Dow Chemical delays construction on multi-billion-dollar Path2Zero project in Fort Saskatchewan, Alberta, Canada

After a reported Q1 loss, Dow Chemical plans to launch an action plan to further reduce spending and deliver $6 B in cash support. The plan includes delaying construction on the company's multi-billion-dollar Path2Zero project in Alberta, Canada.

REDUCING SPENDING, RIGHT-SIZING CAPACITY, AND DELIVERING CASH SUPPORT

• Delaying construction of Fort Saskatchewan Path2Zero project to match market conditions.
• Expanding the Company's previously announced review of European assets, primarily in Polyurethanes. Additional scope includes three upstream assets across all operating segments for further action.
• Taken together, these new and previously announced actions total approximately $6 billion in cash support to effectively manage the extended downcycle.
  • Up to approximately $3 billion from the Company's strategic growth-aligned partnership with Macquarie Asset Management to create a newly formed infrastructure-focused company – Diamond Infrastructure Solutions – resulting in the sale of a minority stake in select U.S. Gulf Coast infrastructure assets; first tranche of $2.4 billion anticipated at closing on May 1.
  • Greater than $1 billion in proceeds from the NOVA judgment in 2025.
  • At least $1 billion in targeted cost savings by 2026, including approximately $300 million in 2025.
  • Approximately $1 billion in CapEx reductions in 2025.

CEO QUOTE
"We remain focused on disciplined execution and increased actions to improve profitability and support cash flow," said Jim Fitterling, Dow chair and CEO. "Despite ongoing macroeconomic challenges, Team Dow delivered a sixth consecutive quarter of year-over-year volume growth while taking actions to reduce costs and right-size capacity. The significant impact of slower GDP growth and volatile market conditions on our industry underscores the importance of our proactive management and best-owner mindset. Today's announcements build on Dow's cost actions that are already underway, aiming to further strengthen our financial flexibility and support a balanced capital allocation approach."

DELAYING CONSTRUCTION AT FORT SASKATCHEWAN PATH2ZERO PROJECT 
Following a comprehensive review, Dow has decided to delay construction of its Path2Zero project in Fort Saskatchewan, Alberta, Canada until market conditions improve. The Company now expects Dow's total enterprise 2025 CapEx to be $2.5 billion compared to its original plan of $3.5 billion.

Dow remains committed to its Path2Zero project and the growth upside it will enable in targeted applications like pressure pipe, wire and cable, and food packaging. The project is being built at an existing Dow site in a significantly cost-advantaged region. It is expected to be a first quartile asset with attractive returns and the added benefit of being the world's first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives facility.

EXPANDING SCOPE OF EUROPEAN ASSET REVIEW 
In addition, the Company is expanding its previously announced European asset review, which is focused on addressing the persistently challenging demand dynamics and regulatory environment in the region. The Company is committed to completing the full review by mid-2025, including all value-creating options for its Polyurethanes business in the region. Dow has identified three initial assets across all of its operating segments that it believes will require further action. The assets listed below represent higher-cost, energy intensive upstream portions of the Company's portfolio, including potential outcomes:

• Packaging & Specialty Plastics: Ethylene cracker in Böhlen, Germany, resulting in idle or shut down
• Industrial Intermediates & Infrastructure: Chlor-alkali & vinyl (CAV) assets in Schkopau, Germany, resulting in idle or shut down
• Performance Materials & Coatings: Basics siloxanes plant in Barry, U.K., resulting in shut down

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