In response to the persistently challenging European market, Dow has announced a comprehensive review of its chemical assets in the region. This review aligns with Dow’s strategy to evaluate its asset portfolio under a “best-owner” mindset, seeking to optimize value and enhance long-term performance across its global business segments. The company anticipates completing this review by next year.

Several key players in the chemical industry are also reassessing their European assets due to the region's high production costs and challenging regulatory environment. Following industry trends, Dow’s review will focus on its polyurethane business, specifically its facilities producing MDI (methylene diphenyl diisocyanate), propylene oxide, and polyether polyols. These assets contributed approximately $2.9 billion in annual sales in 2023, reflecting their importance within Dow’s portfolio.

Dow’s CEO, Jim Fitterling, emphasized the commitment to a value-driven approach, noting, “We believe there is significant potential to enhance value from these assets.” Fitterling underscored that Dow’s European polyurethane facilities maintain a favorable cost position and continue to perform well. While he stopped short of predicting specific outcomes, he noted that selling rather than closing assets could align better with Dow’s strategic priorities.

Despite this review, Dow continues to make selective adjustments across its polyurethane operations globally, including a reduction in polyol production and the planned shutdown of a propylene oxide unit in Freeport, Texas, slated for next year.

Commenting on the broader European landscape, Fitterling expressed concerns about the region’s regulatory environment, stating, “The absence of clear, consistent, and competitive industrial policies in Europe has created ongoing challenges.” Dow remains committed to navigating these complexities and strengthening its global portfolio, even as economic conditions vary across regions. The company reported a modest 1.4% increase in third-quarter sales, though net income declined by 3.2% from the prior year, reflecting both resilience and the need for further optimization in key markets.

Source:DOW