US chemical producer Westlake has shuttered a PVC pipe plant in Springfield, Kentucky, as a result of excess capacity in the US market, the company said Thursday.
The measure comes as Westlake aims to "reduce costs and optimize production operations," the company said in a statement.
The plant was operated by Westlake's North American Pipe Corporation subsidiary and was one of the company's smallest pipe facilities.
"Customers currently being serviced from Springfield will not experience any supply disruption and will now be served through North American Pipe's other PVC pipe plants," the company said.
Westlake anticipates the impairment and shutdown-related costs of the Springfield facility will negatively impact its second quarter 2011 pre-tax earnings by nearly $4 million.
