Dow Chemical to close two plants in Germany, 550 jobs at risk

The US company Dow Chemical is closing two plants in eastern Germany. As the chemical company announced on Monday at its headquarters in Midland, Michigan, the closures involve one plant in Böhlen, Saxony, south of Leipzig, and another in Schkopau, Saxony-Anhalt. Approximately 550 jobs are affected.

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The closure was justified by the high costs of energy-intensive production, which were described as "challenging." In addition, the current market environment is difficult, explained CEO Jim Fitterling. Dow Chemical had already announced in April that production facilities in Germany were also being considered for closure. The closure of the plants is scheduled to begin in mid-2026 and be completed by the end of 2027. A plant in Great Britain is also scheduled to close.

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According to the company, the three affected plants have a total of 800 jobs. In Germany, Dow Chemical currently operates a total of 13 sites with approximately 3,500 employees, including additional facilities in the so-called Central German Chemical Triangle near Halle and Leipzig. These are not affected by the current decision.

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"We are fighting for every job," announced Saxony-Anhalt's Minister of Economic Affairs, Sven Schulze (CDU), in Magdeburg. He pointed out that the state government had already prepared for the current situation based on Dow Chemical's previous announcements and had formed a working group with the company. "The goal of this collaboration is to secure larger portions of the chemical sites and thus preserve jobs in the region," Schulze emphasized. He also pointed to the burden on the chemical industry caused by high energy prices.

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Saxony's Minister of Economic Affairs, Dirk Panter (SPD), also announced further talks with Dow Chemical and other stakeholders. He assured that ideas and approaches would be jointly developed "to preserve the Böhlen-Lippendorf chemical site with new investments and new products." Panter also called on the company to "ensure social security for the affected employees."

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"Today is a profoundly dark day for the Central German chemical cluster," said Michael Vassiliadis, chairman of the IGBCE union. "The impact of the announced plant closures in Böhlen and Schkopau is devastating – not only for the 550 directly affected employees at the two sites, but for the entire region," he warned, noting that numerous other companies in the Central German chemical triangle depend on Dow Chemical's production. Vassiliadis therefore sharply criticized the company's decision.

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As the Düsseldorf-based "Handelsblatt" reported, the Böhlen plant is currently considered the heart of Dow Chemical's integrated production in the region. In the so-called "cracker," crude oil components are broken down into raw materials for the manufacture of chemical products. Therefore, there are fears that further company sites will be closed in the future. The basic materials chlor-alkali and vinyl are produced in Schkopau.

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"The structural change in the chemical industry cannot be stopped, but it must remain manageable," declared Andreas Schmidt and Juliane Kleemann, SPD state chairmen of Saxony and Saxony-Anhalt. "We need planning security, competitive energy prices, and a clear industrial policy commitment to Central Germany as a location," both demanded. In addition to the transformation toward a climate-neutral industry, this also includes "resilient infrastructure, investment incentives, and a rapid expansion of hydrogen applications."

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"The closure of chemical plants in Saxony and Saxony-Anhalt announced today by the US company Dow Chemical threatens a devastating domino effect in the industrial value chains," warned Mirze Edis, industrial policy spokesperson for the Left Party in the Bundestag. He called on the federal government to support the affected sites.

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Olaf Meister, parliamentary secretary of the Green Party in the state parliament of Saxony-Anhalt, called this a "regrettable and truly bitter decision for the Central German chemical region." He added that it also demonstrates "how important it is to consistently pursue the transformation of the chemical industry toward 100 percent renewable energies."

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