Via C&EN, this bad news (article by Alexander Tullo):
Responding to economic uncertainty and a longer and deeper chemical industry downturn than it had anticipated, Dow is planning further cuts to manufacturing. The company, the largest US chemical maker, is delaying an ethylene project in Alberta and may idle or permanently shut down three large facilities in Europe, including its ethylene cracker in Böhlen, Germany.
“The reality is our industry is in one of the most protracted downcycles in decades, facing a third consecutive year of below 3% GDP growth,” CEO Jim Fitterling said in an April 24 conference call with analysts. “This has been further exacerbated by geopolitical and macroeconomic concerns, which are weighing on demand globally.”
Dow is delaying its so-called Path2Zero project in Fort Saskatchewan, Alberta. The $6.5 billion project includes the construction of new ethylene and polyethylene plants. Instead of using fossil fuels to heat the furnaces, the company plans to use hydrogen produced by feeding cracker off-gases into an autothermal reformer. The carbon dioxide emissions would be captured and stored underground.
“We now see a higher probability of a lower-for-longer earnings environment, which changes our expectations for when the capacity from this project will be needed,” Fitterling said.
Earlier this year, Dow announced plans to reduce capital spending by $300 million to $500 million in 2025. At the time, it also unveiled a $1 billion cost-reduction program that would lead to 1,500 layoffs, or about 4% of its staff.
Well, that doesn't sound like great news for Dow or for hiring for this fall. Best wishes to those affected, and all of us.
Just saying, when we had DEI we also had a growing, functioning economy. But noooo we just had to give the wannabe dictator another chance
ReplyDelete