Westlake Corporation Plans to Close Three Vinyl Chloride Production Plants in the U.S
2025-12-22
Westlake Corporation, a U.S. chemical giant, announced on December 15 its decision to close three vinyl chloride production plants and one styrene plant in the United States, in a bid to boost the profitability of its Performance and Essential Materials (PEM) business. Approximately 295 employees will be laid off as a result.
Jean-Marc Gilson, CEO of Westlake Corporation, stated that given the severe market challenges confronting the global commodity chemicals industry, the company has made the difficult decision to cease operations at three facilities under its North American vinyl chloride business and a styrene manufacturing unit in Lake Charles, Louisiana, as part of its business operation review.
Financial reports indicate that the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of the PEM segment plunged year-on-year in the third quarter, dropping from $297 million to $90 million, with the profit margin sliding from 15% to 5%. Additionally, the North American vinyl chloride business recorded a non-cash goodwill impairment loss of $727 million.
The plants to be closed by Westlake Corporation include a 450,000-ton-per-year suspension polyvinyl chloride (PVC) plant in Aberdeen, Mississippi; a 413,000-ton-per-year vinyl chloride monomer (VCM) plant in Lake Charles, Louisiana; a diaphragm chlor-alkali plant in Lake Charles with an annual production capacity of 375,000 tons of chlorine and 413,000 tons of caustic soda; and a 259,000-ton-per-year styrene plant in Lake Charles. These facilities are expected to be closed in December 2025.
Following the shutdown, Westlake Corporation will have an annual suspension PVC production capacity of 2.5 million tons (2.2 million tons in North America); a VCM production capacity of 3.5 million tons (2.7 million tons in North America); and an annual production capacity of 3 million tons of chlorine and 3.4 million tons of caustic soda (2.5 million tons of chlorine and 2.8 million tons of caustic soda in North America).
Jean-Marc Gilson, CEO of Westlake Corporation, stated that given the severe market challenges confronting the global commodity chemicals industry, the company has made the difficult decision to cease operations at three facilities under its North American vinyl chloride business and a styrene manufacturing unit in Lake Charles, Louisiana, as part of its business operation review.
Financial reports indicate that the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of the PEM segment plunged year-on-year in the third quarter, dropping from $297 million to $90 million, with the profit margin sliding from 15% to 5%. Additionally, the North American vinyl chloride business recorded a non-cash goodwill impairment loss of $727 million.
The plants to be closed by Westlake Corporation include a 450,000-ton-per-year suspension polyvinyl chloride (PVC) plant in Aberdeen, Mississippi; a 413,000-ton-per-year vinyl chloride monomer (VCM) plant in Lake Charles, Louisiana; a diaphragm chlor-alkali plant in Lake Charles with an annual production capacity of 375,000 tons of chlorine and 413,000 tons of caustic soda; and a 259,000-ton-per-year styrene plant in Lake Charles. These facilities are expected to be closed in December 2025.
Following the shutdown, Westlake Corporation will have an annual suspension PVC production capacity of 2.5 million tons (2.2 million tons in North America); a VCM production capacity of 3.5 million tons (2.7 million tons in North America); and an annual production capacity of 3 million tons of chlorine and 3.4 million tons of caustic soda (2.5 million tons of chlorine and 2.8 million tons of caustic soda in North America).