Westlake Corporation, a Houston-based chemical manufacturer, is laying off 295 employees and closing four production facilities on the U.S. Gulf Coast this month, citing overcapacity and increased low-priced Asian exports. The closures affect PVC, VCM, chlor-alkali, and styrene units, signaling significant supply-chain shifts for buyers of these bulk chemicals.
Facilities affected
The closures include a polyvinyl chloride (PVC) plant in Aberdeen, Mississippi, with annual capacity of about 1 billion pounds of suspension PVC resin; a vinyl chloride monomer (VCM) plant at Lake Charles, Louisiana North site (910 million pounds/year); a diaphragm chlor-alkali unit at Lake Charles South site (825 million pounds chlorine, 910 million pounds caustic soda); and a styrene production plant at Lake Charles (570 million pounds/year). All operations will cease before the end of the year.
Financial impact
Westlake expects approximately $415 million in pre-tax costs from the closures, including $357 million in noncash accelerated depreciation, amortization, and asset write-off charges, $25 million in employee severance and separation costs, and about $33 million in other shutdown expenses. The company will record these charges in its fourth-quarter 2025 results.
Market pressures
In a December 15 investor presentation, Westlake noted its Performance and Essential Materials segment faced low market pricing due to overcapacity of certain products and an increase in low-priced Asian exports. This competitive pressure drove the decision to rationalize production capacity along the U.S. Gulf Coast.
What buyers should watch
Despite the closures, Westlake says seven North American chlorovinyl facilities will remain operational, and the company plans to continue supplying customers with PVC, VCM, and chlor-alkali products from those sites. Importers and distributors should monitor potential tightening of domestic supply for these commodities, especially caustic soda and PVC, and watch for possible price adjustments as regional capacity contracts.
Company statement
"I want to recognize the dedication and contributions of all our employees, including the ones who will be leaving us," said Jean-Marc Gilson, president and CEO of Westlake Corp. "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."
Source: Read the original report | Published: December 17, 2025