Westlake Corporation has announced plans to shut several U.S.-based manufacturing plants that produce PVC and related feedstocks critical to the wire and cable industry. The company cited prolonged weakness in global chlorovinyl and styrene markets as the primary driver behind the decision. Full details of the announcement are available on the company’s website at https://www.westlake.com.
Facilities affected by the shutdowns
Westlake will close its suspension PVC facility in Aberdeen, Mississippi, which has an annual production capacity of 1 billion pounds. The company will also shut its vinyl chloride monomer (VCM) plant in Lake Charles, Louisiana, with capacity of 910 million pounds per year.
At the same Lake Charles site, Westlake will idle one diaphragm chloralkali unit with annual capacity of 825 million pounds of chlorine and 910 million pounds of caustic soda. The company will also shut its 570 million pounds per year styrene plant located at the complex.
Continued supply commitments to customers
Despite the closures, Westlake confirmed it will continue supplying customers with PVC, VCM, and chloralkali products from its seven remaining North American chlorovinyl facilities. Company leadership stated that the shutdowns will improve cost efficiency, optimize asset utilization, and better align production with current and anticipated demand while maintaining reliable supply.
Following the changes, Westlake will retain 5.52 billion pounds per year of global PVC capacity, including 4.9 billion pounds per year in North America. The company will also maintain global capacities of 7.63 billion pounds per year of VCM and 6.68 billion pounds per year of chlorine.
Industry analysis points to overcapacity
Industry observers view the move as part of a broader capacity realignment across the U.S. chemicals sector. PlasticsToday reported that Westlake targeted older, higher-cost assets challenged by unfavorable logistics and weaker export margins. Analysis from ICIS linked the timing to global overcapacity and softer downstream demand, particularly in construction-driven PVC applications, even as analysts anticipate a potential demand recovery around 2026.
Other producers adjust U.S. capacity
Westlake is not alone in adjusting production. ICIS reported that Olin Corporation plans to shut approximately 450,000 ECU of asbestos diaphragm chloralkali capacity at its Freeport, Texas facility, following earlier closures in McIntosh, Alabama. Olin continues converting its Plaquemine, Louisiana operations to non-asbestos technology, as outlined at https://www.olin.com.
Meanwhile, Argus noted that major PVC producers Formosa and Shintech recently brought significant new PVC capacity online in the U.S., adding further pressure to an already oversupplied market.
