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Dow closes chemical plants: 550 jobs in Saxony at risk!
Dow is closing important chemical plants in Saxony, affecting 550 jobs. Economics Minister calls for relief and new investments.
Dow closes chemical plants: 550 jobs in Saxony at risk!
A dark day for the chemical industry in East Germany: Dow announced today that the chlor-alkali and vinyl plants in Schkopau and the steam cracker in Böhlen will be closed. This decision has a far-reaching impact on the region, as a total of 550 jobs are at risk. Report that MDR and other sources.
The closures, which start at the beginning of the chemical value chain and are considered cost- and energy-intensive, are intended to help adjust capacities and reduce trade risks. At a time when the German chemical industry is under pressure, this withdrawal is a further setback for the region. “We regret the decision,” says District Administrator Hartmut Handschak, “but we understand the economic background.” He also hopes for future engagements from Dow in Schkopau.
Economic challenges and political responses
The reasons behind Dow's decision are varied. Martin Naundorf, spokesman for the InfraLeuna industrial and chemical park, sees the withdrawal as a result of German industrial policy and persistently high energy costs. Economics Minister Sven Schulze (CDU) points out that this development has been foreseeable for some time. A working group was set up to secure the chemical sites and the associated jobs. Schulze also calls for relief for the chemical industry in order to reduce the enormous energy costs.
Dirk Panter, Saxony's economics minister, also expressed concern about the closure of the cracker in Böhlen. He calls on Dow to ensure social security for the affected employees and emphasizes the need for new investments in the region. “To keep the industry alive, we have to act together now,” said Panter.
The role of trade unions
The industrial union IGBCE is deeply affected by the situation, assessing the closures as “deeply black” for the Central Germany chemical cluster. “We are fighting for 550 jobs,” explains IGBCE chairman Michael Vassiliadis and warns of devastating effects on employees and the region. The union is demanding responsibility and solutions from Dow to help affected employees.
The closures come at a time when the entire German chemical industry is already facing severe challenges: in the first quarter of 2025, production fell by 1.1% compared to the previous year. High energy prices and strict regulations are taking a toll on the industry. However, hope comes from increasing domestic demand and the possibility of stabilizing production capacities in other industries, such as Association office reported.
The economic framework conditions will be crucial for the future positioning of the chemical industry. While politicians are working on tax relief and reduced energy prices, companies are faced with the challenge of not only preserving their existing structures, but also developing new impulses for growth.