Rising gas prices have been blamed for the closure of Dow's Melbourne plant.Credit:John Woudstra
The company said the plant,which opened in the 1970s,was struggling under pressure of rising costs and the company's ability to supply the Asia region through its new factories in Thailand and the Middle East.
"There[were] a range of factors that have impacted the plant's economic viability,"said Dow's Australia and New Zealand president and managing director,Karen Dobson.
"Energy is one of a number of factors considered in the assessment,including increasing operations and manufacturing costs ... No single factor drove the assessment conclusion."
Gas prices in Australia have increased sharply in recent years amid supply pressures that have sparked warningsof a potential east-coast shortage.
AWU Victorian secretary Ben Davis.Credit:Wayne Taylor
The situation has fuelled calls from industry and unions for state and federal government action to ensure gas exports do not come at the expense of adequate local supply and also for state government moratoriums on exploitation of onshore reserves to be lifted.
"While politicians bicker,companies close,"said Ben Davis,Victorian secretary of the Australian Workers Union,which represents Dow employees