Westlake Corp Announces Closure of Cologne PVC Plant, $205M Charge

What Happened
Westlake Corporation announced on September 24, 2026 that it approved a plan to cease operations at its PVC production plant in Cologne, Germany (≈165,000 metric tons annual capacity). The company initiated consultations with local works councils and notified affected employees on September 29, 2026. Cessation of operations is expected in Q1 2027, with a workforce reduction of about 120 employees. Westlake said it will continue supplying customers from its other chlorovinyl facilities, including the recently acquired Wilhelmshaven site.

Key Details

• Total expected pre-tax charges: approximately $205 million (provisional).
  • Non-cash charges: ≈ $105 million (≈ $60M accelerated depreciation/amortization; ≈ $45M asset write-offs).
  • Cash charges: ≈ $100 million (≈ $20M employee severance/separation; ≈ $80M contract termination, decommissioning and other shutdown costs).
• Timing: about $75M of non-cash and $35M of cash charges expected in 2026; remaining charges expected in 2027. Some cash outflows will occur over several subsequent years.
• The company furnished a press release on September 29, 2026 with the closure announcement and a Q3 2026 financial performance update (Exhibit 99.1).

Why It Matters
The closure reduces Westlake’s Cologne manufacturing footprint and reallocates volumes to lower-cost facilities, which management says should lower operating costs in its chlorovinyl platform. Financially, the announced charges (non-cash and cash) will affect reported pre-tax results and, in the near term, the company’s cash flow due to severance and shutdown costs. Estimates are provisional and may change as the company implements the plan; Westlake will update amounts in its SEC periodic reports.