Westlake Corporation announced on September 24, 2026, that it has approved a plan to cease operations at its polyvinyl chloride (PVC) production plant located in Cologne, Germany. The facility has an annual production capacity of approximately 165,000 metric tons of PVC.
The company stated that the closure is intended to optimize its European chlorovinyl footprint. Due to its smaller scale and higher logistical burden, the Cologne plant has higher costs than the company’s other European PVC sites. Westlake plans to continue supplying customers from its remaining manufacturing facilities, including its recently acquired production site in Wilhelmshaven, Germany.
On September 29, 2026, the company initiated consultations with local works councils regarding the closure and notified affected employees. Operations at the facility are expected to cease in the first quarter of 2027, resulting in a workforce reduction of approximately 120 employees.
Westlake expects to incur total pre-tax charges of approximately $205 million related to the closure. This total consists of non-cash charges of approximately $105 million and cash charges of approximately $100 million. Non-cash charges are expected to include accelerated depreciation and amortization of approximately $60 million and asset write-off charges of approximately $45 million. Cash charges are expected to include employee severance and separation costs of approximately $20 million and contract termination, decommissioning, and other plant shutdown costs of approximately $80 million.
The company anticipates recognizing approximately $75 million of non-cash charges and $35 million of cash charges during 2026, with the remaining charges expected to be recognized during 2027. Certain cash outflows are expected to occur over several years through the completion of the closure.
In a press release issued on September 29, 2026, Westlake cited challenging market conditions, including weak demand, elevated energy costs, and increased import pressure from Asia, as the reasons for the decision. The company also noted that PVC and polyethylene average prices in North America were lower in the third quarter of 2026 compared to the second quarter of 2026.
