MOSCOW (MRC) -- Dow Inc. outlined a series of targeted actions aligned to its previously stated plan to achieve USD1 bn in cost savings in 2023, said the company.
The proactive actions will further optimize the Company's cost structure in response to near-term macroeconomic uncertainty, while maintaining its long-term competitiveness across the economic cycle.
Specifically, Dow expects to realize USD1 billion in cost savings in 2023 through: structural improvements of USD500 million, maintaining a low cost-to-serve operating model.
Optimizing labor and services costs, including a global workforce reduction of approximately 2,000 roles. Shutting down select assets, while further evaluating Dow's global asset base, particularly in Europe, to ensure long-term competitiveness and enhance cost efficiency and increasing productivity via end-to-end process improvements.
Operating expense reductions of USD500 million, focused on near-term cash flow: decreasing turnaround spending, with a continued focus on maintaining safety and reliability. Reducing purchased raw materials, logistics and utilities costs; and Aligning spending levels to the macroeconomic environment.
We remind, Univar Solutions has been named as a distributor for Dow’s acrylic emulsion polymer products in the UK and Ireland. The products, which are include in Dow’s PRIMAL and UCAR LATEX brand portfolios, are used in construction for improving the properties of cementitious as well as non-cementitious applications.
Dow combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance leadership to achieve profitable growth and help deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates manufacturing sites in 31 countries and employs approximately 37,800 people. Dow delivered sales of approximately USD57 billion in 2022.