Chemical giant Dow’s Barry factory is under review, sparking concerns about job security for hundreds of workers. The US company Dow has announced a review into “alternative supply options” for one of its core production lines at the Barry facility, raising fears of potential job losses. Since purchasing the site from Midland Silicones in 1971, Dow has been operating at the Barry location, employing around 850 people on a 160-acre site dedicated to developing, commercialising, and producing silicon-based products for customers globally.
The company has confirmed that it is currently “assessing alternative siloxanes supply options” at the Barry site, emphasizing that siloxanes production is just one of several manufacturing facilities and operations on site. A spokesperson for Dow mentioned that the assessment aims to enhance the company’s competitiveness and better serve its specialty silicones customers, aligning with a strategic review of select European assets discussed during the company’s 3Q24 earnings call in October 2024.
Despite the ongoing review, the company assures that there are currently no changes for employees, customers, or suppliers. However, specifics regarding the scope or nature of potential actions resulting from the assessment are not yet available. Dow reiterated its commitment to transparent communication when appropriate while focusing on the safe and reliable operation of its assets, maintaining close relationships with employees and suppliers, and continuing to serve its customers.
The announcement of the review follows Dow’s recent confirmation of delivering $1 billion in cost savings in response to economic uncertainties. This cost-saving measure includes a reduction in direct costs, primarily focusing on purchased services and third-party contract labour, as well as decreased labour costs, which may involve a global reduction of approximately 1,500 Dow roles. Jim Fitterling, Dow’s chair and CEO, emphasised the necessity of these proactive cost-saving actions to support the company’s long-term growth objectives in the current economic environment.
Dow’s Barry site has been a significant global production centre for core building products for many years. Their silicones are utilised in a wide range of applications, including personal care products, detergents, polishes, and automotive care products. The company has a long history of providing essential ingredients for everyday consumer goods, highlighting the potential impact of any changes at the Barry facility on various industries and households.
As Dow continues to evaluate options to enhance competitiveness and ensure sustainability, the company remains dedicated to its operational efficiency and strategic growth. The reassurance from Dow regarding ongoing communication with stakeholders and a focus on operational excellence signals a commitment to navigating challenges while prioritising long-term success and employee well-being at the Barry site. The outcome of the review will have implications not only for the company and its workforce but also for the broader community and economy in Barry and beyond.