Dow closes chemical works: 550 jobs in Saxony and Saxony-Anhalt in danger!

Dow closes chemical works: 550 jobs in Saxony and Saxony-Anhalt in danger!

Schkopau, Sachsen-Anhalt, Deutschland - The chemical industry in Germany is under considerable pressure. The American company Dow plans to close its production facilities in Böhlen (Saxony) and Schkopau (Saxony-Anhalt), which means a bitter blow for the industry. Loud focus are Around 550 regular employees directly affected, including those who work in supportive areas. Dow employs a total of around 3,400 people in Germany at 13 locations, with the facilities in Böhlen and Schkopau being particularly cost and energy-intensive.

The affected productions, including chloral calibration and vinyl systems as well as the Steamcracker in Böhlen, are considered crucial for the chemical value chain. Dow had already announced in April 2023 to put the European facilities to the test. Until the end of the facilities in the fourth quarter of 2027, however, the production will be ongoing, while the final decision on the closure should be made by the end of July 2025, such as Lab-News reported.

causes of the closure plans

Behind the closure plans are several factors: high energy prices, rising CO2 costs and market overcapacities due to cheap imports from Asia and the USA are burdening competitiveness. The IG BCE warns of a domino effect that could also affect the biotechnological industry because it rely on raw materials from the region. Mayor Dietmar Berndt von Böhlen already describes the possible closure as "catastrophic", and also the Minister of Economics of Saxony-Anhalt, Sven Schulze, emphasizes the need to lower energy prices for such companies.

in the chemical triangle, which produces chemicals worth over two billion euros annually, up to 1,500 jobs could be lost to suppliers if Dow is the goal of his plans. On May 28, 2025, over 700 employees in Böhlen demonstrated against the closure announcements.

market situation and perspectives

The German chemical industry has recorded a decline in production of 1.1 % compared to the previous year until April 2025, while the order books are only sparsely filled and the sales are stagnating. The reasons for this are high energy prices and strict regulatory framework conditions that also burden companies. Interestingly, chemical companies showed a touch of optimism for the first time in a year. The hope of recovery in domestic demand could give the industry new impulses, especially since it acts as an important supplier for various industries, such as the Association office reported.

Nevertheless, the future of the chemical industry in Germany remains uncertain. Political measures to relieve the industry could be crucial for the industry in order to be able to survive in international competition. The upcoming talks at a planned east-chemical summit could possibly show solutions that are important for both companies and the employees concerned.