Dow Chemical Co. announced on Thursday that the company will be closing three of its Louisiana plants as part of a shift away from basic chemicals toward the more profitable specialty chemicals.

The closing of the plants was undertaken as a part of the company’ major cost cutting program after Dow bought rival Rohm & Haas in April for more than $16 billion. This deal added massive amounts of debt to its balance sheet. Dow is expecting to cut about a $100 million a year.

However, good news for about a hundred employees working there who’ll not be laid off and instead will be offered job elsewhere, Dow said.

These plants make ethylene, a building block for basic chemicals like plastic and packaging. The basic chemicals market is heavily affected by price fluctuations in crude. Their products are made and sold in large batches with minimal profit margins.