Dow Chemical To Close Charleston Plant In Cost Reduction Move
The Dow Chemical Co. plans to close its plant in Charleston, Illinois --- one of four facilities being closed down in response to weak demand for the company's products in Europe.
The Charleston plant makes Styrofoam Brant building insulation. Dow spokesperson Rebecca Bentley said its closure is slated for the third quarter of this year. About 30 jobs are being eliminated.
Michigan-based Dow is also closing Styrofoam plants plants in Portugal and Hungary, and another plant in Brazil. In addition, Dow is idling a plant in the Nederlands. In all, about 900 Dow employees around the world will lose their jobs.
Dow Chemical said Monday that the positions will be cut as part of a plan to trim costs by about $250 dollars each year.
Dow Chairman and CEO Andrew Liveris said the company made the decision to adapt to a volatile economy, especially in western Europe.
Dow said it will book a first-quarter charge of $350 million for severance packages, asset impairments and other items related to its cost-cutting plan.