Dow Pharmaceutical has announced that a number of manufacturing assets, including ethylene and ethylene-derivative assets will be shut down as part of a restructuring plan to streamline the company's portfolio.
The Dow board of directors confirmed the move is consistent with the company's $1.3bn synergy commitment related to the acquisition of Rohm and Haas.
The restructuring plan is likely to eliminate approximately 2,500 positions.
Dow chairman and CEO Andrew Liveris said that the move is consistent with Dow's practice of active portfolio management; the company continues to take quick and aggressive action to right-size its manufacturing footprint, particularly in its basics portfolio.
"These actions are also aligned with our strategic transformation, which focuses on preferentially investing for growth in our performance and advanced materials portfolios. In addition, we are making excellent progress on achieving $1.3bn in cost synergies from the acquisition, and today's steps demonstrate our speed and determination to deliver these savings," Liveris said.
Dow would also have to recognise an impairment charge due to an expected loss on the divestiture of certain acrylic monomer and speciality latex assets, required for Federal Trade Commission approval of the Rohm and Haas acquisition.