SOURCE: Olin Corporation

Olin Corporation

November 12, 2009 17:30 ET

Olin Launches Major Initiative to Ship Bleach by Rail

CLAYTON, MO--(Marketwire - November 12, 2009) - Olin Corporation (NYSE: OLN) announced today that its Chlor Alkali Products division, North America's largest producer of industrial bleach, expects to have in-service a fleet of 100 rail cars specifically designed to carry bleach to its customers by the end of this year. Olin's bleach rail car fleet is projected to total more than 300 rail cars by the end of 2010.

Olin has developed proprietary rail-car technology that enables it to deliver high quality bleach in a cost-effective manner over distances of more than 1,000 miles. One rail car can carry the equivalent of approximately four truckloads of bleach.

"This innovative rail-car technology will allow us to ship bleach more efficiently over longer distances," said John McIntosh, president of Olin Chlor Alkali Products. "This step will be good for our customers, our company and the environment."

During the third quarter of 2009, Olin used rail cars to deliver a growing portion of the more than 54 million gallons of bleach it sold. It expects that most of its bleach sales growth will be delivered using these new rail cars.

The company is creating a bleach distribution network in the eastern half of North America capable of shipping bleach by rail from as far north as its plant in Becancour, Quebec, Canada, to as far south as its plant in McIntosh, Alabama. Olin is well-positioned to deliver bleach by rail to densely populated areas such as New York, Philadelphia, Boston and other large population centers in the Northeast. Olin will also ship bleach from its plant in Henderson, Nevada, to customers in the western United States.

"We also intend to begin shipping low-salt, high-strength bleach using the same rail-car technology," said McIntosh. "This higher-strength material will provide us with an additional competitive advantage because we will be able to ship more active ingredient in each rail car.

"We have seen other manufacturers announce investments in what are commonly referred to as 'salt to bleach' plants. Our major bleach-manufacturing plants employ the same technology as salt to bleach plants, but our plants are much larger and enjoy better economies of scale. With our new shipping technology, our large plants can compete more effectively with these smaller plants. We plan to add bleach capacity in North America as needed to satisfy the growing demand for bleach."

Olin Corporation is a manufacturer concentrated in two business segments: Chlor Alkali Products and Winchester. Chlor Alkali Products manufactures chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, potassium hydroxide and bleach products. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

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This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.

We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "project," "estimate," "forecast," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Relative to the dividend, the payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our board of directors. In the future, our board of directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.

The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2008, include, but are not limited to, the following:

--  sensitivity to economic, business and market conditions in the United
    States and overseas, including economic instability or a downturn in the
    sectors served by us, such as ammunition, housing, vinyls, and pulp and
    paper, and the migration by United States customers to low-cost foreign
--  the cyclical nature of our operating results, particularly declines in
    average selling prices in the chlor alkali industry and the supply/demand
    balance for our products, including the impact of excess industry capacity
    or an imbalance in demand for our chlor alkali products;
--  economic and industry downturns that result in diminished product
    demand and excess manufacturing capacity in any of our segments and that,
    in many cases, result in lower selling prices and profits;
--  costs and other expenditures in excess of those projected for
    environmental investigation and remediation or other legal proceedings;
--  changes in legislation or government regulations or policies,
    including proposed legislation that would phase out the use of mercury in
    the manufacture of chlorine, caustic soda, and related products;
--  the effects of any declines in global equity markets on asset values
    and any declines in interest rates used to value the liabilities in our
    pension plan;
--  unexpected litigation outcomes;
--  new regulations or public policy changes regarding the transportation
    of hazardous chemicals and the security of chemical manufacturing
--  the occurrence of unexpected manufacturing interruptions and outages,
    including those occurring as a result of labor disruptions and production
--  higher-than-expected raw material and energy, transportation, and/or
    logistics costs;
--  an increase in our indebtedness or higher-than-expected interest
    rates, affecting our ability to generate sufficient cash flow for debt
--  continuing weak industry conditions could affect our ability to comply
    with the financial maintenance covenants in our senior revolving credit
    facility and our accounts receivable facility; and
--  adverse conditions in the credit and capital markets, limiting or
    preventing our ability to borrow or raise capital.

All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.


Contact Information

  • Investor Contact:
    Larry P. Kromidas
    (618) 258-3206
    Email: Email Contact

    Olin Corporation
    190 Carondelet Plaza
    Suite 1530
    Clayton, MO 63105-3443