Westlake Corporation said in a filing with the SEC that it is closing its polyvinyl chloride plant in Cologne, Germany, as part of an effort to improve profitability amid challenging market conditions.
The company said chemical production in Europe continues to face weak demand, elevated energy costs and increased import pressure from Asia. Westlake said the Cologne plant has higher costs than its other European PVC sites due to its smaller scale and higher logistical burden.
Westlake said it will continue to serve customers from its remaining, lower-cost PVC facilities in Germany, including its recently acquired Wilhelmshaven site. The Cologne facility has annual production capacity of approximately 165,000 metric tons of PVC per year, according to the filing.
The company said it expects to record total pre-tax charges of approximately $205 million in connection with the closure, consisting of about $100 million in cash charges and about $105 million in non-cash charges. Approximately $110 million of these charges are expected to be recorded in 2026, with the remainder in 2027. The site is expected to cease operations in the first quarter of 2027.
Westlake also disclosed broader pricing and cost pressures. PVC and polyethylene average prices in North America in the third quarter of 2026 are lower than in the second quarter, as price increases following the onset of the Iran conflict have moderated. In its Housing & Infrastructure Products segment, the company said it has experienced higher freight costs from a surge in diesel prices and a moderate decline in sales volume tied to a slowdown in housing activity amid rising interest rates.
Westlake said it expects sequentially lower financial performance in the third quarter of 2026 compared with the second quarter. President and CEO Jean-Marc Gilson said the company made the decision as part of its ongoing optimization of business operations and said Westlake is committed to supporting affected employees through the transition.
$WLKWestlakeNet sentiment—Mentions · 30d—Avg volume335,108View on the dashboardFinazon · prior-day close, indicative (IEX-derived, not the official close) · Jul 17, 2026