Westlake Corporation announced that it will permanently shut three of its North American chlorovinyl production units and its 570‑million‑pound‑per‑year styrene plant in Lake Charles, Louisiana, as part of a broader restructuring of its Performance & Essential Materials segment. The closures will reduce the company’s North American chlorovinyl capacity to 5,520 million pounds of suspension PVC, 7,630 million pounds of vinyl chloride monomer (VCM), and 6,680 million pounds of chlorine and caustic soda, while the Lake Charles facility will be taken offline in December 2025.
The company expects the shutdowns to cut annual operating costs by approximately $415 million, including $357 million in non‑cash asset write‑offs, $25 million in employee severance, and $33 million in other shutdown expenses. Westlake will also reduce its workforce by about 295 employees. The cost savings are intended to offset the declining margins that have plagued the Performance & Essential Materials segment, which reported a $158 million loss from operations in Q3 2025 compared with a $66 million profit in the same quarter a year earlier.
Westlake’s decision comes after a period of persistent overcapacity and weakening demand in the chlorovinyl and styrene markets. In Q3 2025 the company recorded a net loss of $38 million, largely driven by a $727 million impairment charge related to its North American chlorovinyl business. The segment’s earnings margin fell to a loss, prompting the company to streamline operations and focus on more profitable assets. The closures are therefore a direct response to the deteriorating economics of the legacy units, which have been unable to maintain acceptable margins in a market where pricing power has eroded.
CEO Jean‑Marc Gilson said the restructuring “will allow Westlake to focus on higher‑margin opportunities and improve the resilience of our core businesses.” He added that the company remains committed to supporting affected employees through severance and transition assistance. Gilson also highlighted the company’s ongoing investments in new projects, such as a new PVCO pipe facility and the acquisition of ACI, which are expected to generate higher returns and help offset the loss of capacity from the closures.
The remaining seven North American chlorovinyl facilities will continue to supply customers, and Westlake expects the cost savings to translate into a $100 million annual EBITDA improvement and $75 million in cash savings from reduced capital spending and turnaround costs. The company’s guidance for the remainder of 2025 reflects confidence that the restructuring will stabilize margins and position Westlake for a more sustainable growth trajectory in the face of global overcapacity and weaker industrial demand.
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