Westlake Corporation (NYSE: WLK) said it will close its polyvinyl chloride plant in Cologne, Germany, citing weak demand, elevated energy costs, and increased import pressure from Asia affecting European chemical operations.

The Cologne facility has an annual production capacity of approximately 165,000 metric tons of PVC. The site is expected to cease operations in the first quarter of 2027.

Westlake expects to record total pre-tax charges of approximately $205 million in connection with the closure, consisting of approximately $100 million in cash charges and approximately $105 million in non-cash charges. About $110 million of those charges are expected to be recorded in 2026, with the remainder in 2027.

The company said the Cologne plant carries higher costs than its other European PVC facilities due to its smaller scale and higher logistical burden. Westlake said it will continue to serve customers from its remaining German PVC facilities, including its recently acquired Wilhelmshaven site.

"Given the persistent, challenging market conditions facing the global chemical industry, we have made the difficult decision to cease operations at our Cologne, Germany PVC site as part of our ongoing optimization of business operations," said President and Chief Executive Officer Jean-Marc Gilson.

Beyond Europe, Westlake said PVC and polyethylene average prices in North America were lower in the third quarter of 2026 compared to the second quarter, as price increases that followed the onset of the Iran conflict moderated. The company also cited higher freight costs from rising diesel prices and a moderate decline in sales volume in its Housing & Infrastructure Products segment tied to a slowdown in housing activity.

Westlake said it expects sequentially lower financial performance in the third quarter of 2026 compared to the second quarter of 2026. The company is headquartered in Houston and has operations in North America, Europe, and Asia.