Westlake Chemical (WLK) to Expand Feedstock for Calvert City Plant
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Westlake Chemical Corporation (NYSE: WLK) announced today it is converting the feedstock for its Calvert City, Kentucky ethylene plant from propane to ethane along with increasing ethylene capacity from 450 million pounds per year to 630 million pounds per year. This expansion and feedstock conversion will enhance Westlake's vinyl chain integration and leverage low cost ethane being developed in the Marcellus shale area.
In addition, Westlake announced an expansion of the existing PVC plant in Calvert City, Kentucky that will add approximately 200 million pounds per year of capacity to the existing 1,100 million pounds of annual capacity. This expansion allows Westlake to take advantage of the increased ethylene production at the site and to provide additional PVC resin to meet the growing demands of our global customers.
The construction costs for these projects are estimated to range between $210 to $240 million. The ethylene expansion and feedstock conversion project is targeted for start-up in the second quarter of 2014 and the PVC expansion is projected to start up in late 2014. These projects are expected to create approximately 300 construction jobs.
The Kentucky Economic Development Finance Authority has preliminarily approved tax incentives up to $10 million, with an additional $7 million pending approval through the Kentucky Reinvestment Act (KRA), for these new projects and other work currently in progress at the site. KRA is designed to assist companies that need to make significant capital investment in Kentucky facilities in order to remain competitive.
In addition, Westlake announced an expansion of the existing PVC plant in Calvert City, Kentucky that will add approximately 200 million pounds per year of capacity to the existing 1,100 million pounds of annual capacity. This expansion allows Westlake to take advantage of the increased ethylene production at the site and to provide additional PVC resin to meet the growing demands of our global customers.
The construction costs for these projects are estimated to range between $210 to $240 million. The ethylene expansion and feedstock conversion project is targeted for start-up in the second quarter of 2014 and the PVC expansion is projected to start up in late 2014. These projects are expected to create approximately 300 construction jobs.
The Kentucky Economic Development Finance Authority has preliminarily approved tax incentives up to $10 million, with an additional $7 million pending approval through the Kentucky Reinvestment Act (KRA), for these new projects and other work currently in progress at the site. KRA is designed to assist companies that need to make significant capital investment in Kentucky facilities in order to remain competitive.
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