Dow changes: $3 billion in cost savings coming, but still a big presence in Mid-Michigan

(courtesy MGN Online)
By  | 

MIDLAND (WJRT) (11/03/2017) - The recently completed Dow-DuPont merger will mean big changes ahead for both companies, including $3 billion in cost cuts, but a massive presence in Mid-Michigan will remain.

The newly combined company unveiled plans this week to save $3 billion in operating costs through job cuts, facility consolidations, plant closures and purchasing synergies, according to a press release issued on Thursday.

The guidelines did not include any specifics for a number of job cuts in Mid-Michigan or any word on which plants might combine or close. Dow-DuPont spokesman Jarrod Erpelding said that information hasn't been finalized, but the changes will unfold over the next few years.

Eventually, Dow-DuPont will split into three companies. Most of what had been Dow Corp. based in Midland will become the new Material Science Co. New spinoffs also will be created for agricultural products and specialty products.

Erpelding said Material Science Co. still will be based in Midland and maintain a massive manufacturing presence in the region when the split is complete. The new agricultural and specialty products companies also will have some footprint around Mid-Michigan.

Much of the former Dow-Corning silicone business in Auburn will merge into Material Science Co. and remain intact.

"Dow will continue to have a leading presence in the region and we will continue to provide our resources, time, talents and people to the Great Lakes Bay Region," Erpelding said. "We will continue to partner with our community organizations that make our region a great place to live and work."

Still, he warned that ongoing restructuring and consolidation caused by the Dow-DuPont merger will lead to cuts in jobs and manufacturing presence in the near future. At the same time, some facilities may expand and add jobs.

"Restructuring will occur over a few years and will include natural attrition," Erpelding said.



 
Comments are posted from viewers like you and do not always reflect the views of this station. powered by Disqus