Dow closes chemical plants in central Germany – Saxony-Anhalt reacts!

Dow closes chemical plants in central Germany – Saxony-Anhalt reacts!

On July 7, 2025, the US chemical company Dow will bring worrying news for the Central Germany region. The group announces the closure of two chemical plants by the end of 2027: one in Schkopau, Saxony-Anhalt, and the other in Böhlen, Saxony. This decision affects around 550 employees, with around a third of the affected employees working at the Schkopau location. Politicians are doing everything they can to alleviate the tense conditions.

Saxony-Anhalt's Economics Minister Sven Schulze emphasizes that the state has been working intensively with Dow and at the federal level on possible solutions for months. The aim of these efforts is to strengthen the locations, secure jobs and relieve the burden on the entire chemical industry. “There is something to be said,” says Schulze and reiterates the importance of support for the regions.

Background to the closure

The reasons for the closures are complex. Structural challenges in the European market play a central role, including high energy prices and operating costs as well as falling demand in key industries. These are developments that are putting a lot of pressure on many companies - not just Dow. According to esslinger-zeitung the affected plants are the chlor-alkali and vinyl plants in Schkopau and the Steam cracker in Böhlen, particularly cost and energy intensive.

Another focus is on Dow's statement that it sees the closures as a step to adjust capacity and improve competitiveness. These decisions are intended to reduce the handling of trading risks and ensure the long-term success of the company. Ultimately, this could also have an impact on Dow's 13 locations in Germany, where a total of around 3,400 employees work.

Political reactions and initiatives

Saxony-Anhalt has already acted proactively in view of the current situation. In order to coordinate job security measures, a working group was set up with Dow. “We reacted to the situation early,” emphasizes Economics Minister Schulze. A chemical and pharmaceutical dialogue was also initiated on December 13, 2024 to provide targeted support to the industry.

A Federal Council initiative was also recently launched, which was decided on March 21st. This initiative aims to demand concrete measures to relieve the chemical industry of high energy costs. It turns out that Saxony-Anhalt is not just watching and waiting, but is actively trying to strengthen the chemical industry and secure employment. Hall indicator highlights these efforts and the challenges facing the industry.

It remains exciting to see how the situation surrounding the chemical plants will develop and what measures will ultimately be taken to support the employees and the affected locations in the region. One thing is certain: the coming months will be crucial for the chemical industry in Saxony-Anhalt and Saxony.