Dow plans deep cuts amid poor economy

Responding to economic uncertainty and a longer and deeper chemical industry downturn than it had anticipated, Dow is planning further cuts to manufacturing. The company, the largest US chemical maker, is delaying an ethylene project in Alberta and may idle or permanently shut down three large facilities in Europe, including its ethylene cracker in Böhlen, Germany. “The reality is our industry is in one of the most protracted downcycles in decades, facing a third consecutive year of below 3% GDP growth,” CEO Jim Fitterling said in an April 24 conference call with analysts. “This has been further exacerbated by geopolitical and macroeconomic concerns, which are weighing on demand globally.” Dow is delaying its so-called Path2Zero project in Fort Saskatchewan, Alberta. The $6.5 billion project includes the construction of new ethylene and polyethylene plants. Instead of using fossil fuels to heat the furnaces, the company plans to use hydrogen produced by