Westlake to close Cologne PVC plant, books $205 million in charges
The company also warned that third-quarter results will come in below the second quarter, citing weaker North American prices and higher freight costs
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Westlake plans to close its polyvinyl chloride plant in Cologne, Germany, ending operations there in the first quarter of 2027. The plant has annual production capacity of about 165,000 metric tons. The closure will cut roughly 120 jobs.
The company expects total pre-tax charges of about $205 million tied to the shutdown. Roughly $105 million of that is non-cash, with the remaining $100 million in cash costs. Westlake said about half the charges will land in 2026, with the rest in 2027.
Westlake also said it expects third-quarter 2026 results to come in lower than the second quarter. The company pointed to lower North American PVC and polyethylene prices, higher freight costs and a moderate drop in sales volume in its Housing & Infrastructure Products segment.
The Cologne closure shows how far European PVC economics have fallen, with Westlake choosing to exit 165,000 metric tons of capacity rather than run it through a downturn that management does not expect to reverse soon. The weaker third-quarter guidance suggests the pressure is not confined to Europe: softer North American pricing, rising freight costs and slower housing-related volumes point to broad chemical pricing weakness rather than a regional problem, and together the two disclosures point to a harder near-term earnings path for the company.