Chemical Giant Dow Faces Possible Shutdown at German Sites, Union Warns of Widespread Consequences
Union of chemical workers issues alert on potential factory halt at Dow - Chemical labor union issues alert over potential closure of Dow's manufacturing operations
As the Industrial Union of Mining, Chemistry, and Energy (IG BCE) lead a sizeable demonstration in Börlen, Saxony, and Schkopau, Saxony-Anhalt, to preserve Dow Chemical Company's local production sites, the union fears potential shutdowns could have far-reaching implications for the entire industrial value chain in the East. Over 700 employees participated, boosted by colleagues from neighboring companies.
According to IG BCE chief Michael Vassiliadis, the suspension of Dow's production sites in the region could threaten not just hundreds of well-paid, regulated jobs, but the industrial future of the entire region.
Potential Collapse of Production Chain
In response to escalating energy and raw material costs, as well as growing market oversaturation, Dow is evaluating its central European facilities, including those in Saxony and Saxony-Anhalt. The steam cracker, which manufactures chemical basics from crude oil in Börlen, would be particularly affected.
Should the Börlen cracker close, upstream and downstream facilities in the production chain will likely crumble like dominos, as per Vassiliadis' criticism. The union is now calling upon the federal government for prompt industrial intervention. "The politics must finally deliver, the clock is ticking," stressed Vassiliadis, adding that Dow should avoid hasty decisions, as it remains profitable in Central Germany.
Industrial and Political backing
The protest in Börlen near Leipzig was not only attended by Dow employees but also workers from other chemical and energy companies like Infra Leuna, Wacker Chemie, Leag, Mibrag, and Saale-Energie. Support came from Saxony's Economics Minister Dirk Panter (SPD), the district administrator of Leipzig County, Henry Graichen (CDU), and DGB board member Stefan Körzell.
Recognizing the potential broader impacts of a Dow shutdown, consider:
- Supply chain disruptions: Dow is a significant global chemical manufacturer, and the halting of production in these locations could lead to price volatility and shortages for essential products used across various industries.
- Loss of innovation: The absence of Dow could also dent innovation by diminishing the pool of skilled chemical engineers and scientists available in the region, potentially slowing technological advancement in both the chemical sector and related industries.
- Competitiveness: The possible withdrawal of a leading player from the region could make it more difficult for other players to attract investment and talent, potentially undermining the overall competitiveness of the German and Central European chemical sector.
- The community policy of immediate industrial intervention is being advocated by the union, IG BCE, as they fear the possible closure of Dow Chemical Company's production sites could lead to widespread consequences for the industrial value chain in East Germany.
- Specifically, the union points out that the suspension of Dow's production sites may not only threaten hundreds of well-paid, regulated jobs but also could jeopardize the industrial future of the entire region.
- In the realm of general news, the potential collapse of the production chain in the chemical industry, as a consequence of Dow's evaluation of its central European facilities, has sparked concerns due to the possibility of supply chain disruptions, loss of innovation, and impacts on the sector's competitiveness.
