MOSCOW (MRC) -- Olin Corporation announced that it plans to permanently shut down a chlor alkali plant with a capacity of 230,000 tons and its Vinylidene Chloride (VDC) production facility, both in Freeport, Texas, said the company.
These closures are expected to be completed before the end of 2020. When completed, these actions are forecast to reduce Olin's annual operating costs by approximately $35 million. Olin's fourth quarter 2019 results will contain approximately $65 million of pretax non-cash restructuring charges, representing asset impairment charges, associated with these plans.
"With today's announcement we have taken necessary steps to reduce our annual fixed costs, align our production capacity with the current needs of the marketplace and focus on the chlorine derivatives that generate the most value for the organization," said John E. Fischer, Chairman, President and Chief Executive Officer.
Major US phenol producers are INEOS Phenol, Altivia, AdvanSix, Shell Chemicals, SABIC and Olin.
Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).
According to ICIS-MRC Price report, Russia's estimated consumption of polycarbonate (PC) rose in in the first three quarters of 2019 by 11% year on year to 61,000 tonnes (54,800 tonnes a year earlier). Consumption in the injection moulding sector grew in the first nine months of 2019 by 10% year on year to 7,900 tonnes from 7,200 tonnes a year earlier.
Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.