Dow to close chemicals plant in Wales

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DOW is closing its basic siloxanes plant in Barry, Wales which will lead to the loss of 220 jobs.

The chemicals major said it is closing the plant to “remove higher-cost, energy-intensive” operations in Europe. The Barry plant produces basic siloxanes, the raw materials needed to produce specialty silicone polymers which in turn are used to manufacture a  variety of industrial and consumer products.

The company said: “The Barry site remains a vital part of Dow’s operations. While basic siloxanes production will cease, specialty silicones manufacturing will continue, supporting key industries such as automotive, electronics, energy, construction, and personal care.”

It also announced that it will close an ethylene cracker in Böhlen, Germany and chlor-alkali and vinyl operations in Schkopau, Germany. Altogether the closures are expected to result in around 800 jobs being lost.

Dow says the shutdowns are expected to begin in mid-2026 and will be complete by the end of 2027. Any decommissioning and demolition is expected to continue into 2029.

Dow announced in April that it was considering the closures. The trade union Unite said that initially almost 300 jobs were at risk, but negotiations have reduced this to 220, with 150 of those taking voluntary redundancy.

Unite general secretary Sharon Graham said: “Our reps have worked hard to mitigate the impact of redundancies and we will fight every step of the way to ensure as many members as possible are retrained and moved into job roles in other areas of Dow.”

The closures come as UK industry struggles with higher energy costs and low growth, with the Chemicals Industry Association (CIA) saying earlier this year that the sector is on a trajectory of steady decline. Ineos chairman Sir Jim Ratcliffe has offered a more dire warning – that “we are witnessing the extinction of our major industries as chemical manufacture has the life squeezed out of it”.

In June, Sabic announced it will close its olefin 6 cracker in Teesside with more than 300 jobs thought to be at risk. Last week, the Lindsey refinery was put into insolvency, putting another 400 on the block. It follows the shutdown of Scotland’s Grangemouth refinery in April.

Also in doubt is the future of the largest of the UK’s two bioethanol plants – the Vivergo site in Hull. Ahead of entering formal negotiations with the government, its owner warned that the US-UK trade deal which removes tariffs on US ethanol imports has propelled the industry into a “full blown crisis”. The sector which produces fuel from British wheat is estimated to support some 4,000 jobs through the supply chain.

Dow’s cuts across the three European sites are in addition to the US$1bn cost-saving plan announced in January that will result in 1,500 people losing their jobs.