Westlake Chemical is scoping expansion opportunities to meet growing demand for construction staple polyvinyl chloride and possibly increasing its internal ethylene production, CEO Albert Chao said May 4, as reported by S&P Global.
He said during the company's Q1 2021 earnings call that Westlake is a major US ethylene buyer, more than 1 billion lb (453,592 mt) per year, to feed downstream derivatives that the company's internal ethylene production cannot cover.
"Integration in that area would be helpful," Chao said.
The company also may add downstream PVC capacity, given strong demand for pipes, window frames, vinyl siding and other products for housing, he said.
"We are finally above the 50-year average for new home construction in the US for the first few months of this year," Chao said. "We expect that trend to continue, and building products demand will increase," so Westlake is looking expanding PVC production.
He noted that Westlake has not announced any large capacity expansions, "but small increases to meet the needs, growing needs of our customers."
Westlake announced the company's Q1 2021 net income reached $242 million, up 67% from $145 million in the year-ago period. Read more.
