Unscheduled shutdown of Petro II Ethylene Unit by Westlake Chemical

12-Sep-06

Westlake Chemical Corporation has announced an unscheduled shutdown of the Petro II ethylene unit in Lake Charles, Louisiana, as the unit has encountered mechanical problems with a compressor and related equipment. The shutdown could continue until early October 2006. Concurrent with the shutdown, the company expects to substantially complete a turnaround of the unit that was scheduled for late this year or early next year. During the unit's down time, Westlake also plans to complete portions of its previously announced Feed-Flex project which will reduce energy costs and provide for additional ethylene capacity. The capitalized cost of the turnaround work is estimated to be $20 million. Current estimates peg effect on operating income of the shutdown could range between US$20-25 mln from lost production and maintenance repair costs.