Westlake to Close Cologne PVC Plant and Take About $205 Million in Charges

Has Westlake already closed the Cologne PVC plant?

No. Westlake approved the closure plan on September 24, 2026, began local works-council consultations on September 29, and expects operations to cease in the first quarter of 2027.

Orbitrum Investor Impact

How much will the Cologne plant closure cost?

Westlake estimates about $205 million of pre-tax charges, including approximately $100 million of cash costs and $105 million of non-cash charges.

Why does the closure matter for Westlake's business?

Westlake plans to move customer supply to other lower-cost chlorovinyl facilities, including Wilhelmshaven, and expects the restructuring to improve the ongoing profitability of its European chlorovinyl operations.

How much production capacity and employment are affected?

The Cologne plant has annual PVC capacity of about 165,000 metric tons, and the closure is expected to reduce the workforce by approximately 120 employees.

What could the closure mean for Westlake shareholders?

The closure will reduce reported earnings through restructuring charges and require about $100 million of estimated cash spending, while the longer-term benefit depends on successfully shifting production to lower-cost sites and improving European profitability.

What happens next?

Westlake expects about $110 million of the charges to be recognized in 2026 and the remainder in 2027, while some cash outflows may continue for several years as the closure is completed.