Weak demand due to inventory destocking by customers compels Westlake to idle an ethylene plant in Lake Charles

18-Dec-08

Westlake Chemical Corp. plans to idle an ethylene plants in Lake Charles, La., due to significant customer inventory destocking and the resulting weaker demand. The plant will be idled until demand recovers, and currently no jobs are affected. Westlake has been operating its plants at reduced rates since Q3 to cope with deteriorating demand due to the global economic meltdown along with simultaneous sharp product price declines due to the recent collapse in energy and feedstock prices. The company has warned that results for Q4 as well as the FY08 will be hurt by lower production, falling demand and inventory write downs due to sharp drops in product prices. The said the Lake Charles plant will be idled until demand recovers, and currently no jobs are affected.