Dow closes chemical plants: 550 jobs in Saxony and Saxony-Anhalt at risk!

Dow closes chemical plants: 550 jobs in Saxony and Saxony-Anhalt at risk!

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

The affected productions, including chlor-alkali and vinyl plants as well as the steam cracker in Böhlen, are considered crucial for the chemical value chain. Dow had already announced in April 2023 that it would put its European plants to the test. However, production will remain running until the facilities close in the fourth quarter of 2027, while the final decision on closure should be made by the end of July 2025 Lab News reported.

Reasons for the closure plans

There are several factors behind the closure plans: high energy prices, rising CO2 costs and market overcapacity due to cheap imports from Asia and the USA are putting a strain on competitiveness. IG BCE warns of a domino effect that could also affect the biotechnology industry, as it relies on raw materials from the region. Mayor Dietmar Berndt von Böhlen has already described the possible closure as “catastrophic”, and the Economics Minister of Saxony-Anhalt, Sven Schulze, also emphasizes the need to reduce 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 at suppliers if Dow achieves its plans. On May 28, 2025, over 700 employees in Böhlen demonstrated against the closure announcements.

Market situation and prospects

The German chemical industry has recorded a year-on-year decline in production of 1.1% by April 2025, while order books are only sparsely filled and sales are stagnating. The reasons for this are high energy prices and strict regulatory frameworks, which place additional strain on companies. Interestingly, for the first time in a year, there is a hint of optimism among chemical companies. The hope of a recovery in domestic demand could give new impetus to the industry, especially as it acts as an important supplier to various industries such as Association office reported.

Nevertheless, the future of the chemical industry in Germany remains uncertain. Political measures to provide relief could be crucial for the industry to be able to survive in international competition. The upcoming discussions at a planned Ost-Chemie summit could potentially reveal solutions that are important for both companies and the affected employees.