Westlake Chemical (NYSE: WLK) is a vertically integrated manufacturer and marketer of basic chemicals, vinyls, polymers and fabricated products.
Westlake was founded in 1986 by Mr. T.T. Chao. His sons, James and Albert remain Chairman of the Board and CEO respectively.
The company 10K (2013) provides considerable detail. Ethylene is made in two plants by ethane cracking in Lake Charles, LA. (One of the two plants is equipped to use either ethane, ethane/propane blend, or propane/butane/naphtha.) Ethylene is also made by propane cracking in Calvert City, KY. That plant is being converted to ethane cracking to take advantage of abundant shale gas.
Westlake is the largest US producer of LDPE (low-density polyethylene). In addition to natural gas liquids or petroleum feedstocks for ethylene, the company purchases butene, hexene (for polyethylene), and benzene (for conversion to styrene).
Competitors are listed as--
The company purchases electricity and operates chlor-alkali plants (electrolysis of salt to make chlorine and caustic soda) at both Calvert City, KY and Geismar, LA. Caustic soda is sold to external customers. The chlorine is reacted with ethylene to make ethylene dichloride (EDC), which is converted to vinyl chloride monomer (VCM) and then polyvinyl chloride (PVC) which in turn is converted to PVC pipe and building products like vinyl window frames. The company makes building products at 12 facilities. Westlake has the capacity to convert all of its PVC to building products but also sells PVC to downstream converters. The company has 59% interest in a jv with Suzhou Huasu Plastics Co. in China that makes PVC resin, building products, PVC film and sheets. In 2014, Westlake increased its jv ownership by 35.7% (by buying out the interest of INEOS, subject to government approval).
In July, 2014, Westlake acquired Vinnolit Holdings Gmbh of Germany adding VCM, PVC, and caustic soda capacity in Germany and UK.
PVC competitors include--
Building Products competitors include--
- Westlake Chemical Partners LP (NYSE: WLKP) In March, 2014, Westlake Partners was created to operate the company's ethylene facilities consisting of two plants in Lake Charles, LA, one plant in Calvert City, KY, and a two hundred mile pipeline connecting Mont Belvieu, TX with Longview, TX, where Westlake manufactures polyethylene. Westlake Partners is general partner in the operating company and owns 10.6% of the limited partner interest. Westlake retained 89.4% of the limited partner interest in the operating company and 52.2% limited partner interest in Westlake Partners. The operating company is intended to supply 95% of the ethylene it produces to Westlake at a fixed margin of $0.10/lb.
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