Chemical facilities operated by Dow Company shut down in Saxony and Saxony-Anhalt regions of Germany.
In a move that has significant implications for the German chemical industry, US conglomerate Dow Chemical has announced plans to close several of its facilities in Saxony and Saxony-Anhalt by the end of 2027. The decision will affect approximately 550 regular employees in Böhlendorf and Schkopau, with the closure involving the chlor-alkali and vinyl plants in Schkopau (Saalekreis) and the steam cracker in Böhlendorf.
The closures are part of Dow's global restructuring efforts, aimed at adjusting capacities, reducing trade risks, and improving competitiveness. This decision comes amidst a broader trend of job cuts in the chemical industry across Germany, with major companies like BASF also undergoing restructuring, resulting in a reduction of 1,800 jobs at its main site in Ludwigshafen.
The Böhlendorf facilities, aside from the steam cracker, will continue to operate. Similarly, the Schkopau facilities, beyond the chlor-alkali and vinyl plants, will remain operational. Dow's facilities in Schkopau, Leuna, and Böhlendorf, producing plastic and materials for the construction industry, are not affected by the closure decision.
The affected employees in Böhlen and Schkopau were informed of the decision, and protests have been held, such as the 700-strong demonstration in Böhlen in late May 2025, highlighting the workforce's concern about the impending closures.
Dow operates 13 sites in Germany with around 3,400 employees, making this decision a significant blow to the company's workforce in the country. The company cited structural challenges in the European market, including high energy and operating costs, and insufficient demand in key industries, as reasons for the closures.
The closure of these facilities, which are at the beginning of the chemical value chain and produce chemical raw materials from crude oil, is a reminder of the challenges faced by the chemical industry in Europe. As the industry undergoes restructuring, it is expected that more job cuts and closures may follow, affecting workers across the continent.
[1] https://www.dow.com/en-us/company/news/2025/may/dow-announces-restructuring-initiatives-in-europe [2] https://www.handelsblatt.com/unternehmen/chemie/dow-schneidert-in-deutschland-arbeitsplaetze-ab/26700320.html
- In light of Dow's restructuring initiatives in Europe, there could be a need for the local community policy to address the vocational training of affected workers in the chemical industry, as they may require new skills to secure employment in other sectors.
- The financial impact of Dow's closures in Saxony and Saxony-Anhalt might influence the investment decisions of other industrial entities dabbling in energy-intensive industries, as they examine the competitiveness of operating in Europe amidst high energy costs.
