This move comes as the company grapples with persistent macroeconomic challenges in Europe, despite some earlier signs of demand improvement.
Westlake Chemical, a major chemical manufacturer, announced its decision to fully close its Pernis, Netherlands facility, marking an expansion of its European footprint reduction strategy. The closure, which will affect the facility’s Liquid Epoxy Resin (LER) and bisphenol A (BPA) operations, follows previous partial shutdowns at the site.
The Houston-based company, with a market capitalization of $9.3 billion and an EBITDA of $1.7 billion in the last twelve months, had previously mothballed its allyl chloride (AC) and epichlorohydrin (ECH) operations at the Pernis site. Despite hopes for a significant demand recovery or regulatory support, Westlake determined that the likelihood of the facility returning to profitability remained low. The closure is expected to impact approximately 230 employees and incur pre-tax costs of around EUR 190 million, with a significant portion allocated to environmental remediation and other shutdown expenses. Westlake plans to continue serving its European customers for LER and BPA from its Deer Park, Texas facility.
This decision reflects Westlake’s broader European optimization efforts, shifting from line-specific adjustments to a full facility shutdown. The company had delayed the final decision on its European epoxy operations, holding out for a more favorable market environment.
Financially, Westlake Chemical reported a decline in free cash flow, dropping to -$325 million in Q1 2025 from -$103 million in Q1 2024. Year-end 2024 figures also saw a significant decrease in free cash flow to $306 million from $1.3 billion in 2023. Despite these headwinds, Westlake has initiated cost reductions, achieving approximately $40 million in savings in Q1 2025 and raising its 2025 cost savings target to $150-$175 million. The company has also reduced its 2025 capital spending forecast by 10% to $900 million.
Westlake is a global industrial company that manufactures and supplies essential products for everyday life. Operating under a "One Westlake" brand, their products are used in various sectors including housing and infrastructure, packaging and healthcare, and automotive and consumer goods. These materials are found in diverse items such as food packaging, medical devices, car interiors, and building materials like siding and pipes.
Westlake combines its chemical manufacturing expertise with a strong downstream building products business to create these vital materials. Examples include polyethylene for food packaging and PVC pipe for water delivery. The company employs approximately 16,000 people and has operations across North America, Europe, and Asia, emphasizing its commitment to a sustainable future.
