Dow to shut Barry plant in major European restructuring move
Dow to shut Barry plant in major European restructuring move
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Global chemicals giant Dow has confirmed that its siloxane plant in Barry will be shut down by mid-2026, as part of a broader move to restructure its European operations and reduce global manufacturing costs.
The announcement comes as part of a sweeping asset review approved by Dow’s Board of Directors, which also includes the closure of two major facilities in Germany. In total, three upstream production assets across Europe will be retired over the next three years, including the Barry site—one of the company’s key UK facilities.
Dow said the shutdown of the Performance Materials & Coatings plant in Barry would allow the company to remove higher-cost and energy-intensive operations from its European portfolio. The company expects the move will ultimately boost profitability and deliver long-term cost savings.
The Barry site, which produces basic siloxanes, a key ingredient in sealants, adhesives, and other silicone-based materials, will be decommissioned as part of a global strategy to optimise Dow’s asset footprint. Approximately 800 roles globally will be affected across the three European sites and related corporate actions. The number of roles impacted locally in Barry has not yet been specified.
“Our industry in Europe continues to face difficult market dynamics, as well as an ongoing challenging cost and demand landscape,” said Jim Fitterling, Dow Chair and CEO. “We remain committed to enhancing profitability and cash flow while taking proactive steps to rationalise high-cost or non-strategic assets.”
Dow has committed to engaging with local stakeholders and following all relevant information and consultation procedures within the UK.
The closure of the Barry site will require an estimated cash outlay of $180 million through 2029 and is expected to generate an Operating EBITDA uplift of $90 million annually once fully implemented. The shutdown is scheduled to begin mid-2026, with full closure and decommissioning expected to be completed between 2027 and 2029.
In total, Dow is forecasting a cash outlay of approximately $500 million across all shutdowns and corporate actions, with a full EBITDA benefit of around $200 million annually by 2029. The company will record a charge of $630 million to $790 million as a result of asset write-downs, severance costs, and other associated expenses.
The Barry plant closure follows Dow’s earlier announcement in January 2025 of a global cost-saving programme targeting $1 billion, which included the reduction of approximately 1,500 roles worldwide.
Dow says this latest round of closures reflects its “best-owner mindset”, a strategy focused on maximising the value of its most competitive and strategically aligned assets while divesting or shuttering those no longer viable under current market conditions.
Dow, which employs around 36,000 people worldwide and operates in 30 countries, reported $43 billion in sales for 2024. The Barry facility has been a longstanding part of Wales’ industrial landscape, and its planned closure will raise fresh concerns over job losses and economic impact in the Vale of Glamorgan.
Local government and business leaders are expected to seek clarity from Dow in the coming weeks as the consultation process begins.
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