What Westlake Corporation told the SEC could break it.

US-manufactured commodity PVC resins, traditionally exported in volume, face anti-dumping duties — EU 58.0%, UK 56.01%, Brazil 43.7% as of Dec 2025 — depressing demand for and sales of Westlake's PVC-based products in those regions and risking permanent substitution.

“As of December 2025, the European Union had imposed a tariff margin of 58.0%, the United Kingdom had imposed a duty of 56.01% and Brazil had imposed a duty of 43.7%.”

New and expanded US tariffs in 2025 (emphasizing China and large-trade-deficit countries) have led and may continue to lead to retaliatory tariffs by other countries, impacting Westlake's global supply and distribution chains.

“In 2025, the U.S. government announced new and expanded tariffs on products imported from other countries, with an emphasis on the countries with which the United States has the largest trade deficits, including China. Increased tariffs by the United States have led and may continue to lead to the imposition of retaliatory tariffs by other countries.”

Climate change may heighten hurricane activity in the Gulf of Mexico and other natural-disaster hazards that threaten Westlake's facilities, particularly its Louisiana (Lake Charles) operations.

“Climate change may result in heightened hurricane activity in the Gulf of Mexico and other weather and natural disaster hazards that pose a risk to our facilities, particularly those in Louisiana.”

Westlake's Lake Charles ethylene plants use ethane as the primary feedstock, supplied via pipelines from Texas and Louisiana; the company's chemical economics are tied to ethane/NGL availability and pricing.

“Both of OpCo's Lake Charles ethylene plants use ethane as the primary feedstock. Pursuant to a feedstock supply agreement between us and OpCo, OpCo receives ethane feedstock at our Lake Charles site through several pipelines from a variety of suppliers in Texas and Louisiana.”

Westlake relies on a limited number of outside suppliers for specified feedstocks and services and obtains a significant portion of its raw materials from a few key suppliers, exposing it to price and supply risk if a supplier fails to perform.

“We obtain a significant portion of our raw materials from a few key suppliers. If any of these suppliers is unable to meet its obligations under any present or future supply agreements, we may be forced to pay higher prices to obtain the necessary raw materials.”