US-listed chemical firm Westlake Corporation has announced that it will shutter several North American chemical production facilities, including key chlorovinyl and styrene plants, citing ongoing challenges in the global commodities chemicals market.
The closures include: The polyvinyl chloride (PVC) plant in Aberdeen, Mississippi, with an annual capacity of about 1 billion pounds of suspension PVC resin; The vinyl chloride monomer (VCM) plant at Lake Charles, Louisiana North, producing approximately 910 million pounds of VCM annually.
One diaphragm chlor-alkali unit at Lake Charles, Louisiana South, producing roughly 825 million pounds of chlorine and 910 million pounds of caustic soda per year; and the styrene production plant at Lake Charles, Louisiana, with an annual capacity of about 570 million pounds.
Westlake will continue supplying PVC, VCM, and chlor-alkali products from its seven other North American chlorovinyl facilities. Following the closures, the company expects to maintain annual production capacity of 5,520 million pounds of suspension PVC globally, 7,630 million pounds of VCM globally, and 6,680 million pounds of chlorine and 7,510 million pounds of caustic soda globally.
Cessation of operations at the affected facilities is scheduled for December 2025, resulting in a workforce reduction of approximately 295 employees.
Westlake anticipates total pre-tax costs of roughly $415 million related to the closures, including $357 million in noncash depreciation, amortization, and asset write-offs; $25 million in employee severance and separation costs; and $33 million in other plant shutdown expenses.
“Given the persistent, challenging market conditions facing the global commodities chemicals industry, as part of our evaluation of business operations, we have made the difficult decision to cease operation of three units within our North American Chlorovinyls business and cease operations of our Styrene manufacturing unit, located in Lake Charles, Louisiana.
"We will continue to supply our chlorovinyl customers with products produced at our other North American Chlorovinyls manufacturing facilities,” said Westlake President and Chief Executive Officer Jean-Marc Gilson.
“I want to recognize the dedication and contributions of all our employees, including the ones who will be leaving us. We appreciate their contribution over the years. We are committed to treating everyone impacted with respect and our focus is on supporting them through their transition.”
The company expects most of the non-cash depreciation, amortization, asset write-offs, severance, and shutdown costs to be recognized in Q4 2025, though cash outflows will occur over several years as the closures are completed.
