Dow Announces Actions to Drive Economic Growth in Great Lakes Bay Region
MIDLAND, Mich. – June 28, 2016 – The Dow Chemical Company (NYSE: DOW) announced today a series of actions it will take in collaboration with several state and local economic development and community organizations to spur local employment and bring additional economic development to the Great Lakes Bay Region (GLBR). These actions are intended to help offset the impacts from restructuring measures Dow will implement to enable faster and more efficient growth of Dow Corning’s Silicones business.
Dow’s GLBR efforts are multi-faceted:
- The Company will partner with the Michigan Department of Talent and Economic Development, local economic development agencies, and others to help affected Dow and Dow Corning employees find new work;
- Dow is unveiling a facilities plan for the region, which maximizes the number of Dow and Dow Corning facilities that will remain open and operational; and
- Dow is confirming that Dow Corning’s total overall corporate charitable giving programs will remain at 2016 levels throughout the restructuring period, which began on June 1, 2016 and runs through June 1, 2018.
“With the difficult but necessary actions Dow is announcing today to enable faster and more efficient growth from Dow Corning, we are also calling into action multiple efforts to minimize the economic impact on the Great Lakes Bay Region,” said Howard Ungerleider, vice chairman and chief financial officer of Dow, and chairman of Dow Corning. “We believe, by working together as one community with one singular focus, we can make both Dow and the region stronger and more economically resilient in the future.”
Job Impact and Mitigation Efforts
As a result of the Company’s global workforce reduction targets announced today, approximately 700 roles in the GLBR will be eliminated from the combined companies. These reductions will come from both Dow and Dow Corning, and are part of Dow’s overall cost reduction efforts related to the transaction.
Notifications to affected employees in the Great Lakes Bay Region will start in the coming weeks, and will continue through the end of the third quarter of 2016. Roles will be eliminated on various timetables throughout the two-year integration period.
Since January, Dow has implemented a hiring slowdown of external experienced hires, which has resulted in a number of open roles. As the integration process proceeds, Dow intends to prioritize impacted Dow Corning and Dow talent for selection into these open roles to minimize the impact of job loss. Additionally, a number of open roles in Dow’s U.S. Gulf Coast Manufacturing and Engineering operations also will be included in this effort, and Dow will host hiring managers from those locations in Midland soon to discuss employment options there with impacted Dow Corning and Dow talent.
Dow is partnering with the Michigan Department of Talent and Economic Development, in conjunction with local economic development corporations including Saginaw Future, Bay Future and Midland Tomorrow, to launch a series of actions to help affected employees find new work in the region, and across Michigan. These actions will include a customized online job portal that will match talent with jobs around the state, as well as in-person and virtual career fairs to be held in the region in the coming months. More information on these efforts will be shared soon.
Dow is also driving its own initiative to match available talent with local employers. The Company will work in conjunction with local chambers of commerce, and large and small businesses across the GLBR, to identify open positions and match these openings with available talent. The goal of the program is to retain talent in the region while efficiently matching affected Dow and Dow Corning employees with open roles at area businesses.
Dow is working with Accenture and Tata Consultancy Services to bring additional work and income to the local economy. These roles will constitute a mix of positions supporting projects, such as integrating Dow Corning solutions, as well as service delivery to Dow Businesses and other companies. Projects and services would include Information Technology development projects, transactional support and other corporate services.
Finally, Dow is supporting the Great Lakes Bay Regional Alliance in hosting an Entrepreneurship Fair in the early fall of 2016. The Fair will bring together experts in the area of small business start-up, and will provide access and information from local universities, technology incubators and funding sources on how to start a small business.
Updated Facilities Plan Announced
The Company also announced an updated facilities plan that will drive consolidation of several office properties around the world. For the GLBR, all Dow and Dow Corning office locations will remain open, while the company will continue to rationalize its oldest and idled locations from the combined facilities footprint.
Construction of Dow’s new corporate HQ building will continue as planned, with a scheduled opening at the end of 2017.
Charitable Giving Intentions
Finally, Dow announced today its intention to keep Dow Corning’s total overall corporate charitable giving at 2016 levels throughout the restructuring period. Dow may choose, however, to adjust giving levels to specific charities, based on need in the community.
Charitable giving from The Dow Corning Foundation will continue. The Dow Corning Foundation is an independently governed foundation and operates as it has for the last 35 years.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from material, polymer, chemical and biological science to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow's integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high-growth sectors such as packaging, electronics, water, coatings and agriculture. In 2015, Dow had annual sales of nearly $49 billion and employed approximately 49,500 people worldwide. The Company's more than 6,000 product families are manufactured at 179 sites in 35 countries across the globe. On June 1, 2016, Dow became the 100 percent owner of Dow Corning Corporation’s silicones business, a global company with sales of greater than $4.5 billion in 2015, 25 manufacturing sites in 9 countries and approximately 10,000 employees worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
For further information contact:
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Note: The forward looking statements contained in this document involve risks and uncertainties that may affect Dow’s operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission (“SEC”). These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that Dow’s expectations will be realized. The Company assumes no obligation to provide revisions to any forward looking statements should circumstances change, except as otherwise required by securities and other applicable laws.