The company's plants have been operating at reduced rates since the third quarter of this year due to the general weakened demand as a result of the continued deterioration in the U.S. and global economies and as a reaction to the concurrent sharp product price declines due to the recent collapse in energy and feedstock prices. In an effort to manage the build up of excess inventories and to control costs the company elected to idle the ethylene unit noted above until the market and demand recover.
Lower production, weakened product demand and inventory write downs due to sharp drop in product prices will have a materially negative impact on the company's fourth quarter and full year 2008 results. The company does not anticipate further significant inventory write downs unless there are further material decreases in energy, feedstock and product prices.
"The slowing economic environment is having a more substantial impact on
consumer demand and the entire supply chain than previously anticipated,
resulting in reduced volumes and margins in our businesses," said
The statements in this release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties.
Actual results could differ materially, based on factors including, but not
limited to, national and global economic conditions, changes in the financial
markets and the company's results of operations. For more detailed
information about the factors that could cause actual results to differ
materially, please refer to Westlake's Annual Report on Form 10-K for the year
Westlake Chemical Corporation-0- 12/17/2008/CONTACT: David R. Hansen, Media Relations, or Steven Bender Investor Relations, both of Westlake Chemical Corporation, +1-713-960-9111/ /Web Site: http://www.westlake.com / (WLK) CO: Westlake Chemical CorporationST: Texas, LouisianaIN: CHM OIL SU: PR -- DA52887 -- 9987 12/17/2008 06:00 ESThttp://www.prnewswire.com