Dow Chemical to shed 1,000 jobs

Dow is one of America's biggest chemical firms

American chemical firm Dow Chemical is to cut 1,000 jobs and shut plants, in an effort to cut costs.

The firm, one of America's largest chemical companies, has been hit by rising costs in the past year.

Dow said it would leave the automotive sealers business in North America, Asia and Latin America and "explore strategic options" in Europe.

The firm said it would take a charge of $500m-$600m for the cuts, but they would lead to annual savings of $180m.

Dow chairman and chief executive Andrew Liveris said the move "reflects our commitment to prune businesses that are not delivering appropriate value and tackle tasks more efficiently across the entire organisation".

Analysts have so far welcomed the news, but warn that the continued rise in raw material and other costs may negate its impact.

"Cost reduction is always good, because the chemical industry is very slow at cost cutting, so clearly this is a step in the right direction," HSBC analyst Hassan Ahmed said.

Dow Chemical employs about 43,000 people worldwide.

Shares in the firm closed down 49 cents at $41.05 on Tuesday.