Olin Corporation has announced that it will be closing its Cumene facility in the Netherlands and discontinuing solid epoxy resin production in South Korea and Brazil. The company expects to incur approximately $57 million in restructuring charges, with $15 million of that being non-cash asset impairment charges. Olin's decision is driven by weak global epoxy demand and excess supply availability. The company aims to improve its epoxy business earnings and will continue to evaluate and implement further actions to optimize its epoxy portfolio.
CLAYTON, Mo. -- Olin Corporation (NYSE: OLN) announced today that it has made the decision to cease operations at its Cumene facility in Terneuzen, Netherlands and solid epoxy resin production at its facilities in Gumi, South Korea and Guaruja, Brazil. Olin's first quarter 2023 results are forecast to include approximately $57 million of restructuring charges associated with these plans of which approximately $15 million of these restructuring charges represent non-cash asset impairment charges. The cash component of these charges is expected to be paid over the next three years.
"This is another step to right-size our global Epoxy asset footprint to the most cost-effective asset base to support our strategic operating model," remarked Scott Sutton, Chairman, President, and Chief Executive Officer. "Our Epoxy business continues to experience weak global epoxy demand and excess supply availability. This action reinforces our commitment to lift our Epoxy business earnings to a more sustainable level. We will continue to evaluate and execute additional actions that right-size the business to achieve reinvestment economics across our Epoxy portfolio."