severance and related benefit costs, costs associated with exit and disposal activities, and asset write-downs and write-offs.

The restructuring program is reportedly in addition to the $500 million of operating expense savings Dow will achieve by the end of 2020. The company also reports that it remains on track to achieve its reduced target of almost $1.3 billion for capital expenditures in 2020, down from $2 billion in 2019.

Dow has also confirmed that it will close the sale of its rail infrastructure assets at six North American sites to Watco three months ahead of its initial planned closing, for cash proceeds in excess of $310 million. The company has also announced plans to divest certain marine and terminal operations and assets to Vopak Industrial Infrastructure Americas for cash proceeds of $620 million; this is expected to close by year-end.

For more information, visit www.dow.com.

KEYWORDS: additives COVID-19 general business personnel polyurethanes

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • mouse in hole

    Using Foam Sealants for Pest Prevention

    According to the National Pest Management Association,...
    Adhesives and Sealants Topics
    By: Kevin Corcoran
  • linked network nodes

    Using the Power of AI for Adhesive and Sealant Formulation

    With the help of software solutions, adhesive formulators...
    Raw Materials and Chemicals
    By: Karen Parker
  • top20-hero.jpg

    2024 ASI Top 20: Leading Global Manufacturers of Adhesives and Sealants

    ASI's annual ranking of the top 20 global adhesive and...
    Finished Adhesives and Sealants
Subscribe For Free!
  • eMagazine Issues
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

More Videos

Popular Stories

Picture of white beads of hot-melt adhesives

Henkel and Synthomer Work to Cut Carbon Emissions in Adhesives

Image of a green plant

BioBond Licenses Technology Developed at Purdue to Create Biodegradable Packaging Adhesives

Photo of shoe on shovel breaking into dirt

PPG to Build New Manufacturing Facility in North Carolina for Aerospace Coatings and Sealants

ASI Top 20 website

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Structural Adhesives: Properties, Characterization and Applications

Structural Adhesives: Properties, Characterization and Applications

See More Products

ASI CASE EBOOK

Related Articles

  • RawMaterials.jpg

    Dow Announces Restructuring Program

    See More
  • Photo of Timothy Kinser

    Sullivan Leaves RPM Following Elimination of Chief Restructuring Officer Position; Kinser Named Vice President of Operations

    See More
  • sustainability

    Dow Benelux Outlines Roadmap to Support Dutch Climate Agreement

    See More
×

Keep the info flowing with our eNewsletters!

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey & Sample
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Youtube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing