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
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.
Chlor Alkali Products and Vinyls
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. 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.
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