Olin shares dip as Chemours plans new chlor-alkali plant

In early trading on Tuesday, shares of Olin (NYSE:OLN ) Corporation experienced a 4% decline following an announcement by The Chemours Company (NYSE:CC ). Chemours revealed plans for the PCC Group to construct and manage a chlor-alkali production facility on the site of its titanium dioxide (TiO2) plant located in DeLisle, Mississippi. The agreement for chlorine supply between PCC and Chemours is contingent on certain standard conditions being met beforehand.

The forthcoming facility is expected to incorporate leading-edge technology aimed at optimizing energy efficiency and is projected to have an annual nameplate capacity of 340,000 metric tons upon becoming operational. In addition to chlorine, the plant will produce caustic soda as a co-product, which PCC intends to sell to key partners and on the open market.

The construction phase for the chlor-alkali plant is scheduled to commence in early 2026, and the facility is anticipated to be fully operational by 2028.

An analyst from Keybanc has indicated that the establishment of the new Chemours facility could have negative implications for Olin, a company that also operates within the chemical industry. The introduction of this new plant is likely to introduce additional competition within the market for chlor-alkali products.

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Source: Investing.com