Dow Chemical to leave Hungary
The American Dow Chemical to close plant in Hungary due to "very weak market conditions and the unfavourable economic outlook."
3 April 2012
The Dow Chemical Company is planning to close styrofoam (polystyrene) plant in Balatonfűzfő - the company told on Monday. Dow Hungary stressed "the ongoing slump in construction market conditions and the economic downturn in the construction industry with dramatic decrease in demand" force them to close.The company will proceed in accordance with Hungarian law and begin consultation with employees who had been notified about terminations and plant closure.
Dow in Hungary since 1989
According to company data, Dow Chemical was established in June 1989, the first company under the name of fDonichem Chemical Kft. Dow Hungary has continued to operate since 1992.
The annual balance sheet Dow Chemical Hungary shows HUF7.2 billion net income, net profit of HUF632 million and shareholders' equity HUF3.4 billion in 2010. Although balance sheet does not include number of employees, 60 to 70 people work for Dow in Balatonfűzfő.
Dow to Cut jobs in Americas and Europe
Dow Chemical, the largest American chemical company is planing to close plants inclusing State of Illinois, Hungary, Portugal and Brazil due to cost effective operation.
The American company plans to save $250 million per year in part on plant closures, which means termination of 900 employees. The plant closures expense is $350 million one-time expenditure to the company.
Rebecca Bentley, a spokesman of Dow Chemical Hungary, said that both Hungary and Portugal have "very weak market conditions and the unfavorable economic outlook."
The Dow Chemical's 52 thousand employees worldwide.
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