Over the past 12 months, Dow Chemical has strategically exited or discontinued a number of major projects in response to shifting market conditions and internal restructuring efforts. These decisions span multiple continents and involve high-profile assets across Europe, the Americas, and Asia. The moves reflect Dow’s broader strategy to optimize costs, focus on high-value businesses, and adapt to evolving global economic and environmental pressures. Below is a breakdown of the key projects Dow has shut down or sold off in the recent period:

1. Germany: Cancelation of the Böhlen Chemical Recycling Project

Dow canceled its planned chemical recycling venture in Böhlen, Germany, which was intended to partner with Mura Technology to build a facility capable of processing 120,000 metric tons of waste plastic per year using supercritical steam technology. The plant would have converted multi-layer packaging plastics into naphtha for use in Dow’s nearby ethylene cracker.

However, Dow announced plans to shut down the Böhlen ethylene cracker by 2027, and changes in European plastics recycling policies led to the project losing its economic viability. While scrapping the initiative helped Dow avoid an estimated €200 million in investment losses, it also weakened the company’s presence in Europe’s circular economy initiatives and slowed progress in integrating the region’s plastic recycling supply chain.

2. United Kingdom: Closure of Barry Silicone Plant

Dow is set to close its silicone manufacturing facility in Barry, UK, which has an annual capacity of 14,500 metric tons and employs around 200 people. The shutdown is scheduled for mid-2026.

This move is part of Dow’s effort to streamline its European operations by focusing resources on higher-margin products such as electronic-grade silicone sealants, while reducing exposure to high-energy, low-profit operations. The closure is expected to generate annual savings of around €30 million for Dow. However, it will also reduce silicones supply in Europe, likely requiring imports from the U.S. or Asia to fill the gap.

3. Germany: Shutdown of Chlor-Alkali/Vinyl Assets in Schkopau

Dow plans to cease operations at its Schkopau site, which includes 250,000 metric tons per year of caustic soda (sodium hydroxide) and 300,000 metric tons per year of vinyl chloride monomer (VCM). The shutdown is expected to be completed by Q4 2025.

This move is part of Dow’s strategy to exit high-cost, energy-intensive operations in Europe, driven by volatile energy prices and rising carbon costs. The closure is projected to help Dow cut CO₂ emissions by around 400,000 metric tons annually and will also reduce the supply of chlor-alkali products in Europe, with imports from North America expected to fill part of the shortfall.

4. United States: Closure of Propylene Oxide (PO) Plant in Texas

Dow will shut down its 550,000 metric ton per year propylene oxide (PO) plant in Texas, which accounts for roughly 20% of total North American PO production capacity. The closure is planned for 2025.

While the move allows Dow to optimize its North American PO production by focusing resources on its Plaquemine, Louisiana facility, it will also reduce the company’s PO supply in the region, likely leading to increased imports from Asia and upward pressure on market prices.

5. Argentina: Closure of Polyether Polyol Plant

Dow exited the South American polyurethane market in 2024 by shutting down its polyether polyol plant in Argentina. The decision was driven by weak local demand, aging equipment, and the high cost of upgrades.

The closure resulted in an estimated annual revenue loss of $80million\ast \ast forDowintheSouthAmericanmarket,butitalsohelpedthecompany\ast \ast avoidaround$20 million per year in maintenance costs. The shutdown has had a ripple effect on the construction and automotive supply chains in the region.

6. Taiwan: Closure of Alkoxylation Plant in Nangang

In 2024, Dow closed its 30,000 metric ton per year alkoxylation plant located in Taiwan’s Nangang Industrial Park. This was part of Dow’s effort to reallocate resources to its bio-based materials production base in Zhangjiagang, China.

While the closure reduced the supply of alkoxylation products in the Asia-Pacific region, it improved utilization rates at the Zhangjiagang bio-based polyether facility, partially offsetting the impact. Additionally, Dow’s exit reduced its presence in Taiwan’s coatings and adhesives markets, creating opportunities for local competitors.

7. Sale of Flexible Packaging Adhesive Business

In December 2024, Dow sold its flexible packaging adhesive business—comprising five manufacturing sites in Italy, the U.S., and Mexico—to Arkema for $150million\ast \ast .Thedivestedbusiness,whichgeneratedaround\ast \ast$250 million in annual sales, included both solvent-based and solvent-free adhesive products.

Dow opted to exit this segment to focus on higher-growth areas such as water-based and acrylic adhesives, which align with the rising demand for sustainable packaging solutions. The sale provided Dow with $150 million in cash to reinvest in R&D. Meanwhile, Arkema expanded its footprint in the North American and European flexible packaging markets, disrupting the existing competitive landscape.

8. Divestiture of Stake in Carbon Fiber Joint Venture DowAksa

In June 2025, Dow sold its 50% stake in the carbon fiber joint venture DowAksa to its Turkish partner, Aksa Akrilik, for $125 million. This move marked Dow’s formal exit from the carbon fiber business as it shifts focus to higher-value downstream applications, such as new energy materials and biodegradable polymers.

The sale resulted in an annual revenue loss of $180million\ast \ast fromcompositematerialsbutgenerateda\ast \ast$125 million cash inflow. For Aksa, the acquisition bolstered its position, making it the world’s fifth-largest carbon fiber producer.

9. Exit from Agricultural Chemicals via Telone Sale

In 2024, Dow sold its Telone soil fumigant product line to TriCal Soil Solutions for $121 million, effectively exiting the agricultural chemicals market. This strategic move aligns with Dow’s goal to double down on its core material science businesses and reduce exposure to non-core, diversified sectors.

The sale provided Dow with additional cash flow to support investments in bio-based materials, though it also led to a decline in Dow’s market share within North America’s agricultural chemical sector.

Conclusion:

Collectively, these closures, divestitures, and strategic realignments underscore Dow Chemical’s ongoing transformation. By exiting underperforming or non-core assets—particularly in high-cost regions—and reallocating capital toward sustainable, high-growth opportunities, Dow is positioning itself to enhance profitability, improve operational efficiency, and drive long-term innovation in a rapidly evolving global market