Executives from Dow Chemical said the company is seeing early signs of recovery in demand for durable plastics from the automotive, construction, furniture, and bedding sectors, in line with the gradual resumption in the global economy after emerging from widespread coronavirus pandemic-related shutdowns in April through June.
Dow Chemical has restarted a polyethylene (PE) in Bahia Blanca, Argentina and two other PE plants in Texas that it shut in April due to weak demand. CEO Jim Fitterling, during the company’s latest quarterly earnings calls, said that Dow’s ethylene and PE operating rates had rebounded to year-ago levels.
However, Dow said that it would cut the cost further and lay off 6% of its global workforce during the expected gradual recovery. In the second quarter of 2020, the company posted a net loss of $225 million, compared to a net profit of $75 million in the same quarter last year.
Fitterling said that demand for packaging and disposable plastics continued to remain robust. However, it was overshadowed by tepid demand for durable plastics that are usually applied in vehicles and homes. CFO Howard Ungerleider said demand for plastics used in food packaging, hygiene and health care items would likely to stay healthy.
