Citation
(2010), "Dow to shutter UK EOEG production plant", Pigment & Resin Technology, Vol. 39 No. 1. https://doi.org/10.1108/prt.2010.12939aab.019
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited
Dow to shutter UK EOEG production plant
Article Type: Industry news From: Pigment & Resin Technology, Volume 39, Issue 1
The Dow Chemical Company has announced that it intends to close its ethylene oxide and glycol (EOEG) production facility at Wilton, UK by the end of January 2010. The site employs 55 people. The actual number of jobs that could be impacted by the intended closure will be determined following an employee consultation period.
“Decisions to shutdown a facility are not taken lightly,” said Malcolm Wilson, site leader, Dow (Wilton) Ltd “A comprehensive review of potential options was conducted, which included seeking a buyer for the site and engagement with industry leaders, regional and government groups to identify alternatives to a shutdown. A workable option was not identified. Without an economically viable alternative it is with great regret we have to announce our intention to stop production at the Wilton site by the end of January 2010.”
According to Dow, several factors contributed to the intention to close the Dow Wilton EOEG plant, including the site's disadvantaged input costs. In addition, demand and profit margins for the site's outputs, particularly monoethylene glycol (MEG), began to soften in early 2008. MEG economics have been significantly worsened by the global economic recession, further placing the Wilton site at a disadvantage. The ongoing recession is expected to prolong difficult global EOEG industry conditions for several years and has expedited the need for Dow to come to a decision regarding the Wilton facility.