Westlake to shut Germany PVC plant, cut 120 jobs
WLK•Westlake will close its Cologne PVC plant in the first quarter of 2027, cutting 120 jobs and expecting about $205 million in pre-tax charges. It also expects third-quarter financial performance to decline sequentially.
1. Cologne plant closure
Westlake said it will close its PVC plant in Cologne, Germany, in the first quarter of 2027, cutting 120 jobs as it shifts production to lower-cost sites. The plant has annual PVC production capacity of about 165,000 metric tons. The closure is expected to result in about $205 million of pre-tax charges, including $100 million in cash charges and $105 million in non-cash charges; about $110 million is expected this year, with the rest in 2027. Westlake said the closure is expected to improve the ongoing profitability of its European chlorovinyl operations.
2. Third-quarter outlook
Westlake expects third-quarter financial performance to decline sequentially, citing lower North American PVC and polyethylene prices, higher freight costs and weaker housing activity. The company said those prices 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 increased freight costs, while rising interest rates slowed housing activity and pressured sales in its Housing and Infrastructure Products segment.
