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Released August 13, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--For the rest of 2018, Westlake Chemical Corporation (NYSE:WLK) (Houston, Texas) will focus on the construction of a Louisiana ethylene unit addition and acquiring long-lead equipment for the expansion of a vinyls complex, also in Louisiana, company executives said recently. Industrial Info is tracking nearly $731 million in Westlake project activity.
Located in Lake Charles, the ethylene unit, a joint venture with South Korea's Lotte Chemical, has a planned startup in the first half of 2019, Westlake Chief Executive Officer Albert Chao noted during the company's second-quarter earnings results conference call on August 2. Construction on the 1 million-metric-ton-per-year facility began in mid-2016. McDermott International Incorporated (NYSE:MDR) (Houston, Texas) is the engineering, procurement and construction (EPC) provider for the project. For more information, see Industrial Info's project report and August 8, 2018, article - McDermott's $130 Billion in Projects Point to Further Growth After CB&I Pickup.
Westlake is open to the idea of future expansions or debottlenecks at the ethylene facility and elsewhere if warranted by market conditions, Chief Financial Officer Mark Bender told investment analysts during the earnings call. "We'll assess the markets with our partner as we march forward to see if that makes sense and what those capital costs might be if we choose to run either at higher rates or do as some others that do a quick expansion or debottlenecking," he said.
Westlake is expected to invest between $600 million and $650 million on capital expenditures in 2018, including growth projects and maintenance spending, company executives said. The company is the second-largest producer of PVC in North America and the third-largest globally. It is also the third-largest chlor alkali producer in North America.
The company is acquiring long-lead equipment for vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) expansions at its Geismar complex in Louisiana. The expansions, due to kick off construction in December, will increase PVC capacity by 270 million pounds per year and VCM capacity by 150 million pounds. See Industrial Info's report on the PVC and VCM expansions and an accompanying VCM railcar unloading system expansion.
Westlake continues to evaluate potential PVC and VCM expansions at its Plaquemine facility in Louisiana. Options include the installation of a new unit or expanding the existing production units starting in late 2019 to increase PVC capacity by 150 million to 250 million pounds per year, and VCM capacity by 100 million to 200 million pounds per year. For more information, see Industrial Info's project report.
Westlake reported net income of $278 million for the second quarter, a $125 million increase from the same quarter a year earlier. It attributed the jump to higher sales prices, lower U.S. taxes and higher sales volumes for caustic soda, PVC resin and polyethylene.
The company's Olefins segment reported $158 million in income from operations, up $15 million from second-quarter 2018. The Vinyls segment reported $271 million for the just-ended quarter, up $130 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Located in Lake Charles, the ethylene unit, a joint venture with South Korea's Lotte Chemical, has a planned startup in the first half of 2019, Westlake Chief Executive Officer Albert Chao noted during the company's second-quarter earnings results conference call on August 2. Construction on the 1 million-metric-ton-per-year facility began in mid-2016. McDermott International Incorporated (NYSE:MDR) (Houston, Texas) is the engineering, procurement and construction (EPC) provider for the project. For more information, see Industrial Info's project report and August 8, 2018, article - McDermott's $130 Billion in Projects Point to Further Growth After CB&I Pickup.
Westlake is open to the idea of future expansions or debottlenecks at the ethylene facility and elsewhere if warranted by market conditions, Chief Financial Officer Mark Bender told investment analysts during the earnings call. "We'll assess the markets with our partner as we march forward to see if that makes sense and what those capital costs might be if we choose to run either at higher rates or do as some others that do a quick expansion or debottlenecking," he said.
Westlake is expected to invest between $600 million and $650 million on capital expenditures in 2018, including growth projects and maintenance spending, company executives said. The company is the second-largest producer of PVC in North America and the third-largest globally. It is also the third-largest chlor alkali producer in North America.
The company is acquiring long-lead equipment for vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) expansions at its Geismar complex in Louisiana. The expansions, due to kick off construction in December, will increase PVC capacity by 270 million pounds per year and VCM capacity by 150 million pounds. See Industrial Info's report on the PVC and VCM expansions and an accompanying VCM railcar unloading system expansion.
Westlake continues to evaluate potential PVC and VCM expansions at its Plaquemine facility in Louisiana. Options include the installation of a new unit or expanding the existing production units starting in late 2019 to increase PVC capacity by 150 million to 250 million pounds per year, and VCM capacity by 100 million to 200 million pounds per year. For more information, see Industrial Info's project report.
Westlake reported net income of $278 million for the second quarter, a $125 million increase from the same quarter a year earlier. It attributed the jump to higher sales prices, lower U.S. taxes and higher sales volumes for caustic soda, PVC resin and polyethylene.
The company's Olefins segment reported $158 million in income from operations, up $15 million from second-quarter 2018. The Vinyls segment reported $271 million for the just-ended quarter, up $130 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
