Olin becomes top producer in Chlor-Alkali Industry, says IHS

The recent merger of chlor-alkali and vinyl assets from The Dow Chemical Company and Olin Corporation is viewed as a ‘win-win’ deal for both partners, according to new analysis from IHS, the leading global source of critical information and insight.

According to the IHS Chemical report entitled Chemical Company Analysis: Olin (Post Dow Chlorine Products Business Merger), the estimated revenue potential of the new company is US$7.2 billion. The new company will constitute approximately 34 percent of North American chlorine capacity in 2015.

Pre-merger, IHS said, the Olin Corporation had revenues of US$2.2 billion, and was a leading North American producer of chlorine and caustic soda, with much of its distribution in the U.S. and Canada. Olin also owns Winchester, a leading North American producer of small-caliber ammunition, and a well-known brand with 148 years of history.

“The deal offers both producers access to a secure feedstock supply as well as low-cost manufacturing and cost synergy benefits,” said the report’s author, Mohit Sood, principal analyst at IHS Chemical. “The deal also catapulted Olin from primarily a regional player with a limited product slate in the sector to the industry’s top, integrated chlor-alkali producer, capable of both sustainable growth and of withstanding industry pressures. The company now has greater geographic and product diversification, which is critical to revenue growth.”