Dow Chemical said it plans to exit the automotive sealers business in North America, Asia Pacific and Latin America in the next nine to 18 months and close several plants around the world in an effort to reduce its overall cost structure.

The restructuring plan involves closing a Union Carbide polypropylene facility in Louisiana before the end of the year and reducing support functions at its Union Carbide site in South Charleston, W. Va. According to a company statement, "The decision was driven by a number of factors, including the substantial capital costs required to maintain long-term operations at the facility."

Dow will also idle a styrene plant in Brazil and the closure of a hydroxyethyl cellulose manufacturing facility in Brazil.

"Today's announcement reflects our commitment to prune businesses that are not delivering appropriate value and tackle tasks more efficiently across the entire organization...freeing up capital and resources that will be re-directed toward value-creating growth opportunities," said Andrew Liveris, Dow's CEO.

Dow is also issuing a series of North American price increases in an effort to offset cost increases. Among the materials it is looking to increase prices on in 2008 are propylene glycol, chlorinate solvents, surfactants and polyolefin films.