Olin Corporation Lifts Systemwide Force Majeure for Chlor-Alkali Products
Olin (NYSE: OLN), a leading global manufacturer of chemical products and ammunition, has lifted its systemwide force majeure on chlor-alkali products declared on July 10, 2024. The company has successfully resumed chlor-alkali and derivative production following a temporary disruption at its Freeport, Texas operations caused by Hurricane Beryl. Olin's Epoxy business is currently restarting its Aromatics assets, which remain under force majeure. The company reaffirms its commitment to safe and reliable asset operation.
Olin (NYSE: OLN), un produttore globale leader di prodotti chimici e munizioni, ha annullato la sua forza maggiore sistematica sui prodotti cloro-alcalini dichiarata il 10 luglio 2024. L'azienda ha ripreso con successo la produzione di cloro-alcalini e derivati dopo una temporanea interruzione delle operazioni a Freeport, Texas, causata dall'uragano Beryl. Il business dell'epossidico di Olin sta attualmente riavviando i suoi asset aromatici, che rimangono sotto forza maggiore. L'azienda riafferma il proprio impegno per un'operazione sicura e affidabile degli asset.
Olin (NYSE: OLN), un fabricante global líder de productos químicos y municiones, ha levantado su fuerza mayor sistemática sobre los productos cloroalcalinos declarada el 10 de julio de 2024. La empresa ha reanudado con éxito la producción de cloroalcalinos y derivados tras una interrupción temporal en sus operaciones de Freeport, Texas, causada por el huracán Beryl. El negocio de epóxicos de Olin actualmente está reiniciando sus activos aromáticos, que permanecen bajo fuerza mayor. La empresa reafirma su compromiso con una operación de activos segura y confiable.
Olin (NYSE: OLN), 화학 제품과 탄약의 글로벌 선도 제조업체는 2024년 7월 10일 선언된 염소-알카리 제품에 대한 전면적 힘의 불가항력 조치를 해제했습니다. 이 회사는 허리케인 베릴로 인해 텍사스 프리포트에서 일어난 일시적인 중단 후 염소-알카리 및 파생물 생산을 성공적으로 재개했습니다. Olin의 에폭시 사업부는 현재 아로마틱 자산을 재가동하고 있습니다, 이 자산은 여전히 불가항력에 해당합니다. 회사는 자산 운영의 안전성과 신뢰성에 대한 의지를 다시 한번 확인합니다.
Olin (NYSE: OLN), un fabricant mondial de premier plan de produits chimiques et de munitions, a levé sa force majeure systémique sur les produits chlor-alkalins déclarée le 10 juillet 2024. L'entreprise a réussi à reprendre la production de chlor-alkalins et de dérivés après une interruption temporaire de ses opérations à Freeport, Texas, causée par l'ouragan Beryl. L'activité époxy d'Olin redémarre actuellement ses actifs aromatiques, qui demeurent sous force majeure. L'entreprise réaffirme son engagement envers l'exploitation sécurisée et fiable de ses actifs.
Olin (NYSE: OLN), ein führender globaler Hersteller von chemischen Produkten und Munition, hat seinen Übergreifenden Höheren Gewalt auf Chlor-Alkali-Produkte aufgehoben, die am 10. Juli 2024 erklärt wurden. Das Unternehmen hat die Produktion von Chlor-Alkali und Derivaten erfolgreich wieder aufgenommen nach einer vorübergehenden Unterbrechung seiner Betriebe in Freeport, Texas, die durch den Hurrikan Beryl verursacht wurde. Olin's Epoxid-Geschäft startet derzeit seine Aromatische Anlagen neu, die weiterhin unter höherer Gewalt stehen. Das Unternehmen bekräftigt sein Engagement für den sicheren und zuverlässigen Betrieb der Anlagen.
- Lifting of systemwide force majeure on chlor-alkali products
- Resumption of chlor-alkali and derivative production
- Restarting of Aromatics assets in Epoxy business
- Epoxy business Aromatics assets still under force majeure
- Recent disruption in Freeport, Texas operations due to Hurricane Beryl
Olin's lifting of the systemwide force majeure on chlor-alkali products signals a return to normal operations after the disruption caused by Hurricane Beryl. This is positive news for the company and its customers, as it indicates that supply chain issues are being resolved. The chlor-alkali segment is a significant revenue generator for Olin and resuming full production should help stabilize the company's financial performance.
However, investors should note that the Epoxy business's Aromatics assets remain under force majeure. This ongoing disruption could potentially impact Olin's Q3 financial results, as the Epoxy segment is another key contributor to the company's bottom line. The market will likely be watching closely for updates on the full restoration of these assets.
Overall, this announcement suggests Olin is recovering well from the hurricane's impact, which should help alleviate concerns about prolonged production issues. However, the full financial impact of the disruption will need to be assessed in upcoming earnings reports.
The lifting of the force majeure for chlor-alkali products indicates that Olin has successfully mitigated the environmental risks associated with Hurricane Beryl's impact on its Freeport, Texas operations. This swift recovery demonstrates the company's robust disaster preparedness and response protocols, which is important for maintaining investor confidence in the chemical industry.
However, the ongoing force majeure for the Epoxy business's Aromatics assets suggests there may be lingering environmental or safety concerns that require further attention. Investors should monitor this situation closely, as prolonged issues could potentially lead to increased regulatory scrutiny or additional costs for remediation and safety improvements.
Olin's commitment to "safe and reliable operation of its assets" is reassuring, but stakeholders should remain vigilant about potential long-term environmental impacts and the company's ongoing efforts to enhance resilience against future climate-related disruptions.
The lifting of the systemwide force majeure for chlor-alkali products is a significant development for Olin's supply chain. This move will likely alleviate pressure on downstream industries that rely on these essential chemicals, potentially leading to stabilized prices and improved availability of products in sectors such as water treatment, paper production and plastics manufacturing.
However, the ongoing force majeure for the Epoxy business's Aromatics assets suggests that supply chain disruptions are not entirely resolved. This could lead to continued shortages and price volatility in specific epoxy-related markets, affecting industries like coatings, adhesives and composites.
Investors should closely monitor Olin's ability to quickly restart and ramp up production across all affected units. The company's success in managing these supply chain challenges could significantly impact its market position and customer relationships in the competitive chemical industry landscape.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a leading
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.
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The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Reports on Form 10-Q and other reports furnished or filed with the SEC, include, but are not limited to, the following:
Business, Industry and Operational Risks
- sensitivity to economic, business and market conditions in
the United States and overseas, including economic instability or a downturn in the sectors served by us; - declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
- unsuccessful execution of our strategic operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
- failure to identify, attract, develop, retain and motivate qualified employees throughout the organization and ability to manage executive officer and other key senior management transitions;
- failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
- our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
- the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
- exposure to physical risks associated with climate-related events or increased severity and frequency of severe weather events;
- availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
- the failure or an interruption, including cyber-attacks, of our information technology systems;
- our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
- risks associated with our international sales and operations, including economic, political or regulatory changes;
- our indebtedness and debt service obligations;
- weak industry conditions affecting our ability to comply with the financial maintenance covenants in our senior credit facility;
- adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
- the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
- our long-range plan assumptions not being realized, causing a non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
- new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and proceedings;
- costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
- various risks associated with our
Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts; and - failure to effectively manage environmental, social and governance (ESG) issues and related regulations, including climate change and sustainability.
All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.
2024-13
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SOURCE Olin Corporation
FAQ
When did Olin (OLN) lift its force majeure on chlor-alkali products?
What caused the disruption in Olin 's (OLN) Freeport, Texas operations?
Which Olin (OLN) assets remain under force majeure as of August 28, 2024?
What products has Olin (OLN) resumed production of after lifting the force majeure?
