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The
seeds and chemical maker said it would also shut down silicones
manufacturing facilities in Greensboro, North Carolina, and
Yamakita, Japan, as well as certain administrative, corporate
and manufacturing facilities.
Formed in 1943, Dow Corning produces silicon-based products for
aerospace, automotive and electrical industries.
Dow Chemical announced the deal for Dow Corning in December,
when it also said it would merge with DuPont <DD.N> in an
all-stock deal, which then valued the combined company at $130
billion.
Dow Chemical on Tuesday raised its annual cost savings estimate
for the deal to $400 million from $300 million. The company said
it was also targeting $100 million in growth synergies.
Dow Chemical said the actions announced on Tuesday would
position the company to achieve its cost synergy target run rate
of 70 percent within 12 months of closing the deal, and 100
percent within 24 months.
The deal is expected to add to Dow Chemical's operating earnings
per share, cash flow from operations and free cash flow in the
first full year after close.
Dow Chemical said it would take a charge of about $410 million
to $460 million in the second quarter for asset impairments,
severance and other costs.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Shounak
Dasgupta and Maju Samuel)
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