Westlake Chemical Corporation operates as a vertically integrated global manufacturer and marketer of basic chemicals, vinyls, polymers, and fabricated building products. The company’s products include some of the used chemicals in the world, which are fundamental to various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction, as well as other durable and non-durable goods. Segments The company operates in two principal operating segments, Olefins and Vinyls. Olefins Olefins are the basic building blocks used to create various petrochemical products. The company manufactures ethylene (through Westlake Chemical OpCo LP (OpCo)), polyethylene, styrene and associated co-products at its manufacturing facility in Lake Charles and polyethylene at its Longview facility. The company has two ethylene plants, which are owned by OpCo, two polyethylene plants and one styrene monomer plant at its Lake Charles site. The company has three polyethylene plants and a specialty polyethylene wax plant at its Longview site. Ethylene: Ethylene is the key building block used to produce a large number of higher value-added chemicals, including polyethylene, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and styrene. OpCo has the capacity to produce 2.7 billion pounds of ethylene per year at the company’s Lake Charles site, and has the capability to consume all of OpCo's production that it purchases at Lake Charles to produce polyethylene and styrene monomer in its Olefins business and to produce VCM and EDC in its Vinyls business. OpCo also produces ethylene for the company’s Vinyls segment at its Calvert City site, and all of the ethylene it purchases from OpCo at Calvert City is used internally in the production of VCM. In addition, the company (through OpCo) produces ethylene co-products, including chemical grade propylene, crude butadiene, pyrolysis gasoline and hydrogen. It (through OpCo) sells its entire output of these co-products to external customers. Polyethylene: Polyethylene is used in the manufacture of various film, coatings and molded product applications primarily used in packaging. Polyethylene is generally classified as either low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE) or high-density polyethylene (HDPE). The density correlates to the relative stiffness of the end-use products. The difference between LDPE and LLDPE is molecular, and products produced from LLDPE, in general, have higher strength properties than products produced from LDPE. LDPE exhibits clarity and other physical properties and is used in end products, such as bread bags, dry cleaning bags, food wraps, milk carton coatings and snack food packaging. LLDPE is used for higher film strength applications, such as stretch film and heavy duty sacks. HDPE is used to manufacture products, such as grocery, merchandise and trash bags, rigid plastic containers, plastic closures and pipe. The company produces LDPE by capacity in North America and predominantly uses the autoclave technology (versus tubular technology). The company also has the capacity to produce 1.1 billion pounds of LLDPE per year in various formulations. It produces LDPE and LLDPE at both Lake Charles and Longview. The company sells polyethylene to external customers as a final product in pellet form. Styrene: Styrene is used to produce derivatives, such as polystyrene, acrylonitrile butadiene styrene, unsaturated polyester and synthetic rubber. These derivatives are used in a number of applications, including consumer disposables, food packaging, housewares, paints and coatings, building materials, tires and toys. The company produces styrene at its Lake Charles plant, where it has the capacity to produce 570 million pounds of styrene per year, all of which is sold to external customers. Feedstocks The company (through OpCo) produces most of the ethylene required to produce its polyethylene, VCM and styrene. Ethylene can be produced from either petroleum liquid feedstocks, such as naphtha, condensates and gas oils, or from natural gas liquid
westlake chemical corp (WLK:New York)
2801 Post Oak Boulevard
Houston, TX 77056
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