Westlake Corporation
06/17/2025 | Press release | Distributed by Public on 06/17/2025 04:01
Reorganization (Form 8-K)
Item 2.05. Costs Associated with Exit or Disposal Activities
As previously disclosed, in July 2024, Westlake Corporation (the "Company") approved a plan to mothball the allyl chloride ("AC") and epichlorohydrin ("ECH") units at the Company's site in Pernis, the Netherlands. The Company has continued to operate the liquid epoxy resin ("LER") and bisphenol A ("BPA") units at the Pernis facility.
In light of the continued deterioration of the Company's business in Europe, on June 13, 2025, the Company initiated consultations with local works councils regarding the anticipated cessation of operations of the entire Pernis facility (including the AC, ECH, LER and BPA units) in 2025. In connection therewith, the Company plans to continue supplying customers from its LER and BPA production capacity at its Deer Park, Texas facility.
On June 17, 2025, the Company notified the affected employees at the Pernis facility of the Company's plan. The anticipated closure of the entire Pernis facility would take place after the conclusion of the consultations with local works councils and unions. In addition to the previous charges related to the July 2024 mothballing, the Company expects it would incur total pre-tax costs of approximately EUR 190 million related to the closure of the Pernis facility. A closure of the facility is expected to result in an additional workforce reduction of approximately 230 employees. The expected costs related to closing the entire facility would consist of employee severance and separation costs of approximately EUR 30 million and charges for environmental remediation and other plant shut down costs of approximately EUR 160 million.
The Company expects to recognize a charge for substantially all of these costs during the second quarter of 2025, although cash outflows are expected over several years after the anticipated closure is complete.
Given that the Company is in the early stages of the process, the amount and timing of some of these expected costs are uncertain. The Company will amend this Current Report on Form 8-K or disclose in another periodic filing with the Securities and Exchange Commission ("SEC"), if appropriate, the amount of any material impairment charges or costs, once they are determinable.
Westlake Corporation published this content on June 17, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on June 17, 2025 at 10:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at support@pubt.io