Olin Suspending European Epoxy Resin Production
Olin to suspend European epoxy resin production
Olin (NYSE:OLN) -1.2% post-market after saying it is temporarily curtailing integrated epoxy production at its facility in Stade, Germany, citing a poor quality market and record high natural gas and electrical power costs in Europe.
Olin says it has seen weaker demand than expected for epoxy resin in Europe during Q4, exacerbated by the uncertainty following Russia’s invasion of Ukraine, and it is “impractical” to operate the epoxy resin facility at less than 50% operating rates.
The company now expects Q1 epoxy sales to decrease by $35M-$40M from Q4 2021, but it continues to expect Q1 total results in the Chemicals segment to be similar to Q4 2021 levels.
Olin shares gained 6% in Monday’s trading after KeyBanc issued an upgrade, seeing spiking global energy prices as favorable to the company in the short- and long-term.
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