Olin Corporation, the parent of Winchester Ammunition, will cease operations at its Cumene facility in Terneuzen, Netherlands and the solid epoxy resin production at its facilities in Gumi, South Korea and Guaruja, Brazil.
Olin’s first quarter 2023 results are forecasted to include approximately $57 million of restructuring charges associated with the closings, of which roughly $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 lifting 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.”
Photo courtesy Olin Corp.
