Dow will 'slow something down' if Europe restricts gas, CEO says

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Dow Inc. (NYSE:DOW) would cut some of its operations in Europe if the use of natural gas is curtailed because of reduced Russian supplies, CEO Jim Fitterling said Thursday after the company’s Q2 earnings release.

“We are looking at it from a standpoint of maintaining the business in Europe and trying to keep everything running in the event of a curtailment. But that would mean we’d have to slow something down,” Fitterling said during Dow’s (DOW) earnings conference call, according to Bloomberg.

The European Union is proposing to cut consumption of gas – a key feedstock for production of Dow’s (DOW) chemicals – by 15% over the next eight months.

Gas rationing in Germany would most severely hurt the metal production and processing, chemical and paper industries, according to a new study from the ZEW economic institute.

Germany’s Federal Statistical Office says 95% of natural gas used in Germany in 2021 was imported.

Dow (DOW) shares -2.7% as declining margins overshadow the company’s better than expected Q2 earnings and sales.