Westlake Corporation announced that it will shut several of its North American plants that make key PVC and related feedstocks due to business conditions.
A press release said that the company will close its suspension PVC plant in Aberdeen, Mississippi, which has 1 billion lb/year of PVC capacity; its vinyl chloride monomer (VCM) plant in Lake Charles, Louisiana, with 910 million lb/year of VCM capacity; one diaphragm chloralkali unit at the Lake Charles site with 825 million lb/year of chlorine and 910 million lb/year of caustic soda capacity; and its 570 million lb/year styrene plant at Lake Charles. Westlake said it will continue supplying customers with PVC, VCM and chloralkali products from its seven other North American chlorovinyl facilities.
In the same release, Westlake stated that “persistent, challenging market conditions in the global chlorovinyls and styrene markets require us to take decisive action to improve our overall cost position and asset efficiency,” adding that the rationalization will better align production with “current and anticipated demand” while still reliably serving customers. The company said that after the shutdowns it will retain 5.52 billion lb/year of PVC capacity globally, including 4.9 billion lb/year in North America, as well as 7.63 billion lb/year of VCM and 6.68 billion lb/year of chlorine capacity.
An article in PlasticsToday noted that Westlake is targeting older, higher cost assets facing expensive logistics and weaker export margins. An analysis by ICIS and other industry outlets linked the timing to a period of overcapacity and softer downstream demand, particularly in construction driven PVC applications, even as producers anticipate a potential recovery in PVC demand around 2026.
Westlake is not the only U.S. supplier to adjust capacity. An ICIS report said that Olin Corporation plans to shut about 450,000 ECU of asbestos diaphragm chloralkali capacity at Freeport, Texas, after already closing an older diaphragm unit at McIntosh, Alabama, while converting its Plaquemine, Louisiana, chloralkali facilities to non-asbestos technology. Argus and other sources have pointed out that major PVC producers Formosa and Shintech recently brought significant new PVC capacity online in the U.S., contributing to the current oversupplied environment.