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Westlake to close three US chlor-vinyl plants and exit styrene business
Westlake has announced the closure of several US production facilities as part of measures to improve profitability. Approximately 295 jobs will be affected.
Westlake has announced plans to shut down three chlor-vinyl production plants and one styrene facility in the United States by the end of December 2025. The decision is aimed at improving the profitability of the company’s Performance and Essential Materials segment. As part of the move, Westlake will fully exit the styrene business.
The closures affect facilities in Aberdeen, Mississippi, and Lake Charles, Louisiana. Around 295 employees are expected to be impacted. According to the company, supply of polyvinyl chloride, vinyl chloride monomer and chlor-alkali products will continue from its remaining seven chlor-vinyl facilities in North America.
Market overcapacity cited as key driver
Westlake attributes the decision to persistent global overcapacity, particularly in the chlor-vinyls chain and the styrene market, which has weighed heavily on margins and earnings. In its third-quarter results, the company reported a non-cash impairment charge of USD 727 million related to its North American chlor-vinyls business.
The company expects the closures to generate an annual EBITDA improvement of around USD 100 million from 2026 onward, alongside additional cash savings through reduced capital expenditure and maintenance costs. Westlake noted that the affected plants primarily served export markets and faced structural cost disadvantages.
