Dow Chemical announces plans to cut 2,400 jobs, close 20 plants - ABC 12 – WJRT – Flint, MI

(10/24/12) - 2,400 jobs are on the line and 20 manufacturing facilities will close under a restructuring plan announced by The Dow Chemical Company.

The company says the changes are in result to slow global economic growth.

One of the facilities slated to close is in Midland.

All together, the company is reducing about 5 percent of its workforce worldwide.

We do not know how many people will lose their job in Midland.

A company spokesperson says, of the 2,400 jobs being cut globally, half of them will come from the United States.

We do know DOW plans to close its Automotive Systems Diesel Particulate Filters Manufacturing unit in Midland.

There are 30 Dow Chemical Production Units in operation within the Midland site. The one that is slated to close develops technology that allows people to convert their cars into diesel.

Dow says there is not a large demand for the product.

This restructuring plan is expected to save an annual $500 million by the year 2014.

The company has not said when it will start making the reductions.

Dow also plans to slash capital spending and investments. It expects that move will save an additional $500 million.

Dow is a major employer for Midland.

We spoke with area's chamber of commerce president and CEO, Sid Allen, who says the cuts will impact the community.

"It is a big deal, and first and foremost, our hearts go out to those who will lose their jobs, but certainly it will impact Midland, it always does. Like I said, Dow being a significant employer in this community, any issue like this does have an impact on the community, but we hope it will be minimal," Allen said.

Kent Holsing, president of the United Steel Workers Local 12075, says he is not surprised by the company's announcement.

"We sort of seen something coming when Dow announced their second quarter earnings. We heard that the third quarter earnings were going to be as bad, so when that generally happens, the easiest thing to do is cut people," he said. "This particular business has been struggling since inceptions and Dow is looking to where they are going to invest their money and where they are going to cut loose based on performance, and this is just one of those businesses that they felt they needed to cut loose."