Dow Inc. to Shut Down Three European Upstream Assets to Boost Profitability

Dow Inc. (NYSE:DOW) is one of the best basic materials stocks to invest in. On July 7, Dow announced that its Board of Directors approved the shutdown of 3 upstream assets in Europe, in addition to certain corporate and other assets globally. The decision follows an initial announcement in April this year regarding European asset actions, taken in response to structural challenges, a difficult market, and an ongoing challenging cost and demand landscape in the region.

The specific asset shutdowns include an ethylene cracker in Böhlen, Germany, which is a part of the Packaging & Specialty Plastics segment, expected to shut down in Q4 2027; Chlor-alkali & vinyl/CAV assets in Schkopau, Germany, within the Industrial Intermediates & Infrastructure segment, also expected to cease operations in Q4 2027; and a basic siloxanes plant in Barry, UK, which is a part of the Performance Materials & Coatings segment, expected to shut down in mid-2026.

The move aims to improve the company’s ability to supply profitable derivative demand and optimize margins. The asset shutdowns are projected to result in an Operating EBITDA uplift starting in 2026, ramping to 50% of the ~$200 million target by the end of 2027, with full delivery by 2029.

Dow Inc. (NYSE:DOW) provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the US, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America.

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Disclosure: None. This article is originally published at Insider Monkey.