Olin Corporation is a global American manufacturer and distributor of chemical products - namely chlorine, sodium hydroxide, and ammunition. Founded in 1892, it now employs over 6300 people in more than 20 countries.
You joined Olin almost one year ago, bringing experience from BASF and LyondellBasell. What motivated your decision to join Olin, and how does your strategic vision differ from its recent past?
I’ve been in the chemical industry for a long time, starting in university, although I initially thought I’d be a civil engineer building things. My entry into chemicals was due to the growth in building plants, particularly in Asia. Back in the late ‘80s, Olin was a supplier to the company I worked with, so I’ve known the company for decades. Olin’s rich history, including being a large small-caliber ammunition producer through Winchester, makes it a stalwart. It was hard to pass up when the opportunity to lead a family company with a 100 year legacy arose.
In mid-December, we launched our corporate strategy after 10 months of development. We introduced a new company purpose: being a reliable supplier of solutions to protect and enhance lives. Coming out of COVID, some perceived Olin as short-term focused, and we aimed to clarify our path forward for shareholders, customers, and employees. We’ve committed to optimizing our core businesses and emphasized being a reliable, safe, and innovative supplier. For example, during investor day, we detailed plans to optimize our portfolio, which includes unlocking growth in areas like vinyl and epoxy resins once the core business is fully optimized.
Olin operates three divisions, two of which are focussed on chemicals. Within these, where might consumers encounter Olin’s products in their daily lives?
We’re at the forefront of the chemical industry, starting with salt water. We produce chlorine, caustic, and hydrogen by breaking them into components. Caustic is crucial for aluminum and paper production, as well as various chemical and refining processes. Chlorine is a building block for materials like polyurethanes used in lightweighting and insulation, PVC used in construction, and paints through titanium dioxide.
While many think of chlorine as primarily for swimming pools, it’s also essential for water treatment. For example, we’re leaders in bleach production, which plays a significant role in this market. Additionally, epoxy resins, derived from chlorine, are critical for carbon composites used in cars, airplanes, and bulletproof vests.
Have you observed a substantial shift in industry trends post the Covid pandemic?
Yes, the industry experienced a roller coaster during COVID—from shutdowns due to supply chain issues to a rapid rebound where demand surged. Now, we’re back to a more normal cycle, with the economy and the chemical industry facing through earnings.
For instance, the chemical industry, a barometer of economic activity, has seen many companies hit low earnings levels relative to history. Companies, including Olin, are focusing on core operations rather than overextending, optimizing what we do best to navigate this challenging economic landscape.
What markets and products does Olin see as having the most growth potential going into 2025?
Due to increasing demand, water treatment remains a growth area, and we’re looking into building a bleach plant in Southern California to meet regional needs. PVC is another promising market, driven by housing construction in the U.S. and Latin America. For instance, the U.S. housing crisis has led to significant opportunities in vinyl piping for construction. Meanwhile, we’ve identified strong growth potential for PVC products in Latin America. Despite contrasting trends in Asia, where China faces an oversupply of housing, markets closer to home present significant growth opportunities.
PVC is a global market with export opportunities. While chlorine stays local due to its gaseous nature, downstream products like vinyls and epoxies are exported to South America, Europe, and India. These regions are key focus areas due to growing demand and competitive production costs in the U.S. For instance, we already have an epoxy plant in Brazil and export caustic and vinyl to South America. In Europe, where local production is costly, our competitive U.S. production gives us an edge. India, with its massive growth and lack of local production, presents opportunities for both exports and partnerships with established local players.
What do you perceive to be the greatest challenge for Olin’s operations, and how are you adapting accordingly?
First, regulations pose a significant challenge. For example, the EPA recently banned a small chemical used in furniture finishes, claiming manufacturers couldn’t control employee exposure. Based on the assumption that employees weren’t using protective equipment, this decision ignores OSHA standards and has unintended consequences, such as harming U.S. furniture refinishing businesses.
Second, geopolitical issues disrupt global markets, particularly China’s overinvestment in chemical production. China’s oversupply undermines local industries globally, leading to protectionist measures like tariffs in Brazil, Europe, and India. This dynamic is expected to persist and will require careful navigation.
You’ve had opportunities to engage with legislators in Washington, D.C. With the new administration in the U.S., what will you be advocating for?
We engage actively with each administration and expect to do the same with the Trump administration. While challenges will remain, the hope is for more constructive engagement and science-driven decision-making.
For instance, we advocate for balanced policies that protect stakeholders without resorting to blanket bans on essential chemicals. Time will tell, but this administration expects to work more collaboratively with the industry, basing decisions on objective science rather than emotion or agenda-driven motives.
