Olin Corporation announced that it plans to permanently shut down a chloralkali plant with a capacity of 230,000 tons and its Vinylidene Chloride (VDC) production facility, both in Freeport, Texas.
These closures are expected to be completed before the end of 2020.
When completed, these actions are forecast to reduce Olin's annual operating costs by approximately $35 million. Olin's fourth-quarter 2019 results will contain approximately $65 million of pre-tax non-cash restructuring charges, representing asset impairment charges, associated with these plans.
"With today's announcement we have taken necessary steps to reduce our annual fixed costs, align our production capacity with the current needs of the marketplace and focus on the chlorine derivatives that generate the most value for the organization," said John E. Fischer, Chairman, President, and Chief Executive Officer.
