Houston-based Westlake Corporation is shutting down four manufacturing units along the Gulf Coast and laying off nearly 300 workers by the end of December, citing ongoing struggles in the global chemical market.
“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,” said Jean-Marc Gilson, Westlake’s president and CEO.
According to a Dec. 15 filing with the Securities and Exchange Commission and a company news release, the closures will affect plants in Mississippi and Louisiana. About 295 jobs will be cut as a result.
Four Major Facilities Shutting Down
Operations will cease this month at the following sites:
- A polyvinyl chloride (PVC) plant in Aberdeen, Mississippi, which has an annual capacity of about 1 billion pounds of suspension PVC resin.
- A vinyl chloride monomer (VCM) plant at the Lake Charles North site in Louisiana produces roughly 910 million pounds of VCM annually.
- A diaphragm chlor-alkali unit at the Lake Charles South site, with capacity for 825 million pounds of chlorine and 910 million pounds of caustic soda each year.
- A styrene production facility at the Lake Charles site, with an annual output of about 570 million pounds.
These facilities make chemicals used in everyday products, including piping, wire coatings, packaging materials, and takeout containers.
Westlake expects the closures to result in roughly $415 million in pre-tax costs.
That includes $357 million in non-cash charges for depreciation, amortization, and asset write-offs; $25 million for employee severance and separation; and $33 million in additional shutdown-related expenses.
Layoffs Confirmed as Employees Notified
According to SEC filings, affected workers are receiving severance packages, and Westlake says it is offering support during the transition.
“I want to recognize the dedication and contributions of all our employees, including the ones who will be leaving us,” Gilson said.
“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 has not said whether any of the facilities might be reopened in the future.
Remaining Operations
Despite the closures, Westlake noted that seven other North American chlorovinyl facilities will remain operational.
The company says it plans to continue supplying customers with PVC, VCM, and chlor-alkali products from those plants.
The decision comes as the global chemical industry continues to face intense headwinds.
The downturn in pricing and oversupply has especially hurt manufacturers tied to construction and packaging sectors, where demand has cooled in recent quarters.
The affected Westlake plants are part of its Performance and Essential Materials segment, which has experienced financial pressure due to the competitive landscape and softening market demand.
The company, founded in 1986 and headquartered in Houston, employs thousands worldwide and manufactures a wide range of products used in housing, infrastructure, packaging, and automotive applications.
For now, Westlake is focusing on consolidating operations and adapting to changing market realities.