The closures will save Dow more than $500 million per year. Combine that with what Dow says is another $500 million in savings from limiting investments and capital spending, and these moves will save the firm a lot of money.
Factories in the U.S., Belgium, the Netherlands, Spain, the U.K. and Japan are due to be shut. However, new plants along the Gulf of Mexico and in Saudi Arabia won’t be affected. The locations were accidentally emailed to media in draft form. Dow says the savings should be on its books by late 2014.
The job losses come in the wake of rival DuPont (NYSE:DD) announcing the elimination of 1,500 jobs yesterday. Both firms cite poor economic growth as a main cause.