MOSCOW (MRC) -- Westlake Chemical has started up expanded PVC capacities in Louisiana and Germany, reported NCT with reference to the company's statement during an earnings call.
CEO Albert Chao stated that expansion will add 750 million pounds of PVC (340,194 tons/year) production to its Burghausen and Gendorf sites in Germany, as well as its Geismar site in Louisiana, the US.
Westlake also announced that it has increased its stakes in the LACC ethylene joint venture with Lotte Chemical in October 2019 to 46.8% from the previous 35%.
As MRC wrote earlier, Westlake Chemical Corporation saw lower profits in the fourth quarter of 2019, hurt by reduced global sales prices for its major products. The chemical maker posted a profit of USD72 million down around 41% from USD123 million it earned in the prior-year quarter. The Vinyls segment generated sales of USD1.5 billion, down around 1% year over year. Operating income in the segment was USD68 million, down around 46% year over year. The decline was caused by reduced sales prices for caustic soda and PVC resin. Revenues for full-year 2019 were USD8.12 billion, down around 6% year over year.
According to MRC's ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Russia's overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year. January production of unmixed PVC was 91,700 tonnes versus 87,760 tonnes in January 2019 and 81,400 tonnes in December 2019. Thus, despite relatively weak demand for resin from the domestic market, the average capacity utilisation exceeded 95% last month. Russia's overall PVC production reached 975,000 tonnes in 2019, compared to 958,600 tonnes a year earlier.
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, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
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