Chemical labor union forewarns potential halting of operations at Dow Industries (shutdown threat)
In a significant demonstration, the Industrial Union of Mining, Chemistry, and Energy (IG BCE) held a large-scale protest action on Wednesday in Saxon Böhlen and Schkopau, both home to chemical facilities operated by US corporation Dow. The union, representing over 700 employees, has raised concerns about potential production shutdowns at Dow, asserting that such a move would have far-reaching consequences for the entire industrial value chain in the region.
According to Michael Vassiliadis, union chief, the stoppages could put hundreds of well-paid and regulated jobs at risk and potentially jeopardize the industrial future of the region. The local economy strongly depends on these facilities, which are integral to the Leuna chemical cluster. This cluster produces over 30 basic and interim chemicals and more than 50 end products, primarily relying on feedstocks like imported oil, natural gas, and ethylene.
Dow's decision to review central European facilities could stem from factors such as high energy and raw material prices, as well as increasing market overcapacities. A particular concern is the steam cracker in Böhlen, which produces chemical raw materials from crude oil. Such a shutdown could cause downstream facilities in the process chain to collapse, according to Vassiliadis.
The union is urging the federal government to provide swift industrial policy support, while warning Dow against hasty decisions. "Politics must finally deliver, the clock is ticking," said Vassiliadis. At the same time, he emphasized that Dow is still generating profits in Central Germany, making a hasty withdrawal an unfeasible option.
The protest attracted not only Dow employees but also workers from other chemical and energy companies such as Infra Leuna, Wacker Chemie, Leag, Mibrag, and Saale-Energie. Local politicians, including Saxony’s Minister of Economics Dirk Panter (SPD) and district administrator Henry Graichen (CDU), voiced their support. The demonstration took place near Leipzig. (dpa)
While the exact details of Dow's plans are not disclosed, such production stoppages often occur due to market pressures, cost issues, or strategic realignments. Such a move could disrupt the supply of critical chemical intermediates and base chemicals to downstream industries within the Leuna cluster and beyond, leading to increased costs or shortages for regional manufacturers. This could force shifts in procurement strategies or temporary production downtimes at customer sites, with potential knock-on effects for local suppliers, service providers, and associated small and medium enterprises.
- The industrial future of the region could be jeopardized if Dow's facility shutdowns occur, as these plants are crucial to the Leuna chemical cluster, which relies heavily on finance from the industry and energy sectors to produce over 30 basic and interim chemicals and more than 50 end products.
- The union's concerns about potential production stoppages at Dow are valid, as disruptions in the supply of critical chemical intermediates and base chemicals could lead to increased costs or shortages for regional manufacturers, impacting downstream industries, suppliers, service providers, and associated small and medium enterprises, potentially causing financial strain.
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