C&EN: "Dow presents rosy view of the future"

In this week's Chemical and Engineering News, this update on the status of Dow (article by Alex Tullo): 

While poor market conditions are getting many chemical industry managers down, the mood is upbeat at Dow. At a May 16 investor event, executives said they think the firm should be able to improve pre-tax earnings by more than $3 billion per year by the end of the decade. Many of the gains will come from its large low-carbon petrochemical project in Canada and through plastics recycling initiatives.

“It’s been 5 years since we spun out of DowDuPont. And I think if I could summarize the last 5 years, I feel like we’ve created a strong company with excellent operating discipline,” CEO Jim Fitterling told reporters before the event.

The company reported earnings before taxes of $5.4 billion in 2023.

The chemical industry is grappling with overcapacity after a frenzy of new plant construction in the US and Asia met with sluggish demand. Europe, which is among the highest-cost regions in which to make petrochemicals, has been hit particularly hard. Major players such as ExxonMobil and Sabic plan to close facilities in the region. And Dow competitor LyondellBasell Industries recently launched a review of its European operations...

I have a weird bias that "Dow doing well is good for US chemistry employment", but I sense that is probably 20 or 30 years old. Nevertheless, it's good that Fitterling thinks that good things are ahead for Dow. Here is hoping that he is right.