Brazil. Olin Corporation announces that it has made the decision to cease operations at its plant in Guarujá, Brazil.
To this is added the announcement of the cessation of solid epoxy resin production at its facilities in Gumi, South Korea.
Olin's first quarter 2023 results are anticipated to include approximately $57 million of restructuring charges associated with these plans. Approximately $US 15 million of these restructuring charges represent impairment charges on non-cash assets.
The cash component of these charges is expected to be paid over the next three years.
"This is another step in aligning the size of our global epoxy asset footprint to the most profitable asset base to support our strategic operating model," said Scott Sutton, the company's president and chief executive officer.
"Our epoxy business continues to experience weak global demand for epoxy and excess supply availability. This action reinforces our commitment to raise profits from our epoxy business to a more sustainable level," said Sutton.
"We will continue to evaluate and execute additional actions that adjust the size of the business to achieve reinvestment savings in our epoxy portfolio."
Olin Corporation is a vertically integrated global manufacturer and distributor of chemicals. Chemicals produced include chlorine and caustic soda, vinyl, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid.
