Westlake shuts down PVC pipe production plant at Springfield

Westlake shuts down PVC pipe production plant at Springfield

5:09 PM, 8th July 2011
Westlake shuts down PVC pipe production plant at Springfield
Westlake headquarters in US.

HOUSTON, US: Westlake Chemical Corporation’s, 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, 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. The company estimates the lost production, repair costs and other expenses resulting from this event will lower second quarter 2011 pre-tax earnings by approximately $ 10 million. It is expected that proceeds from insurance recoveries to offset a majority of this impact in future periods. The unit has returned to normal operations.

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