Westlake gives green light to new plant


Westlake Chemical Corporation announced today it is proceeding with the delayed construction of a new chlor-alkali plant to be located at its vinyls manufacturing complex in Geismar, Louisiana. The new unit is expected to double the company’s production from250,000 electrochemical units (ECUs) annually, to 520,000 ECUs.

Westlake, headquartered in Houston, Texas, manufactures and supplies petrochemicals, polymers and fabricated products including ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC and PVC pipe, windows and fence.

The company said in a statement that the new plant is consistent with Westlake's vertical integration strategy for its vinyls business and will allow it to achieve chlorine integration.Plans for the project were first announced two years ago, but work was put on hold due to economic conditions.

Demand has since picked up, however, and Westlake reported earlier this month that its second-quarter profit had more than tripled.

The cost of the new chlor-alkali facility is estimated to range between $250 million and $300 million. It is targeted for start-up in the second half of 2013 and will be partially funded by the company’s Gulf Opportunity Zone bonds.

The plant will utilize state of the art membrane technology and is expected to create approximately 100 permanent positions and 400 to 500 construction jobs. The new unit will be adjacent to the existing vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) facilities at the Geismar complex.