Dow Chemical Co., the largest U. S. chemical maker has decided to slash 5,000 full-time jobs, close 20 plants and sell several businesses to rein in costs as a result of economic recession.

The latest job cut reflects about 11 percent of its total work force. The company expects that the plan will help save about $700 million per year by 2010.

In addition, the Midland, Mich.-based chemical giant Dow will also temporarily idle 180 plants and prune over 6,000 contractors as per the cost-reduction plans. However, the firm does not clarify that which workers and plants will be affected with the latest move.

Last month, Dow said it would review all options to reduce costs and eliminate or defer capital spending. The company provides materials for pharmaceuticals, packaging, auto components, construction, textiles, electronics and more.

DuPont, the third-biggest U. S. chemical maker, last week said it will close plants at 10 production sites, idle 100 factories and eliminate 4.2 percent of its workforce. Apart from this, BASF, the world's biggest chemical company, is also shutting down 80 factories and reducing production at 100 more.

Dow soared $1.37, or 7.2 percent, to $20.37 in NYSE at the close of Monday Trading.