Westlake Growth & Investment Strategy
42
Westlake
Formosa
Shin-Etsu
Benefitting from Compelling Supply & Demand Dynamics
2021 Global Caustic & PVC Capacity
Relative Industry Changes in Capacity Compared to World GDP:
Global Over/Under Investment PVC Capacity
W
5%
Both PVC and Chlor-Alkali demand
growth is expected to materially exceed
supply additions in the coming years
supporting a robust outlook
0%
-5%
-10%
Olin
Occidental
INEOS
Westlake
Global leader in
areas with
favorable
long-term supply
and demand
dynamics
Complexity and capital cost of the
Chlorovinyls chain raises barriers
to entry leading to less capacity
additions over time
•
PVC demand is expected to be
strong driven by global housing
and infrastructure markets
10%
5%
Xinjiang Zhongtai
Dow
0
2,000 4,000 6,000 8,000 10,000
KMT
Caustic demand is driven by broad
global economic growth with
applications across a variety of
end uses from paper to alumina to
soaps and detergent
0%
-5%
-10%
Source: IHS Markit, IMF. 2021 Global Caustic & PVC Capacity based on total aggregate capacity of tons of PVC and Caustic Soda by company
2010
10%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Global Over/Under Investment Caustic Soda Capacity
Largest Global Chlorovinyl Producer Providing Customers Leading Products and Service
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Westlake
2023
2024
2025View entire presentation