2026-10-08
- On 29 September 2026 Westlake announced it will close its PVC plant in Cologne, Germany, with operations expected to stop in the first quarter of 2027.
- The Cologne plant has annual PVC capacity of about 165,000 metric tons.
- Total pre-tax charges are about $205 million, made up of roughly $100 million in cash and $105 million non-cash.
- About $110 million is to be recorded in 2026 and the rest in 2027.
- Customers will be served from lower-cost German PVC plants, including the recently acquired Wilhelmshaven site.
US chemical company Westlake announced on 29 September 2026 that it will close its PVC (Polyvinyl Chloride) plant in Cologne, Germany. The plant has annual PVC capacity of about 165,000 metric tons, and operations are scheduled to stop in the first quarter of 2027, according to reports.
Westlake said it expects to record pre-tax charges of about $205 million, of which about $100 million is cash and about $105 million is non-cash. About $110 million is to be recorded in 2026 and the remainder in 2027.
The company cited weak European chemical demand, high energy costs, and import pressure from Asia. It also said the Cologne plant is smaller and has higher logistics costs than its other European PVC sites. Reuters reported that about 120 jobs will be cut by the closure.
The move is described as an optimization of the existing European chlorovinyl business rather than a new investment. Westlake said customers will be served from its remaining lower-cost German PVC plants, including the recently acquired Wilhelmshaven site. Chemxplore reported that the Wilhelmshaven acquisition was completed in June 2026 and that the site has PVC capacity of about 380,000 tonnes per year and a deep-water dock on the North Sea coast.
Westlake CEO Jean-Marc Gilson said the company made the difficult decision to cease operations at the Cologne site. The company expects the step to improve the profitability of its European chlorovinyl operations, and it said it will support affected employees through the transition.
In the same announcement Westlake said it expects weaker third-quarter 2026 results than in the second quarter. It pointed to lower North American PVC and polyethylene prices, higher freight costs from diesel prices, and slower housing-related demand as interest rates rise. This shows that the closure of a European plant is tied to wider market conditions affecting the whole company, not only to a single site.
The Cologne plant’s annual PVC capacity is about 165,000 metric tons. Total pre-tax charges are about $205 million, composed of about $100 million in cash and about $105 million non-cash. About $110 million is to be recognized in 2026 and the rest in 2027.
The job reduction is about 120, according to Reuters. Operations are due to stop in the first quarter of 2027. The Wilhelmshaven plant named as a destination for shifted volumes has PVC capacity of about 380,000 tonnes per year, more than double the Cologne figure.
As a market indicator, Reuters reported that Westlake shares (WLK) fell 2.94%. The company said it expects third-quarter 2026 results to be lower than second-quarter results.
Timeline
- June 2026: Westlake completed the acquisition of the Wilhelmshaven PVC site, according to Chemxplore.
- 29 September 2026: Westlake announced the closure of the Cologne, Germany PVC plant.
- 1 to 5 October 2026: Hydrocarbon Processing and Hydrocarbon Engineering reported the news.
- 2026: About $110 million of pre-tax charges are to be recorded this year.
- First quarter of 2027: Operations at the Cologne plant are expected to stop.
- 2027: The remaining pre-tax charges are to be recorded.
Note
- PVC (Polyvinyl Chloride): a general-purpose plastic made by polymerizing vinyl chloride monomer, widely used in construction materials such as pipes, window frames and flooring.
- Chlorovinyl: raw material from chlorine and caustic soda to make vinyl chloride monomer and PVC.