Westlake Corporation, a Houston-based chemical manufacturing company, has announced plans to shut down four facilities along the Gulf Coast, a move that will result in the layoff of nearly 300 employees by the end of the year.
In a news release issued Monday, Westlake Corp. confirmed that operations will cease this month at several sites in Mississippi and Louisiana. The closures are expected to impact approximately 295 workers across the affected locations.
The facilities slated for closure include a polyvinyl chloride plant at Westlake’s Aberdeen, Mississippi site, which has an annual capacity of about 1 billion pounds of suspension PVC resin. The company will also shut down a vinyl chloride monomer plant at its Lake Charles, Louisiana, North site, which produces roughly 910 million pounds of VCM annually.
In addition, Westlake will close a diaphragm chlor-alkali unit at the Lake Charles South site, a facility capable of producing approximately 825 million pounds of chlorine and 910 million pounds of caustic soda each year. A styrene production plant located at the Lake Charles site, with an annual capacity of around 570 million pounds of styrene, will also cease operations.
According to the release, the company expects to incur about $415 million in pre-tax costs related to the shutdowns. Those costs include approximately $357 million in noncash accelerated depreciation, amortization, and asset write-off charges, along with $25 million tied to employee severance and separation expenses. An additional $33 million is expected to cover other plant shutdown-related costs.
Westlake previously signaled financial pressure within parts of its business. In a December 15 presentation to investors, the company said its Performance and Essential Materials segment has been strained by low market pricing. The Houston Business Journal reported that Westlake attributed this pressure to overcapacity in certain product markets and an influx of low-priced exports from Asia.
Despite the closures, Westlake emphasized that it will continue to operate seven chlorovinyl facilities across North America. The company said it plans to maintain supply to customers by producing PVC, VCM, and chlor-alkali products at those remaining sites.
Company leadership acknowledged the impact of the decision on employees. “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., in the release. “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.”
The announcement adds to ongoing concerns about job losses in the manufacturing sector, particularly in industries facing global competition and shifting market dynamics. For affected workers and communities along the Gulf Coast, the closures mark the end of long-standing industrial operations and the beginning of an uncertain transition.
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