Urethane Blog
PCC Makes a Move
December 10, 2024
Olin shares sink as PCC plans new chlor-alkali production at Chemours plant
Dec. 10, 2024 3:31 PM ETOlin Corporation (OLN) StockWLK, CCBy: Carl Surran, SA News Editor
Olin (NYSE:OLN) -6.5% in Tuesday’s trading, poised to post its lowest close in more than three years, following news that PCC Group plans to build and operate a chlor-alkali production facility on the site of Chemours’ (CC) titanium dioxide plant in Mississippi, and that PCC and Chemours have entered into a chlorine supply agreement.
Construction is expected to begin in early 2026 with the plant becoming operational in 2028, when the plant should provide nameplate capacity of as much as 340K metric tons/year; caustic soda, the co-product, will be sold by PCC to partners and on the open market.
Keybanc’s Aleksey Yefremov called the news an “incremental negative for Olin and, to a lesser degree, Westlake Corp., as new capacity over time is likely to pressure the domestic merchant chlorine market,” according to Bloomberg.
The analyst said the timeline plan looks aggressive, estimating that “a project of this magnitude would take 6-7 years to permit and construct.”
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