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Released November 07, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite a sharp drop in profits, Westlake Chemical Corporation (NYSE: WLK) (Houston, Texas) this week reported its capital expenditures were $193 million for third-quarter 2019, as it focused on debottlenecking investments to further integrate its vinyls businesses in the U.S. and Germany. Industrial Info is tracking more than $1 billion worth of Westlake Chemical project activity in North America, with the lion's share of that amount in Louisiana.
Click on the image at right for a graph showing Westlake's North American project activity by state and province.
Westlake Chemical reported $158 million in net income for the just-ended quarter, roughly half of what it reported for third-quarter 2018. The company attributed the plunge to lower global sales prices as international trade uncertainties and a slowing global economy took their toll on the market.
"We are experiencing slower global economic growth in 2019, which has been impacted by international trade tensions, resulting in a difficult pricing environment," said Westlake Chief Executive Officer Albert Chao in the company's Tuesday earnings press release. "In this challenging environment we are focused on cost control and we are investing in a number of initiatives around the world which are expected to drive long-term value for our shareholders."
The company plans to start up vinyl chloride monomer (VCM) and polyvinyl vinyl chloride (PVC) expansions in Louisiana and Germany by the end of the year, which will bring more than 750 million pounds of PVC production per year, said Chief Financial Officer Steve Bender during the company's earnings conference call. At its vinyls complex in Geismar, Louisiana, construction was completed during the third quarter on a $130 million PVC expansion project, which increases annual PVC capacity at the site by 600 million pounds, and VCM capacity by 150 million pounds. For more information, see industrial Info's project report.
Westlake is evaluating the potential for a future VCM expansion of an unspecified amount at Geismar. Kickoff is planned for early 2023. For more information, see Industrial Info's project report.
Also, Westlake announced in late October that a subsidiary purchased at least an additional 34.78% of the interest in the LACC ethylene plant near Lake Charles, Louisiana, for $816.5 million, from joint venture partner Lotte Chemical (Seoul, South Korea). The bigger share of the ethylene joint venture "will further integrate our vinyls chain and lower our cost," Bender said.
The ethylene plant and an adjacent Lotte Chemical ethylene glycol plant opened in May this year. For more information about the 1 million-metric-ton-per-year ethylene cracker, see Industrial Info's project report.
Construction continues on Westlake's PVC and VCM expansion project at its Plaquemine, Louisiana, facility. The expansion will increase PVC resins capacity by 150 million pounds to 250 million pounds per year, and increase VCM capacity by 100 million pounds to 200 million pounds. Construction kicked off in mid-July, and completion is planned for fourth-quarter 2020. For more information, see Industrial Info's project report.
At its Calvert City PVC facility in Kentucky, Westlake is performing market analysis for a potential PVC resins unit addition, with a project kickoff contemplated in third-quarter 2020. For more information, see Industrial Info's project report.
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.
Westlake Chemical reported $158 million in net income for the just-ended quarter, roughly half of what it reported for third-quarter 2018. The company attributed the plunge to lower global sales prices as international trade uncertainties and a slowing global economy took their toll on the market.
"We are experiencing slower global economic growth in 2019, which has been impacted by international trade tensions, resulting in a difficult pricing environment," said Westlake Chief Executive Officer Albert Chao in the company's Tuesday earnings press release. "In this challenging environment we are focused on cost control and we are investing in a number of initiatives around the world which are expected to drive long-term value for our shareholders."
The company plans to start up vinyl chloride monomer (VCM) and polyvinyl vinyl chloride (PVC) expansions in Louisiana and Germany by the end of the year, which will bring more than 750 million pounds of PVC production per year, said Chief Financial Officer Steve Bender during the company's earnings conference call. At its vinyls complex in Geismar, Louisiana, construction was completed during the third quarter on a $130 million PVC expansion project, which increases annual PVC capacity at the site by 600 million pounds, and VCM capacity by 150 million pounds. For more information, see industrial Info's project report.
Westlake is evaluating the potential for a future VCM expansion of an unspecified amount at Geismar. Kickoff is planned for early 2023. For more information, see Industrial Info's project report.
Also, Westlake announced in late October that a subsidiary purchased at least an additional 34.78% of the interest in the LACC ethylene plant near Lake Charles, Louisiana, for $816.5 million, from joint venture partner Lotte Chemical (Seoul, South Korea). The bigger share of the ethylene joint venture "will further integrate our vinyls chain and lower our cost," Bender said.
The ethylene plant and an adjacent Lotte Chemical ethylene glycol plant opened in May this year. For more information about the 1 million-metric-ton-per-year ethylene cracker, see Industrial Info's project report.
Construction continues on Westlake's PVC and VCM expansion project at its Plaquemine, Louisiana, facility. The expansion will increase PVC resins capacity by 150 million pounds to 250 million pounds per year, and increase VCM capacity by 100 million pounds to 200 million pounds. Construction kicked off in mid-July, and completion is planned for fourth-quarter 2020. For more information, see Industrial Info's project report.
At its Calvert City PVC facility in Kentucky, Westlake is performing market analysis for a potential PVC resins unit addition, with a project kickoff contemplated in third-quarter 2020. For more information, see Industrial Info's project report.
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.
