WAFB Channel 9, Baton Rouge, LA |Dow Chemical to take "aggressive actions" due to economic conditions

Dow Chemical to take "aggressive actions" due to economic conditions

By Keitha Nelson - bio | email

PLAQUEMINE, LA (WAFB) - A big announcement from Dow Chemical has left thousands of company employees wondering what will happen next. Dow employs about 6,000 people in Louisiana.

In a news release, the Dow company announced what it called "aggressive actions" to accelerate its transformational strategy in light of current economic realities that worldwide, according to the release, is eliminating approximately 5,000 full-time jobs, close 20 facilities in high-cost areas, and divest several non-strategic businesses.

It's not yet known how local plants could be affected, but economists say if cuts do hit Louisiana, the trickle-down effects would be quite a blow. Economist Loren Scott has kept a close eye on the latest trends. He says two sectors of our economy have been hit the hardest, the housing and automobile industries. "If you look in the make-up of the automobile sector, there's a lot of plastic and there's a lot of chemical product, rubber products in both. And so, I'm sure the chemical industry is starting to feel a hit from that."

Dow Chemical announced that worldwide, it plans to lay off thousands of full-time workers, close nearly two dozen plants, and temporarily shut down about 180 more. However, there's no word on whether any cuts will happen in Louisiana. Scott says for every job lost in the chemical industry, there's about 6.8 jobs lost somewhere else in the economy. "Construction sector, health care, retail trade, business, etc. This has the potential to be quite a blow to our area."

Chemical plant jobs are no doubt valuable. They are among some of the highest paying jobs in our economy. Right now, Louisiana is one of few states in the nation where employment is still growing. "This is one of those things, piled up on top of others, could actually reverse that trend, if we're not careful." Among all of the changes set to happen, Dow also plans to cut about 6,000 contractors from its payroll. People are simply hopeful those changes won't hit Louisiana.

Gary Cambre, a spokesman with the Plaquemine facility, says the plant does not know what the local impact of the announcement will be. The facility in West Baton Rouge is the largest petrochemical plant in the state and one of the biggest employers in the Baton Rouge region.