Jun. 17 at 10:13 AM
$WLK Westlake announces additional workforce reduction of ~ 230 employees
In a regulatory filing, Westlake stated, "As previously disclosed, in July 2024, Westlake approved a plan to mothball the allyl chloride and epichlorohydrin units at the company's site in Pernis, the Netherlands. The company has continued to operate the liquid epoxy resin and bisphenol A 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 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 190M 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 30M and charges for environmental remediation and other plant shut down costs of approximately EUR 160M. 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, if appropriate, the amount of any material impairment charges or costs, once they are determinable."
