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US chemical giant Dow Chemical Company revealed that, due to poor economic performance, it had made the decision to terminate the production of 50,000 tons per year of polyether polyols at its factory in San Lorenzo, Santa Fe Province, Argentina. Dow Chemical pointed out that the San Lorenzo factory had long been facing the issue of low operating rates due to an oversupply of polyols in the global market. Previously, the company had planned to cease polyurethane production activities at the factory in 2021, but was unable to do so at that time due to pressure from trade unions and the national government.
There is a discrepancy between Dow Chemical and the trade union regarding the number of employees affected by the factory closure. Dow Chemical claims that 40 employees will be affected, while the trade union insists that the number is 120.
According to local media reports from Santa Fe Province, the United Petrochemical Workers and Employees Union, representing the factory's employees, accused the company of not notifying worker representatives when deciding to close the factory. In response, Dow Chemical stated that it had provided corresponding notifications to employees in accordance with Argentine labor laws. Dow Chemical also promised to maintain close cooperation with all stakeholders of the San Lorenzo factory to ensure an orderly and smooth transition process.
Furthermore, Dow Chemical maintains a significant business presence in Argentina, where it is the sole producer of polyethylene. Its main operating facilities are located in Bahia Blanca, south of Buenos Aires, where it owns 12 production plants and employs 3,000 workers.
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