Olin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having
its principal executive offices in Clayton, MO. We are a manufacturer concentrated
in three business segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester.
The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine
and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride,
methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene
and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium
hydroxide. The Epoxy segment produces and sells a full range of epoxy materials,
including allyl chloride, epichlorohydrin, liquid epoxy resins and downstream
products such as converted epoxy resins and additives. The Winchester segment
produces and sells sporting ammunition, reloading components, small caliber
military ammunition and components, and industrial cartridges.
We have been involved in the chlor alkali industry for more than 120 years
and are a major participant in the global chlor alkali industry. Chlorine, caustic
soda and hydrogen are co-produced commercially by the electrolysis of salt.
These co-produced products are produced simultaneously, and in a fixed ratio
of 1.0 ton of chlorine to 1.1 tons of caustic soda and 0.03 tons of hydrogen.
The industry refers to this as an Electrochemical Unit or ECU. With a demonstrated
capacity of 5.8 million ECUs as of the end of 2016, we have the largest global
chlor alkali capacity, according to data from IHS, Inc. (IHS). IHS is a global
information consulting company established in 1959 that provides information
to a variety of industries.
Chlorine is used as a raw material in the production of thousands of products,
including vinyls, urethanes, epoxy, water treatment chemicals and a variety
of other organic and inorganic chemicals. A significant portion of chlorine
production is consumed in the manufacture of ethylene dichloride (EDC) and vinyl
chloride monomer (VCM), both of which Chlor Alkali Products and Vinyls produces.
A large portion of our EDC production is utilized in the production of VCM,
but we are also one of the largest global participants in merchant EDC sales.
EDC and VCM are precursors for polyvinyl chloride, or PVC. PVC is a plastic
used in applications such as vinyl siding, pipe, pipe fittings and automotive
parts.
Our Chlor Alkali Products and Vinyls segment is one of the largest global marketers
of caustic soda, including caustic soda produced by TDCC in Brazil. The off-take
arrangement with TDCC in Brazil entitles the Chlor Alkali Products and Vinyls
segment the right to market and sell the caustic soda produced at TDCC’s
Aratu, Brazil site. The diversity of caustic sourcing allows us to cost effectively
supply customers worldwide. Caustic soda has a wide variety of end-use applications,
the largest of which include water treatment, alumina, pulp and paper, urethanes,
detergents and soaps and a variety of other organic and inorganic chemicals.
Our Chlor Alkali Products and Vinyls segment also includes the acquired chlorinated
organics business which is the largest global producer of chlorinated organic
products that include chloromethanes (methyl chloride, methylene chloride, chloroform
and carbon tetrachloride) and chloroethenes (perchloroethylene, trichloroethylene,
and vinylidene chloride). Chlorinated organics participates in both the solvent
segment, as well as the intermediate segment of the global chlorocarbon industry
with a focus on sustainable applications and in applications where we can benefit
from our cost advantages. Intermediate products are used as feedstocks in the
production of fluoropolymers, fluorocarbon refrigerants and blowing agents,
silicones, cellulosics and agricultural chemicals. Solvent products are sold
into end uses such as surface preparation, dry cleaning, pharmaceuticals and
regeneration of refining catalysts. This business’s unique technology
allows us to utilize both hydrochloric acid and chlorinated hydrocarbon byproducts
(RCl), produced by our other production processes, as raw materials in an integrated
system. These manufacturing facilities also consume chlorine, which generates
caustic soda production and sales.
We also manufacture and sell other chlor alkali-related products, including
hydrochloric acid, sodium hypochlorite (bleach) and potassium hyrdroxide, which
we refer to as co-products. The production of co-products, chlorinated organics
and epoxy generally consume chlorine as a raw material creating downstream applications
that upgrade the value of chlorine and enable caustic soda production. As industry
leaders in chlorinated organics and epoxy resins, the addition of the Acquired
Business creates integrated outlets for our captive chlorine. With the addition
of the Acquired Business, we have increased the diversification of our high
value outlets for chlorine from three to nineteen.
The Chlor Alkali Products and Vinyls segment’s products are delivered
by pipeline, marine vessel, deep-water and coastal barge, railcar and truck.
Our chemical distribution infrastructure provides us with geographically advantaged
storage capacity and provides us with a private fleet of trucks, tankers and
trailers that expands our geographic coverage and enhance our service capabilities.
At our largest integrated product sites, our deep-water access enables us to
reach global markets.
Our Chlor Alkali Products and Vinyls segment maintains strong relationships
with TDCC as both a customer and supplier. These relationships are maintained
through long-term cost based contracts that provide us with a reliable supply
of key raw materials and predictable and consistent demand for our end use products.
Key products sold to TDCC include chlorine, cell effluent, chlorinated organics
and VCM. Key raw materials received from TDCC include ethylene and electricity.
Ethylene is supplied for the vinyl business under a long-term supply arrangement
with TDCC whereby we receive ethylene at integrated producer economics.
With the addition of the Acquired Business, we acquired TDCC’s Global
Epoxy business. The Epoxy business was one of the first major manufacturers
of epoxy products, and has continued to build on a half a century of history
through product innovation and technical excellence. According to data from
IHS, the Epoxy segment is one of the largest fully integrated global producers
of epoxy resins, curing agents and intermediates. The Epoxy segment has a favorable
manufacturing cost position which is driven by a combination of scale and integration
into low cost feedstocks (including chlorine, caustic soda, allylics and aromatics).
The Epoxy segment produces and sells a full range of epoxy materials, including
upstream products such as allyl chloride (Allyl) and epichlorohydrin (EPI),
midstream products such as liquid epoxy resins (LER), and downstream products
such as converted epoxy resins (CER) and additives.
Winchester is a premier developer and manufacturer of small caliber ammunition
for sale to domestic and international retailers (commercial customers), law
enforcement agencies and domestic and international militaries. We believe we
are a leading U.S. producer of ammunition for recreational shooters, hunters,
law enforcement agencies and the U.S. Armed Forces. Winchester also manufacturers
industrial products that have various applications in the construction industry.
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