Wedoany.com Report-Dec.17, Westlake Corp., based in Houston, has decided to discontinue operations at selected North American production units within its chlorovinyls segment and its styrene facility.

The affected sites include the polyvinyl chloride (PVC) plant in Aberdeen, Mississippi, with an annual output capacity of about 1 billion pounds of suspension PVC resin; the vinyl chloride monomer (VCM) unit at the Lake Charles, Louisiana North location, capable of producing roughly 910 million pounds of VCM yearly; and one diaphragm chlor-alkali facility at the Lake Charles, Louisiana South site, with capacities of approximately 825 million pounds of chlorine and 910 million pounds of caustic soda annually.

Additionally, the styrene production plant at the Lake Charles, Louisiana complex, which has an annual capacity of around 570 million pounds of styrene, will also cease activities.

Shutdowns are scheduled for December 2025. These measures will impact approximately 295 positions.

Westlake anticipates incurring pre-tax expenses of about $415 million associated with the closures, comprising non-cash charges for accelerated depreciation, amortization, and asset impairments totaling roughly $357 million; employee separation costs of approximately $25 million; and other decommissioning expenses of about $33 million.

Customer requirements for PVC, VCM, chlor-alkali products, and styrene will continue to be met through the company's remaining seven North American chlorovinyls sites and other operational assets.

Post-closure, Westlake's global capacities are projected to include around 5,520 million pounds of suspension PVC annually (with 4,900 million pounds in North America), 7,630 million pounds of VCM (including 6,050 million pounds in North America), and 6,680 million pounds of chlorine alongside 7,510 million pounds of caustic soda (with 5,410 million pounds of chlorine and 6,100 million pounds of caustic soda in North America).

"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.”

This adjustment reflects an assessment of ongoing sector dynamics, allowing Westlake to concentrate resources on more efficient facilities while maintaining supply commitments.

By consolidating production at higher-performing locations, the company aims to enhance overall operational effectiveness and adaptability.

The retained network preserves substantial regional capacity, supporting continued service to downstream industries reliant on these foundational chemical building blocks.

Employee support during the transition underscores attention to workforce impacts amid restructuring.

Financial provisions for closure costs demonstrate prudent planning for associated expenditures, primarily non-cash in nature.

Styrene cessation similarly aligns with portfolio optimization in commodity segments experiencing sustained pressure.

Westlake's strategy emphasizes resilience through focused asset management, positioning the organization to navigate variable market environments.

These changes enable reallocation toward areas of competitive strength within the broader chemicals landscape.

Overall, the decisions balance short-term adjustments with long-term stability in product availability and organizational structure.