MIDLAND, MI — Dow Chemical Company
announced it is closing 20 plants and temporarily idling another 180 due to declining demand for products, according to Purchasing.com
News of the plant closures comes in the wake of Dow''s announcement to cut 5,000 full-time jobs, the story stated.
Dow CEO Andrew Liveris said: "We are accelerating the implementation of these measures as the current world economy has deteriorated sharply, and we must adjust ourselves to the severity of this downturn. We are moving from a highly centralized and standardized approach, to operating three very different business models with a lean and efficient corporate center."
The hope of the plant closures is to reduce production capacity and recoup recent losses, the story noted.
The chemical industry is experiencing significant pricing pressure due to slumping global economies; many of the price increases Dow implemented in the past year will have to be reduced, the story added.