CLAYTON, Mo., March 21, 2016 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) ("Olin") announced today that its
first quarter 2016 results will contain approximately $95 million of pretax restructuring
charges. These charges are associated with its plans to close
a combined total of 433,000 tons of chlor alkali capacity across
three separate Olin locations. Approximately 80 percent of
these restructuring charges represent non-cash asset impairment
charges. The cash component of these charges includes
employee related costs and contract terminations associated with
the Henderson, Nevada
facility.
Olin will close its chlor alkali plant in Henderson, Nevada and reconfigure the facility
to manufacture bleach and distribute caustic soda and hydrochloric
acid. This action will reduce its chlor alkali manufacturing
capacity by 153,000 tons. The Henderson workforce will be reduced by
approximately 100 positions. The manufacturing of chlor
alkali at the location will cease on March
31, 2016. Olin remains committed to maintaining and
growing its position as the leading North American supplier of
industrial bleach.
The capacity of the Niagara Falls, New
York chlor alkali plant was reduced 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 chlor alkali capacity at the Freeport, Texas facility will be reduced by
220,000 tons. The Freeport site
operates both diaphragm and membrane cell technologies. The
220,000-ton reduction will be entirely from diaphragm cell
capacity. Following the capacity reduction in Freeport, the site will have 1,450,000 tons of
membrane cell capacity and 1,580,000 tons of diaphragm cell
capacity. The capacity reduction will be effective
March 31, 2016.
COMPANY DESCRIPTION
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.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements.
These statements relate to analyses and other information that are
based on management's beliefs, certain assumptions made by
management, forecasts of future results, and current expectations,
estimates and projections about the markets and economy in which we
and our various segments operate. These statements may
include statements regarding the recent acquisition of the Acquired
Business from TDCC, the expected benefits and synergies of the
transaction, and future opportunities for the combined company
following the transaction. The statements contained in this
communication that are not statements of historical fact may
include forward-looking statements that involve a number of risks
and uncertainties.
We have used the words "anticipate," "intend," "may," "expect,"
"believe," "should," "plan," "project," "estimate," "forecast,"
"optimistic," and variations of such words and similar expressions
in this communication to identify such forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions, which are difficult to predict and many of which are
beyond our control. Therefore, actual outcomes and results
may differ materially from those matters expressed or implied in
such forward-looking statements. We undertake no obligation
to update publicly any forward-looking statements, whether as a
result of future events, new information or otherwise.
Relative to the dividend, the payment of cash dividends is subject
to the discretion of our board of directors and will be determined
in light of then-current conditions, including our earnings, our
operations, our financial conditions, our capital requirements and
other factors deemed relevant by our board of directors. In
the future, our board of directors may change our dividend policy,
including the frequency or amount of any dividend, in light of
then-existing conditions.
The risks, uncertainties and assumptions involved in our
forward-looking statements, many of which are discussed in more
detail in our filings with the SEC, including without limitation
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2015,
include, but are not limited to, the following:
- sensitivity to economic, business and market conditions in
the United States and overseas,
including economic instability or a downturn in the sectors served
by us, such as ammunition, vinyls, urethanes, and pulp and paper,
and the migration by United States
customers to low-cost foreign locations;
- the cyclical nature of our operating results, particularly
declines in average selling prices in the chlor alkali industry and
the supply/demand balance for our products, including the impact of
excess industry capacity or an imbalance in demand for our chlor
alkali products;
- our substantial amount of indebtedness and significant debt
service obligations;
- weak industry conditions could affect our ability to comply
with the financial maintenance covenants in our senior credit
facilities;
- the integration of the Acquired Business being more difficult,
time-consuming or costly than expected;
- higher-than-expected raw material and energy, transportation,
and/or logistics costs;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- economic and industry downturns that result in diminished
product demand and excess manufacturing capacity in any of our
segments and that, in many cases, result in lower selling prices
and profits;
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- changes in legislation or government regulations or
policies;
- failure to control costs or to achieve targeted cost
reductions;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings;
- unexpected litigation outcomes;
- complications resulting from our multiple enterprise resource
planning (ERP) systems;
- the failure or an interruption of our information technology
systems;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor disruptions
and production hazards;
- the effects of any declines in global equity markets on asset
values and any declines in interest rates used to value the
liabilities in our pension plan;
- future funding obligations to our qualified defined benefit
pension plan attributable to assumed pension liabilities;
- fluctuations in foreign currency exchange rates;
- failure to attract, retain and motivate key employees;
- our ability to provide the same types and levels of benefits,
services and resources to the Acquired Business that historically
have been provided by TDCC at the same cost;
- differences between the historical financial information of
Olin and the Acquired Business and our future operating
performance;
- the effect of any changes resulting from the transaction with
TDCC in customer, supplier and other business relationships;
and
- the effects of restrictions imposed on our business following
the transaction with TDCC in order to avoid significant tax-related
liabilities.
All of our forward-looking statements should be considered in
light of these factors. In addition, other risks and
uncertainties not presently known to us or that we consider
immaterial could affect the accuracy of our forward-looking
statements.
2016-06
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SOURCE Olin Corporation