We are a vertically integrated global manufacturer and marketer of basic chemicals,
vinyls, polymers and building products. Our products include some of the most
widely used chemicals in the world, which are fundamental to many diverse consumer
and industrial markets, including flexible and rigid packaging, automotive products,
coatings, water treatment, refrigerants, residential and commercial construction
as well as other durable and non-durable goods. We operate in two principal
operating segments, Olefins and Vinyls. We are highly integrated along our olefins
product chain with significant downstream integration into polyethylene and
styrene monomer. We are also an integrated global producer of vinyls with substantial
downstream integration into polyvinyl chloride ("PVC") building products.
We began operations in 1986 after our first polyethylene plant, an Olefins
segment business, near Lake Charles, Louisiana was acquired from Occidental
Petroleum Corporation. We began our vinyls operations in 1990 with the acquisition
of a vinyl chloride monomer ("VCM") plant in Calvert City, Kentucky
from the Goodrich Corporation. In 1992, we commenced our Vinyls segment building
products operations after acquiring three PVC pipe plants. Since 1986, we have
grown rapidly into an integrated global producer of petrochemicals, vinyls,
polymers and building products. We achieved this by acquiring existing plants
or constructing new plants and completing numerous capacity or production line
expansions. We regularly consider acquisitions and other internal and external
growth opportunities that would be consistent with or complementary to our overall
business strategy.
In 2014, we formed Westlake Chemical Partners LP ("Westlake Partners")
to operate, acquire and develop ethylene production facilities and related assets.
Also in 2014, Westlake Partners completed an initial public offering of 12,937,500
common units (the "Westlake Partners IPO"). As of February 15, 2017,
Westlake Partners assets consist of a 13.3% limited partner interest in Westlake
Chemical OpCo LP ("OpCo"), as well as the general partner interest
in OpCo. Prior to the Westlake Partners IPO, OpCos assets were wholly owned
by us. OpCos assets include two ethylene production facilities at our olefins
facility at our Lake Charles site, one ethylene production facility at our Calvert
City site and a 200-mile common carrier ethylene pipeline that runs from Mont
Belvieu, Texas to the Longview, Texas site, which includes our Longview polyethylene
production facility. We retain an 86.7% limited partner interest in OpCo, a
52.2% limited partner interest in Westlake Partners (common and subordinated
units), a general partner interest in Westlake Partners and incentive distribution
rights. The operations of Westlake Partners are consolidated in our financial
statements. We are party to certain agreements with Westlake Partners and OpCo
whereby, among other things,
On August 31, 2016, we completed the acquisition of Axiall Corporation ("Axiall")
for $33.00 per share in an all-cash transaction (the "Merger"), pursuant
to the terms of the Agreement and Plan of Merger (the "Merger Agreement"),
dated as of June 10, 2016, by and among Westlake, Axiall and Lagoon Merger Sub,
Inc., a wholly-owned subsidiary of Westlake. Axiall is a manufacturer and international
marketer of chemicals and building products, with manufacturing sites in North
America. The combined company is the third-largest global chlor-alkali producer
and the third-largest PVC producer in the world.
We benefit from highly integrated production facilities that allow us to process
raw materials into higher value-added chemicals and building products. As of
February 15, 2017, we (directly and through OpCo and our 95% and 60% owned Asian
joint ventures) had 39.8 billion pounds per year of aggregate production capacity
at numerous manufacturing sites in North America, Europe and Asia.
Olefins are the basic building blocks used to create a wide variety of petrochemical
products. We manufacture ethylene (through OpCo), polyethylene, styrene and
associated co-products at our manufacturing facility in Lake Charles and polyethylene
at our Longview facility. We have two ethylene plants, which are owned by OpCo,
two polyethylene plants and one styrene monomer plant at our olefins facility
at our Lake Charles site. We have three polyethylene plants and a specialty
polyethylene wax plant at our Longview site.
Principal products in our integrated Vinyls segment include PVC, VCM, EDC, chlor-alkali
(chlorine and caustic soda) and chlorinated derivative products and, through
OpCo, ethylene. We also manufacture and sell building products fabricated from
PVC, including siding, pipe, fittings, profiles, trim, mouldings, fence and
decking products, window and door components and film and sheet products. We
manage our integrated Vinyls production chain, from the basic chemicals to finished
building products, to optimize product margins and capacity utilization. Our
primary North American chemical manufacturing facilities are located in our
Calvert City, Kentucky and Lake Charles, Plaquemine and Geismar, Louisiana sites.
Our Calvert City site includes an ethylene plant, which is owned by OpCo, a
chlor-alkali plant, a VCM plant and a PVC plant. Our Lake Charles site includes
three chlor-alkali plants, two VCM plants, a chlorinated derivative products
plant and cogeneration assets. Our Plaquemine site includes a chlor-alkali plant,
a VCM plant, a PVC plant and cogeneration assets. Our Geismar site includes
a chlor-alkali plant, a VCM plant and a PVC plant.
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