Westlake Corporation is closing its polyvinyl chloride (PVC) plant in Cologne, Germany, as weak demand, high energy costs and rising imports squeeze Europe’s chemical industry.
The Houston-based company said the Cologne facility, which produces about 165,000 metric tons of PVC annually, is more costly to operate than its other European sites because of its smaller scale and higher logistical costs.
Operations are expected to end in the first quarter of 2027. Westlake said it will continue supplying customers from its other German PVC facilities, including its recently acquired site in Wilhelmshaven.
The shutdown comes as pressure mounts across the global chemicals market. Westlake said PVC and polyethylene prices in North America have fallen sequentially in the third quarter, while price gains recorded in the second quarter after the onset of the Iran conflict have moderated.
The company is also facing higher freight costs following a surge in diesel prices and weaker sales in its Housing & Infrastructure Products segment as rising interest rates weigh on housing activity.
Westlake expects its third-quarter 2026 financial performance to decline sequentially from the second quarter.
“Given the persistent, challenging market conditions facing the global chemical industry, we have made the difficult decision to cease operations at our Cologne, Germany PVC site as part of our ongoing optimization of business operations,” said Westlake President and Chief Executive Officer Jean-Marc Gilson.
“We will continue to supply our valued customers with PVC produced at our other German facilities. I want to recognize the dedication and contributions of all our employees, including those who will be leaving us. We appreciate their efforts over the years, and we are committed to treating everyone impacted with respect and to supporting them through this transition.”
The closure is expected to cost Westlake about $205 million in total pre-tax charges, including approximately $100 million in cash charges and $105 million in non-cash charges.
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