Profile: Westlake Chemical Corp (WLK.N)
26 May 2017
Westlake Chemical Corporation, incorporated on September 3, 1991, is a global manufacturer and marketer of basic chemicals, vinyls, polymers and building products. The Company's products include a range of chemicals, which are fundamental to various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, water treatment, refrigerants, residential and commercial construction, as well as other durable and non-durable goods. The Company operates in two segments: Olefins and Vinyls. The Company is also an integrated producer of vinyls with substantial downstream integration into polyvinyl chloride (PVC) building products.
Olefins are the basic building blocks used to create a range of petrochemical products. The Company manufactures ethylene (through Westlake Chemical OpCo LP (OpCo)), polyethylene, styrene and associated co-products at its manufacturing facility in Lake Charles and polyethylene at its Longview facility. As of December 31, 2016, the Company had two ethylene plants, two polyethylene plants and one styrene monomer plant at its olefins facility at its Lake Charles site. As of December 31, 2016, the Company had three polyethylene plants and a specialty polyethylene wax plant at its Longview site. As of December 31, 2016, OpCo had the capacity to produce three billion pounds of ethylene per year at the Company's Lake Charles site. Styrene is used to produce derivatives, such as polystyrene, acrylonitrile butadiene styrene, unsaturated polyester and synthetic rubber. These derivatives are used in various applications, including consumer disposables, food packaging, housewares, paints and coatings, building materials, tires and toys. It produces styrene at its Lake Charles plant. As of December 31, 2016, the Company had the capacity to produce 570 million pounds of styrene per year.
The Company produces low-density polyethylene (LDPE) and linear low-density polyethylene (LLDPE) at both Lake Charles and Longview. Its Lake Charles and Longview facilities also have the capability to produce high-density polyethylene (HDPE). It sells polyethylene to external customers as a final product in pellet form. The Company, through OpCo, also produces ethylene co-products, including chemical grade propylene, crude butadiene, pyrolysis gasoline and hydrogen.
The Company competes with Chevron Phillips Chemical Company, The Dow Chemical Company, ExxonMobil Chemical Company, INEOS Group Limited, LyondellBasell Industries, N.V. and NOVA Chemicals Corporation.
The Company's principal products in its integrated Vinyls segment include PVC, vinyl chloride monomer (VCM), ethylene dichloride (EDC), chlor-alkali (chlorine and caustic soda) and chlorinated derivative products and, through OpCo, ethylene. The Company also manufactures and sells building products fabricated from PVC, including siding, pipe, fittings, profiles, trim, moldings, fence and decking products, window and door components and film and sheet products. It manages its integrated Vinyls production chain from the basic chemicals to finished building products. Its primary North American chemical manufacturing facilities are located in its Calvert City, Kentucky and Lake Charles, Plaquemine and Geismar, Louisiana sites. As of February 15, 2017, the Company owned 26 building product facilities.
The Company's chlorinated derivative products include ethyl chloride, perchloroethylene, trichloroethylene, tri-ethane solvents, VersaTRANS solvents, calcium hypochlorite and hydrochloric acid (HCL). As of December 31, 2016, it had the capacity to produce 2.3 billion pounds of chlorinated derivative products per year, primarily at its Lake Charles, Natrium, Beauharnois and Longview facilities. Flexible PVC compounds are used for wire and cable insulation, medical films and packaging, flooring, wall coverings, automotive interior and exterior trims and packaging. Rigid extrusion PVC compounds are used in window and door profiles, vertical blinds and construction products, including pipe and siding. Injection-molding PVC compounds are used in specialty products, such as computer housings and keyboards, appliance parts and bottles. As of December 31, 2016, it had the capacity to produce 5.7 billion pounds and 1.1 billion pounds of commodity and specialty PVC per year, respectively, at its various facilities across the globe. The Company uses ethylene and chlorine to produce VCM. VCM is used internally in its PVC operations. As of December 31, 2016, it had the capacity to produce 5.5 billion pounds and 1.5 billion pounds of VCM per year at its North American and European facilities, respectively. The Company uses its chlorine production in its VCM and chlorinated derivative products plants. Its caustic soda is used in the production of pulp and paper, organic and inorganic chemicals and alumina.
The Company's products made from PVC are used in construction materials ranging from water and sewer systems to home and commercial applications for siding, trim, moldings, fence, deck, window and door systems. Its building products consist of two primary product groups: exterior products, including siding, trim, moldings, window profiles, fence and decking products, and PVC pipe, specialty PVC pipe and fittings. It manufactures and markets exterior products under the Royal Building Products, Celect Cellular Exteriors by Royal, Zuri Premium Decking by Royal, Royal S4S Trim Board and Exterior Portfolio brand names. It manufactures and markets pipe and fittings, water, sewer, irrigation and conduit pipe products under the North American Pipe and Royal Building Products brand names. It manufactures film and sheet at its Shanghai facility for both Asian and global markets. As of December 31, 2016, the combined capacity of its 26 building products plants was 2 billion pounds per year.
The Company competes with Formosa Plastics Corporation, Oxy Chem, LP, Shintech, Inc., Olin Corporation, Mexichem, S.A.B. de C.V., INOVYN ChlorVinyls Limited, VYNOVA Group, Kem One Group SAS, Diamond Plastics Corporation, JM Eagle, Ply Gem Holdings, Inc., CertainTeed Corporation, IPEX Inc., Associated Materials LLC and CPG International, LLC.
Westlake Chemical Corp
2801 Post Oak Blvd Ste 600
HOUSTON TX 77056-6110