Westlake Chemical Corporation Discloses Recent Operating Developments
HOUSTON, June 23, 2011 /PRNewswire/ — Westlake Chemical Corporation (NYSE: WLK) announced today that its North American Pipe Corporation subsidiary has shut down its Springfield, KY PVC pipe production facility in an effort to reduce costs and optimize production operations as a result of excess capacity in the PVC pipe market. The Springfield site is one of the company’s smallest pipe facilities. Customers currently being serviced from Springfield will not experience any supply disruption and will now be served through North American Pipe’s other PVC pipe plants. Impairment and shutdown-related costs are expected to negatively impact second quarter 2011 pre-tax earnings by approximately $4 million.
During the second quarter of 2011 our Lake Charles, Louisiana facility has also been negatively impacted by an unscheduled outage caused by a weather related power supply failure from a third party power provider, resulting in reduced production and repairs at an ethylene unit. We estimate that the lost production, repair costs and other expenses resulting from this event will lower second quarter 2011 pre-tax earnings by approximately $10 million. We expect proceeds from insurance recoveries to offset a majority of this impact in future periods. The unit has returned to normal operations.
Westlake Chemical Corporation (WLK)
Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company’s range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVC building products including pipe, windows and fence. For more information, visit the company’s Web site at www.westlake.com.
SOURCE Westlake Chemical Corporation