Dow Inc. said it’s delaying construction at a major chemicals project in Canada until market conditions improve, cutting the U.S. company’s capital spending plan for the year by US$1 billion.
Dow’s decision follows U.S. President Donald Trump’s trade tariffs that have fuelled business uncertainty and roiled financial markets in recent weeks.
The company said Thursday it’s still committed to the Path2Zero project in Fort Saskatchewan. It now sees overall enterprise capital spending for this year at $2.5 billion, compared with an original plan for $3.5 billion.
“Our industry continues to experience challenging market conditions that are expected to persist in the near-term, given increased macroeconomic and geopolitical volatility,” Dow said in presentation slides posted on its website.
Dow shares fell 0.9% before the start of regular trading in New York.
Announced in 2021, Path2Zero comprises a new facility and retrofitting an existing plant to boost production of ethylene, a raw material used to make plastics. The project is envisaged as being the first integrated ethylene cracker and derivatives facility with net zero emissions on a Scope 1 and Scope 2 basis.
Simon Casey, Bloomberg News
©2025 Bloomberg L.P.
