Dow Chemicals Strategic Review Threatens Jobs at South Wales Manufacturing Hub

The US chemicals behemoth Dow has launched a strategic review of its operations at its Barry manufacturing site in South Wales, casting a shadow over a significant portion of its 850-strong workforce. The move comes as part of a broader European asset assessment, reflecting mounting pressures within the UK chemicals sector.

The Barry facility, employing approximately 600 staff and 250 contractors, has been earmarked for evaluation as Dow explores “alternative supply options in Europe.” The review specifically targets the site’s siloxanes production, a crucial component in silicone manufacturing used across electronics, semiconductors, healthcare, and cosmetics industries.

This development emerges against a backdrop of industry-wide challenges, with the Chemical Industries Association reporting 60% of businesses experiencing declining sales. Steve Elliott, the association’s chief executive, described the current climate as “most challenging,” citing escalating input costs, subdued demand, and an unfavourable regulatory environment.

The announcement follows recent stark warnings from Sir Jim Ratcliffe, Ineos chief, who cautioned that Britain’s chemicals industry faces “extinction” due to soaring energy costs and carbon taxation. These factors recently led to the closure of Ineos’s synthetic ethanol plant at Grangemouth.

Unite union representative Richard Jackson confirmed awareness of the review but noted no formal redundancy consultations had commenced. The union has pledged to “do everything in its power to defend members’ jobs” should the situation escalate.

The Barry site, established in 1941 and fully integrated into Dow in 2016, represents a significant piece of Wales’s industrial heritage. While Dow maintains that no immediate changes are planned for employees, customers, or suppliers, the review signals potential restructuring in response to evolving market dynamics and competitive pressures.