Wind direction shifts dramatically! Dow and Celanese adjust global production capacity layout; Asia emerges as the sole new growth hub.

Since the beginning of this year, under mounting pressures—including high energy costs, intensifying market competition, and supply chain volatility—the global chemical industry has continued its deep strategic realignment. Recently, two international chemical giants, Dow Chemical and Celanese, have successively implemented measures such as layoffs, plant closures, and capacity relocation—actively scaling back inefficient, high-cost operations in Europe, the U.S., and South Korea, while simultaneously deepening their presence in Asia’s high-potential markets. A sweeping reshaping of the global chemical industry landscape has thus officially begun. European operations under pressure, Dow intensifies cost-cutting and expands in China On June 3, Dow Chemical announced the layoff of 605 employees in the Netherlands—a key step under its "Transform to Outperform" cost-optimization and efficiency-enhancement initiative. Dow operates three major production bases in the Netherlands, each with clearly defined roles and substantial scale: The Terneuzen site is Dow’s largest manufacturing facility outside the U.S., housing 16 plants and approximately 3,200 employees, producing nearly 800 industrial chemical and plastic products; The Delfzijl site, with over 50 years of operational history, is the world’s largest isocyanate production base; The Dordrecht site specializes in specialty plastics for medical and food applications, with multiple products widely used in packaging and composite adhesives. Persistent financial losses are the core reason behind Dow’s repeated workforce and capacity optimization. In recent years, Dow has launched multiple rounds of global cost-cutting initiatives: two large-scale layoffs in 2023 and 2025 respectively, and—in January 2026—a comprehensive restructuring plan targeting 4,500 global layoffs and aiming to generate an additional $2 billion in operating profit. Financial data shows Dow posted a net loss exceeding $2.4 billion for the full year 2025; in Q1 2026, revenue declined 6% year-on-year, with a single-quarter loss of $445 million—signaling sharply escalating operational pressure. Meanwhile, geopolitical factors have disrupted shipping through the Strait of Hormuz, constraining nearly half of the world’s ethylene and polyethylene supply; raw material shortages and rising prices are expected to persist throughout 2026. While scaling back European operations, Dow continues to ramp up investment in the Chinese market. In April 2026, Dow Silicones (Zhangjiagang) officially broke ground on its expansion project for silicone polymers—adding 2,500 tons/year capacity. The Zhangjiagang site already hosts mature production lines for alcohol ethers, polyether polyols, siloxanes, and fumed silica, and is further developing downstream products including silicone resins, liquid silicone rubber, and sealants—forming a complete industrial chain and serving as a pivotal production hub for Dow in China. On the personnel front, Karen S. Carter, Dow’s Chief Operating Officer, will assume the role of CEO and join the Board of Directors effective July 1, overseeing the implementation of Dow’s next strategic phase. Major capacity layout adjustments, Celanese pivots toward China and India Following closely behind Dow, specialty materials company Celanese announced on June 4 the immediate closure of its engineering plastics compounding plant in Ulsan, South Korea—with all local capacity to be transferred to Nanjing and Shenzhen in China, and Silvassa in India.

Layoffs, plant closures, production cuts! Dow, BASF, and DOMO lead the contraction; 2026 sees a life-or-death global chemical industry shakeout.

The plastics and petrochemical industry entered 2026 facing profound restructuring and dramatic adjustment: imbalances between supply and demand, persistently high costs, overcapacity, and weak global demand have collectively plunged the sector into a harsh winter. Since the start of the year, waves of layoffs and shutdowns have swept across the entire industrial chain. Dow Chemical announced a global layoff of 4,500 employees—13% of its total workforce—and concurrently advanced its $2-billion efficiency-improvement program; BASF initiated global workforce optimization and subsidiary restructuring; multiple European chemical giants sequentially shut down ethylene cracker and polyolefin units, cumulatively closing over 37 million tons of capacity in four years. In 2026, numerous leading enterprises launched layoffs, cost-cutting, and production-line closures—layoffs spreading from upstream raw materials to downstream finished goods, sparing even industry-leading manufacturers. Below, we systematically review these developments to help you grasp the industry’s true state—its chill and warmth—and understand survival strategies and transformation pathways within this cyclical downturn. I. The 2026 Layoff Wave: Which International Chemical Giants Are Taking the Most Concentrated Actions? Starting with the top tier of the global chemical industry, Dow Chemical’s successive layoffs most directly reflect sector-wide stress. On January 29, 2026, Dow announced a comprehensive initiative—"Transform to Outperform"—aimed at streamlining operational models, optimizing end-to-end processes, reshaping its cost structure, and modernizing customer service delivery. The initiative targets achieving at least $2 billion in incremental operating EBITDA (Op. EBITDA) in the short term. Dow estimates the "Transform to Outperform" program will incur one-time costs totaling approximately $1.1–1.5 billion—including severance payments for roughly 4,500 Dow employees ($600–800 million) and other one-time expenses ($500–700 million). Notably, earlier—in January 2025—Dow had already announced measures to address persistent macroeconomic uncertainty and strengthen long-term competitiveness, including reducing capital expenditures and implementing layoffs to save approximately $1 billion annually, with plans to cut 1,500 jobs globally. Prior to that, in January 2023, Dow had also announced layoffs affecting about 2,000 employees. Dow is not alone: BASF, another global chemical giant, is likewise advancing its “lean-and-focus” strategic realignment. On January 28, 2026, BASF announced plans to open a Global Digital Center in Hyderabad, India, in Q1 2026—further strengthening its existing global digital center network in Europe (Ludwigshafen and Madrid) and the Asia-Pacific region (Kuala Lumpur). Simultaneously, BASF is pursuing initiatives to reduce operational complexity and costs, and to restructure its organization. By 2030, its Global Digital Services division aims to significantly reduce its global workforce—including positions in Ludwigshafen—and decrease the total number of physical office locations for digital experts. Two days earlier, on January 26, BASF announced a strategic review of its subsidiary trinamiX GmbH, focusing on restructuring, cost-effectiveness, and value optimization. Strategic actions may include divesting certain business segments.

Dow Inc. Q1 2026 Earnings Call Transcript

Jun 16, 2026

Dow Inc. released its Q1 2026 earnings call transcript, featuring discussions on financial performance and market outlook. The document lists company participants involved in the quarterly review.

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