Olin to Cut Diaphragm-Grade Chlor Alkali Capacity at US Facility

Chemicals manufacturer and distributor Olin Corporation announced Wednesday that it will permanently cut 20% of its chlor alkali capacity at its location in Plaquemine, LA. The company will reduce production at the plant by 225,000 ECU tn by June 1 2021.

“This is the next step on our path to exit high-capital, low-return diaphragm ECUs and redirect Olin’s cash generation model toward our transformative Parlaying and Structural phases,” the firm’s chief executive officer, chairman and president said in a release. “Earlier this year we shut down 200,000 diaphragm ECU tons at our McIntosh, AL facility, and the previously announced shut down of 230,000 diaphragm ECU tons at our Freeport, TX facility will occur in the second quarter as well.”

The shutdowns are expected to be cash accretive for the company.

Powder & Bulk Solids reported that Olin is planning to reduce production for diaphragm-grade chlor alkali at its McIntosh, AL site in March.