Olin cuts chlor alkali production

March 22, 2016

The company plans to close its chlor alkali plant in Henderson, Nevada, and reconfigure the facility to manufacture industrial bleach and distribute caustic soda and hydrochloric acid.

Olin Corp, a manufacturer of chemical products ammunition, said on Monday that it will reduce its chlor alkali manufacturing capacity by a total of 433,000 tons across three separate locations.

The company plans to close its chlor alkali plant in Henderson, Nevada, and reconfigure the facility to manufacture industrial bleach and distribute caustic soda and hydrochloric acid. This will reduce chlor alkali manufacturing capacity by 153,000 tons from March 31, 2016, and result in the loss of about 100 jobs.

At Olin’s Niagara Falls, New York, plant, chlor alkali capacity was reduced by 20 percent from 300,000 tons to 240,000 tons earlier this year. This plant continues to produce industrial bleach and on-purpose hydrochloric acid, in addition to chlor alkali.

The company said that it “remains committed” to maintaining and growing its position as the leading supplier of industrial bleach in North America.

Chlor alkali capacity at Olin’s Freeport, Texas, facility will be reduced by 220,000 tons with effect from March 31, 2016. This site operates both diaphragm and membrane cell technologies and the planned reduction will be entirely from diaphragm cell capacity.

Following the capacity reduction in Freeport, the plant will have 1,450,000 tons of membrane cell capacity and 1,580,000 tons of diaphragm cell capacity.

To pay for the capacity reductions in its chlor alkali business, Olin will take a $95 million restructuring charge in its first quarter 2016 results.

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