Dow closing operations in Sarnia, Fort Saskatchewan

Dow Chemical said Dow Chemical said Thursday it will cease all of its production at its operations in Sarnia, Ont. by 2008, and close two plants in Fort Saskatchewan, Alta. The move will affect about 550 workers.

Dow Chemical Co. is shutting down allits production at its operations in Sarnia, Ont., and closing two plants in Fort Saskatchewan, Alta.

Roughly 550 workers will be affected by the closures.

The closures are part of a bid tocut$160 million US in annual structural costs by 2009.

The company said Thursday the closure of the Sarnia facilities is due to the March suspension of ethylene shipments through the Cochin Pipeline from Western Canada.

In Sarnia, where 340 employees and 40 contractors will be hit, all production activity will cease by the end of 2008:

  • A low density polyethylene plant will be shut down over the coming weeks.
  • Polystyrene production will cease before the end of this year.
  • Latex production will shut down by year-end 2008.
  • Apolyols plant will also shut down by year-end 2008.

In Fort Saskatchewan, the company will shut down its chlor-alkali and direct chlorination ethylene dichloride plants by the end of October. The closure will affect 100 employees and 70 contract workers.

The company also saidit will notrestart production of the toluene diisocyanatefacility in Venice, Italy, which was shut down for planned maintenance in early August. about 200 jobs will be lost there.