Skip to main content

News & Events

 

 

 

 

 

 

 

 

 

 

 

 

 

 

News and Events

 

 

Leading global supplier of coatings and composites used in wind turbine blades and automotive structural components to expand Westlake’s chemicals portfolio

HOUSTON--(BUSINESS WIRE)-- Westlake Chemical Corporation (NYSE: WLK), today announced that it has entered into a definitive agreement with Hexion Inc. to acquire Hexion’s global epoxy business for approximately $1.2 billion. Based in Rotterdam, The Netherlands, Hexion’s epoxy business is an industry leader in the manufacture and development of specialty resins, coatings and composites for a variety of industries, including high-growth and sustainability-oriented end-uses such as wind turbine blades and light-weight automotive structural components. In the twelve months ended September 30, 2021, Hexion’s epoxy business had net sales of approximately $1.5 billion.

With this transaction, which is anticipated to be completed in the first half of 2022 following customary closing conditions, Westlake will significantly expand its integrated business by adding a downstream portfolio of coatings and composite products to its leading chloro-vinyls businesses.

“Light-weighting is a critical feature for the manufacture of structural components for automobiles and for renewable energy, particularly the composite blades used by wind turbines, and epoxies are key ingredients for these sustainable products,” said Westlake President and Chief Executive Officer Albert Chao. “The industries served by Hexion Epoxy are very attractive to Westlake and the business is expected to be a synergistic addition to Westlake’s existing businesses. We look forward to welcoming the Hexion epoxy employees to the Westlake family and realizing the tremendous opportunities to grow the combined businesses.”

Hexion Epoxy is a global leading producer of epoxy resins, modifiers and curing agents for high-performance materials, coatings and composites. The fully-integrated business includes upstream base epoxy resins and intermediates delivered as liquid or solid epoxy resins, as well downstream specialty epoxy resins used in coatings and composites. Hexion Epoxy operates globally on three continents with eight manufacturing facilities and five research and development labs located in Asia, Europe and the United States, as well as tolling sites in Asia.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, we provide the building blocks for vital solutions — from building products and infrastructure materials, to packaging and healthcare products, to automotive and consumer goods. For more information, visit the company's web site at www.westlake.com.

Forward-Looking Statements

The statements in this release that are not historical statements, including statements regarding the expected timing of closing, whether required regulatory approval will be obtained, and potential benefits of the transaction are forward-looking statements within the meaning of the U.S. securities laws. These forward-looking statements are subject to significant risks and uncertainties, many of which are beyond Westlake’s control. Actual results could differ materially, based on factors including, but not limited to: the timing to consummate the proposed transaction; the conditions to closing of the proposed transaction may not be satisfied or the closing of the proposed transaction otherwise may not occur; the risk that regulatory approval is not obtained or is obtained subject to conditions that are not anticipated; the diversion of management time on transaction-related issues; and other risks and uncertainties described in Westlake’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the Securities and Exchange Commission (“SEC”) in February 2021, Westlake’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, which was filed with the SEC in November 2021, Westlake’s recent Current Reports on Form 8-K, and Westlake’s other SEC filings. These filings also discuss some of the important risk factors that may affect Westlake’s business, results of operations and financial condition. Westlake undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Media Relations – L. Benjamin Ederington – 1-713-585-2900
Investor Relations – Steve Bender – 1-713-585-2900

Source: Westlake Chemical Corporation

 

Company expands its building products business with a leading recycled plastic materials processor

Acquisition supports Westlake’s growth trajectory and meeting its ESG commitments

HOUSTON--(BUSINESS WIRE)-- Westlake Chemical Corporation (NYSE: WLK) today announced that it has completed the acquisition of Dimex LLC, from Grey Mountain Partners, a private equity firm.

Video about DIMEX

“The acquisition of Dimex underscores our longstanding commitment to stewardship of the environment and recycling, and to taking actions that contribute to a sustainable, circular economy,” said Robert Buesinger, Executive Vice President, Vinyl Products of Westlake Chemical Corporation. “We are at an important societal inflection point where consumers prefer and are willing to pay for products made with recyclable materials. Dimex produces a variety of consumer products made from post-industrial-recycled polyvinyl chloride, polyethylene and thermoplastic elastomer materials, which will make this transaction an important piece of Westlake’s growth trajectory and ESG commitment for a long time.”

According to a recent survey of 2,000 U.S. consumers reported by Plastics Today, 59% of respondents appreciate buying items made with recycled materials and are willing to pay more for such products. Recycling reduces landfill waste and saves energy from plastics production.

Buesinger continued, “Dimex has over 30 years of experience and is one of the largest processors of recycled plastic materials in the United States. Dimex also supplies recycled flexible PVC and TPE compounds to other environmentally conscious manufacturers. Because Dimex uses its compounds in its own products, the company is uniquely positioned to understand its customers’ needs and to provide the engineering, manufacturing, and distribution capabilities to meet those needs quickly and effectively.”

Based in Marietta, Ohio, Dimex produces a range of consumer and building products, including landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls. Following its acquisition by Grey Mountain Partners in 2013, the company expanded its product development resources, which resulted in the introductions of No-Dig Landscape Edging®, MotionTex® Fitness Equipment Mats, and GrillTex® Under the Grill Protective Deck and Patio Mats. Over the last four years, Dimex has secured 29 U.S. patents for its products.

“With the acquisition of Dimex, we are significantly adding to our growing portfolio of environmentally friendlier products,” said Albert Chao, President and Chief Executive Officer of Westlake. “Westlake is continually improving how it incorporates recyclable plastic materials into products to serve our customers’ demands for innovative engineering and consumer interest in environmentally responsible goods. Our commitment to Environmental, Sustainability and Governance (ESG) objectives is focused on our mission of providing essential products and critical innovations for materials used in building and construction, consumer lifestyles and nutrition and healthcare.”

Westlake’s sustainable products portfolio includes GreenVin™, a caustic soda produced with renewable energy by the Company’s Vinnolit subsidiary, and Aspire Vinyl®, the first phthalate-free, bio-based compounds with more than 35% renewable content. Westlake is also actively pursuing a one-pellet solution to incorporate post-consumer resin (PCR) while maintaining the strength of plastic materials and, separately, is participating in the EU Circular Flooring Project to enable post-consumer PVC flooring recycling.

In addition to providing products manufactured with post-industrial recycled materials, Dimex is engaged in research and development to advance additional opportunities to increase the use of recycled materials. The acquisition expands Westlake’s role in improving how plastic materials are sourced and produced to meet the growing demand for sustainable and durable consumer products.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, we provide the building blocks for vital solutions — from building products and infrastructure materials, to packaging and healthcare products, to automotive and consumer goods. For more information, visit the company's web site at www.westlake.com.

Chip Swearngan
MediaRelations@Westlake.com
1-713-585-2900

Source: Westlake Chemical Corporation


Company Rolls Out Second Lower-Carbon Product in 2021 Following its Introduction of Lower-Carbon Caustic Soda in February 2021.

Westlake Chemical Corporation (NYSE: WLK) announced its Vinnolit subsidiary in Germany launched GreenVin™ Polyvinyl Chloride (PVC), a lower-carbon alternative PVC, which is one of the most widely utilized plastics in the construction, automotive and medical sectors.

"Market demand for lower-carbon plastics and materials is rising rapidly as more customers are seeking ways to reduce their carbon footprints and meet their sustainability goals,” said Vice President, Europe & Asia Vinyls Chemicals, Dr. Karl-Martin Schellerer. “GreenVin™ PVC performs as well as traditional PVC while offering a more climate-friendly product that our customers can feel good about using. This product and the entire GreenVin™ product line are part of our overall commitment to meeting society’s needs and enabling a better future.”

The introduction of GreenVin™ PVC follows the market launch of GreenVin™ caustic soda earlier this year, with the product line expected to extend into the Company's vinyl chloride and hydrogen products in the future. Caustic soda is an essential ingredient for the production of many materials, including detergents, construction materials, pulp and paper, pharmaceuticals and water treatment products.

The Vinnolit GreenVin™ brand is based on European high-quality renewable energy certificates (Guarantees of Origin) associated with the production of the lower-carbon PVC and caustic soda. Depending on the PVC type, the carbon-dioxide savings with GreenVin™ PVC are about 25% compared to conventionally produced Vinnolit PVC. The respective carbon footprint for the entire product portfolio was calculated by Sustainable AG in accordance with the ISO 14067 standard. Review and certification are carried out by TÜV Rheinland.

Westlake recently released its 2020 ESG Report, Essential Products, Critical Innovations, which provides details on its ESG goals and achievements for its operations, safety, products and people, and includes information on lower-carbon product development and more sustainable manufacturing. Procuring green power – in addition to the continuous improvement of the energy efficiency of the production processes – is a step toward achieving CO2-neutral PVC supply. These efforts also support the energy transition and the European Green Deal. In addition, Vinnolit is working with partners to also offer bio-attributed PVC, based on bio-ethylene.

"With GreenVin™, we are working to make the entire Vinnolit product portfolio, including PVC, more environmentally friendly and sustainable," Schellerer added. "At Westlake and Vinnolit, we are proud to be doing our part for a stronger industry and sustainable future.”

 

New PVC Pipe Features Higher Performance and a Lower Carbon Footprint Than Past Products

HOUSTON--(BUSINESS WIRE)-- North American Pipe Corporation (NAPCO), a subsidiary of Westlake Chemical Corporation (NYSE: WLK), today announced the launch of a new product, molecular oriented PVC (PVCO) pipe. The new PVCO pipe features a lower manufacturing carbon footprint than other water main materials. This investment in state-of-the-art technology expands NAPCO’s production capacity at the company’s Woodbridge, Ontario, pipe and fittings facility.

“Our focus is on delivering pipe and fitting systems that address our customers’ most difficult infrastructure challenges, including product longevity, ease of installation and enhancing water flow,” said Andre Battistin, vice president, NAPCO Pipe & Fittings. “With sustainability and innovation firmly anchored in our corporate culture, we are actively bringing new products to market with lower environmental impacts throughout the life cycle assessment. The new PVCO product line reinforces our commitment by employing new manufacturing technologies that improve environmental footprints while enabling high performing PVC pipe and fittings for our customers.”

During the manufacturing process, the polyvinyl chloride (PVC) molecules are stretched and reorganized to increase material strength. This orientation realigns the molecules in line with the extrusion process to produce PVC pipe that withstands greater stresses from internal pressure, has better impact performance and increased flow capacity and weighs less than comparable C900 products.

Independent studies show PVCO materials have lower embodied energy, or the aggregate of energy expended to manufacture and transport materials, compared to other commonly used pipe options, further improving the environmental profile.

NAPCO’s PVCO pipe is produced with top-quality raw materials and modern processing technology. The pipe meets all AWWA C909 requirements and is certified by third-party listing agencies. In addition, all production undergoes NAPCO’s own rigorous quality control requirements. NAPCO’s AWWA C909 PVCO pipe offering is compatible with NAPCO’s C900 pipe and C907 fittings and accessories, and is manufactured to meet the needs of modern underground municipal potable water, wastewater and reclaimed water systems. PVCO is now available in sizes ranging from 6 inches (150 mm) to 12 inches (300 mm) and NAPCO is currently building inventory in anticipation of spring construction in Canada.

Westlake recently published its 2020 Environmental, Sustainability, and Governance Report, Essential Products, Critical Innovations that features the Company’s activities that have helped drive operational and supply chain process improvements, the betterment of local communities and new, more sustainable products.

About NAPCO Pipe & Fittings

NAPCO, a Westlake company, is a leading North American polyvinyl chloride (PVC) pipe manufacturer. Founded in 1992, NAPCO supplies a broad range of gasketed, solvent welded, and restrained joint pipes for a diverse range of markets, including municipal water and sewer, residential plumbing, water well, and agricultural and turf irrigation. The company has a seasoned R&D team driving product enhancements that deliver innovative solutions that meet customers’ most challenging needs. NAPCO offers a large selection of PVC piping and fittings, including brands such as Certa-Lok®, Yelomine®, Certa-Set® and Certa-Flo®. For more information visit www.napcopipe.com.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, we provide the building blocks for vital solutions — from building products and infrastructure materials, to packaging and healthcare products, to automotive and consumer goods. For more information, visit the company's web site at www.westlake.com.

Chip Swearngan
MediaRelations@Westlake.com
1-713-585-2900

Source: Westlake Chemical Corporation

  • Record quarterly net sales of $3.1 billion
  • Record quarterly net income of $607 million
  • Record quarterly EBITDA of $1.1 billion
  • Completed acquisitions of Boral’s North American building products businesses, Dimex LLC and LASCO Fittings, Inc.

HOUSTON--(BUSINESS WIRE)-- Westlake Chemical Corporation (NYSE: WLK) (the "Company" or "Westlake") today reported record net income, excluding one-time tax benefits in a prior quarter, attributable to Westlake for the three months ended September 30, 2021 of $607 million, or $4.69 per diluted share, on record net sales of $3,055 million. Net income in the third quarter of 2021 increased by $550 million, or $4.24 per share, from third quarter 2020 net income of $57 million on net sales of $1,898 million despite the negative impacts of Hurricane Ida. Income from operations for the third quarter of 2021 was a quarterly record of $861 million, and increased by $782 million from income from operations of $79 million for the third quarter of 2020. The increases in net income and income from operations were driven by significantly higher sales prices and margins for most of our major products. PVC resin margins benefited from the continued strength of residential construction coupled with the solid repair and remodeling markets, also driving demand in our building products business. Additionally, the olefins business experienced robust strength from packaging and consumer markets resulting in higher prices and margins driven by the global economic expansion.

Third quarter 2021 net income of $607 million, or $4.69 per share, increased by $85 million from second quarter 2021 net income of $522 million. Income from operations of $861 million for the third quarter of 2021 increased by $141 million from income from operations of $720 million for the second quarter of 2021. The increases in net income and income from operations versus the prior quarter were primarily due to higher sales prices and higher margins for most of our major products, including caustic soda and building products.

For the first nine months of 2021, net income of $1,371 million, or $10.60 per share, increased by $1,154 million from the first nine months of 2020 net income of $217 million. Income from operations of $1,927 million for the first nine months of 2021 increased by $1,676 million from income from operations of $251 million for the first nine months of 2020, which was severely impacted by the global COVID-19 pandemic. The increases in net income and income from operations were primarily due to the global economic recovery, which has driven strong demand and significantly higher sales prices and margins for most of our major products and strong demand in our building products business.

On August 19, 2021, Westlake announced that it acquired LASCO Fittings, Inc. ("LASCO"), a leading manufacturer of injected-molded PVC fittings. The acquisition will add complementary products to NAPCO's existing portfolio of pipe and fittings products, with an emphasis on new products and new markets.

On September 10, 2021, Westlake announced the completion of the acquisition of Dimex LLC ("Dimex"). The acquisition adds a range of post-industrial recycled plastic consumer and building products, including landscape edging; industrial, home and office matting; marine dock edging; and masonry joint controls. Dimex is engaged in the development of additional opportunities to increase the use of recycled materials to meet the growing demand for sustainable and durable consumer products.

On October 1, 2021, Westlake announced the completion of the acquisition of Boral Limited's North American building products businesses ("Boral North America") in roofing; siding, trim and shutters; decorative stone; and windows. The acquisition positions Westlake at the forefront of the growing building products and construction markets, with durable and sustainable materials and creates opportunities for further product innovations.

"In the third quarter, we accomplished a number of milestones at Westlake. We achieved a consecutive quarter of record earnings as we continue to benefit from the global economic expansion that began early in the second half of 2020 with strong demand across our product offerings which enhance the lives of countless peoples, illustrating the earnings capabilities of our company," said Albert Chao, President and Chief Executive Officer. "As global supply chains and manufacturing recover to meet pent-up consumer demand across the spectrum of manufactured goods, Westlake is well positioned to continue to deliver strong results."

"Through the investments of approximately $2.6 billion we made in our recent acquisitions of Boral North America, Dimex and LASCO, we have created a platform for the next chapter of our growing building products business in North America," continued Mr. Chao. "These investments build our footprint in the sustainable building product markets, enhancing our position to drive greater value with new and complementary platforms and long-term growth opportunities for Westlake. We are excited to welcome the Boral, Dimex and LASCO employees to the Westlake family."

Net cash provided by operating activities was $755 million for the third quarter of 2021. As of September 30, 2021, cash and cash equivalents were $3,571 million and long-term debt was $5,197 million. Capital expenditures were $144 million for the third quarter of 2021.

Record EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $1,077 million for the third quarter of 2021 increased by $790 million compared to third quarter 2020 EBITDA of $287 million. Third quarter 2021 EBITDA increased by $145 million compared to second quarter 2021 EBITDA of $932 million. Record EBITDA of $2,562 million for the first nine months of 2021 was $1,702 million higher than EBITDA for the first nine months of 2020 of $860 million. A reconciliation of EBITDA to net income, income from operations, and net cash provided by operating activities can be found in the financial schedules at the end of this press release.

VINYLS SEGMENT

Record Vinyls income from operations for the third quarter of 2021 of $601 million increased by $559 million from third quarter 2020 income from operations of $42 million. This increase in income from operations versus the prior-year period was primarily due to significantly higher sales prices and margins as well as increased earnings in our building products business.

Record Vinyls income from operations for the third quarter of 2021 of $601 million increased by $166 million from second quarter 2021 income from operations of $435 million primarily due to higher sales prices and integrated margins for caustic soda and chlorine as well as increased earnings in our building products business.

For the first nine months of 2021, Vinyls income from operations of $1,236 million increased by $1,101 million from income from operations of $135 million for the first nine months of 2020. This increase in income from operations versus the prior-year period was primarily due to significantly higher sales prices and integrated margins for PVC resin as well as strong demand in our building products business. Income from operations for the first nine months of 2021 saw higher ethylene and energy costs as well as the impacts from Winter Storm Uri and Hurricane Ida, while income from operations for the first nine months of 2020 was negatively impacted by the onset of the COVID-19 pandemic and Hurricane Laura.

OLEFINS SEGMENT

Record Olefins income from operations for the third quarter of 2021 of $281 million increased by $230 million from third quarter 2020 income from operations of $51 million. This increase in income from operations versus the prior-year period was primarily due to significantly higher sales prices and margins for all of our products, driven by solid global demand.

Record Olefins income from operations of $281 million in the third quarter of 2021 increased by $4 million from second quarter 2021 income from operations of $277 million. This increase in income from operations versus the prior quarter was primarily due to higher sales prices and margins for polyethylene.

For the first nine months of 2021, Olefins income from operations of $738 million increased by $600 million from income from operations of $138 million for the first nine months of 2020. This increase in income from operations was primarily due to significantly higher sales prices and margins as well as 2020 impacts of Hurricane Laura, partially offset by lower polyethylene sales volumes resulting from Winter Storm Uri.

Forward-Looking Statements

The statements in this release and the related teleconference relating to matters that are not historical facts, including statements regarding our ability to deliver strong results, continued improvement of our performance in 2021, and demand for polyethylene, PVC and downstream building products, are forward-looking statements. These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: the COVID-19 pandemic and the response thereto; general economic and business conditions; the cyclical nature of the chemical industry; availability, cost and volatility of raw materials and utilities, including natural gas and natural gas liquids from shale production; the price of crude oil; uncertainties associated with the United States and worldwide economies, including those due to global economic and financial conditions; governmental regulatory actions, including environmental regulation and changes in trade policies; political unrest; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures; access to capital markets; technological developments; the effect and results of litigation and settlements of litigation; operating interruptions; the ability to integrate the recent acquisitions; the diversion of management time on transaction-related issues; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC in February 2021.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. For this purpose, a non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the registrant; or (2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of EBITDA to net income, income from operations and net cash provided by operating activities can be found in the financial schedules at the end of this press release.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, we provide the building blocks for vital solutions — from building products and infrastructure materials, to packaging and healthcare products, to automotive and consumer goods. For more information, visit the company's web site at www.westlake.com.

Westlake Chemical Corporation Conference Call Information:

A conference call to discuss Westlake Chemical Corporation's third quarter 2021 results will be held Tuesday, November 2, 2021 at 11:00 AM Eastern Time (10:00 AM Central Time). To access the conference call, dial (855) 760-8160 or (704) 288-0624 for international callers, approximately 10 minutes prior to the scheduled start time and reference passcode 249 55 84.

A replay of the conference call will be available beginning two hours after its conclusion until 11:59 p.m. Eastern Time on November 9, 2021. To hear a replay, dial (855) 859-2056 or (404) 537-3406 for international callers. The replay passcode is 249 55 84.

The conference call will also be available via webcast at https://edge.media-server.com/mmc/p/k7sddqsx and the earnings release can be obtained via the Company's web page at: http://www.westlake.com/investor-relations.

In efforts to build an engaging workplace, Westlake Compounds Viet Nam held a 5km marathon race for employees at Bien Hoa city square. The marathon race was one of their yearly employee engagement activities to help promote physical care, team spirit, and collaboration. This was a special event as it was their first outdoor event in 2022, and over 40 employ

 

Westlake Compounds Vietnam Outing Trip

From 08-09 June 2022


 It's great moments with many team building activities, employee recognitions...

We are the Winners!  


 Start from Westlake Vietnam Factory

 

 

Our approach to Sustainability

As a leading global producer of plastics, we understand the importance of reducing the environmental impacts of our feed-stocks, production and usage.

In the PVC compound industry, stabilizers are present in PVC compounds at a low dosage, but they are crucial ingredients to meet compound specifications and to process on the production stages.

Westlake Compounds Vietnam has been using Lead-free stabilizers (Ca/Zn based, Tin based…) for many different product ranges for years with stable quality.

We have been developing exciting innovations of phasing out all lead-based PVC compounds and switching to Ca/Zn ones. This achievement is not only to meet customer demand, but also to reduce environmental impacts.

We are please to announce that Westlake Compounds Viet Nam 100% phase out Lead-based PVC compounds from October 2022.