Westlake to shut Germany PVC plant, cut 120 jobs
Westlake to shut Germany PVC plant, cut 120 jobs Sept 29 (Reuters) - US chemical company Westlake WLK.N said on Tuesday it will shut its PVC plant in Cologne, Germany, in the first quarter of 2027, cutting 120 jobs as it shifts production to lower-cost sites.
The company also said it expects its third-quarter financial performance to decline sequentially, citing lower PVC and polyethylene prices in North America, higher freight costs and weaker housing activity.
Here are more details:
Westlake expects the closure to result in about $205 million of pre-tax charges, including $100 million in cash charges and $105 million in non-cash charges
It expects to incur about $110 million of the charges this year, and the rest in 2027
The Cologne site has annual PVC production capacity of about 165,000 metric tons
The company said PVC and polyethylene prices in North America fell in the third quarter after rising in the second quarter, as increases initially seen following the onset of the Iran conflict moderated
Higher diesel prices have also increased freight costs, while rising interest rates have slowed housing activity, pressuring sales in its Housing and Infrastructure Products segment
The closure is expected to improve the ongoing profitability of Westlake's European chlorovinyl operations
(Reporting by Arunima Kumar in Bengaluru; Editing by Diti Pujara)
((Arunima.Kumar@thomsonreuters.com;))
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Brief: Westlake Corp - Cologne Pvc Plant Closure To Result In Reduction Of 120 Employees