Westlake to restart Kentucky petrochemical complex after a 50 day shutdown due to mechanical failure

19-Jul-16

Houston-based Westlake Chemical is restarting its petrochemical complex in Kentucky after a mechanical failure caused a shutdown almost 50 days ago. The Calvert City plant has been offline since June 1.

Westlake said Monday it will report a US$40 million loss for the period. Westlake said the shutdown will negatively affect Q2 and Q3 earnings. Westlake said it will report the financial loss through a force majeure declaration, which is considered an unforeseeable circumstance. Westlake's financial hit from Kentucky comes when it was in the midst of acquiring its rival, Atlanta-based Axiall Corp., in a US$2.3 bln cash deal, or US$3.8 bln including the acquisition of debt.