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Westlake to Rationalize Certain North American Chlorovinyl and Styrene Assets

  • Westlake Corporation approved plans to cease operations of three North American chlorovinyl facilities: a PVC plant in Aberdeen, Mississippi; a VCM plant in Lake Charles, Louisiana North; and a diaphragm chlor-alkali unit in Lake Charles, Louisiana South.
  • The company also approved the closure of its styrene production plant located in Lake Charles, Louisiana.
  • Cessation of operations for all affected facilities is scheduled to occur in December 2025.
  • The closures are expected to result in a workforce reduction of approximately 295 employees.
  • Westlake expects to incur total pre-tax costs of approximately $415 million related to the closures, including $357 million in noncash charges, $25 million in severance costs, and $33 million in other shutdown costs.
  • Most of the noncash charges, severance costs, and shutdown costs will be recognized in the fourth quarter of 2025, with cash outflows expected over several years.
  • The company will continue supplying PVC, VCM, and chlor-alkali products from its seven remaining North American chlorovinyl facilities.
  • Post-closure global capacity is projected at 5,520 million pounds of suspension PVC, 7,630 million pounds of VCM, 6,680 million pounds of chlorine, and 7,510 million pounds of caustic soda.
  • Westlake will host a conference call on December 15, 2025, at 10:00 AM Eastern Time to discuss the closures and financial performance, featuring CEO Jean-Marc Gilson, CFO Steve Bender, and CAO Jeff Holy.