Olin to shut cumene and epoxy production. Olin Corporation has revealed its intention to shut down its Cumene facility in Terneuzen, Netherlands, as well as discontinuing solid epoxy resin production in Gumi, South Korea, and Guaruja, Brazil.
This move is a part of the company’s ongoing restructuring efforts, which aim to realign its global Epoxy assets with a more cost-efficient asset base.
The company anticipates facing roughly $57 million in restructuring expenses in Q1 2023, with $15 million being non-cash asset impairment charges. The cash portion of these charges will be disbursed over the coming three years.
Scott Sutton, Olin Corporation’s Chairman, President, and CEO, stated that the closures are a reaction to the soft global epoxy demand and the surplus supply in the market.
The firm seeks to raise its Epoxy business earnings to a more sustainable level and will persist in assessing and implementing additional measures to attain reinvestment economics throughout its Epoxy portfolio.
As a leading vertically-integrated global producer and distributor of chemical products, Olin Corporation offers a range of products such as chlorine, caustic soda, vinyls, epoxies, and chlorinated organics. The company is also a top U.S. manufacturer of ammunition.