Groundbreaking Ceremony for State-of-the-Art 6.8mm Ammunition Facility at the Lake City Army Ammunition Plant

Rhea-AI Summary

Olin (NYSE: OLN) announced that its Winchester division, in partnership with U.S. Army organizations, broke ground on a new 6.8mm Ammunition Facility at the Lake City Army Ammunition Plant (LCAAP). The 450,000-square-foot facility, part of the Next Generation Squad Weapons Program, will manufacture all components of 6.8mm ammunition and finished rounds for the U.S. military.

The groundbreaking ceremony was attended by over 100 special guests, including military officials and government representatives. The project will involve 90% of work supported by Kansas City region industries and nearly 50 local businesses in the construction phase, contributing to local economic growth and job creation.

The facility represents a significant advancement in the Army's modernization efforts and continues LCAAP's legacy in ammunition production, which dates back to 1941.

Positive

• Construction of new 450,000 sq ft advanced ammunition production facility
• 90% of work supported by Kansas City region industries
• Involvement of 50 local businesses in construction
• Expansion of manufacturing capabilities for military contracts

Negative

• None.

CLAYTON, Mo., Feb. 5, 2025 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced that its Winchester division, in collaboration with the U.S. Army's Joint Program Executive Office for Armaments and Ammunition (JPEO A&A) and Joint Munitions Command (JMC), celebrated the groundbreaking of the new 6.8mm Ammunition Facility at the Lake City Army Ammunition Plant (LCAAP). This facility is part of the Next Generation Squad Weapons (NGSW) Program and represents a significant step in the Army's modernization efforts.

Ken Lane, Olin President & CEO, noted during his remarks at the event, "Olin Winchester has a rich history in ammunition manufacturing excellence and support of the U.S. Military. We are proud to build on this American legacy through this opportunity to partner with the U.S. Army to construct this transformational facility and bring new capabilities to the Warfighter."

The ceremony featured remarks from Ken Lane, Maj. Gen. John T. Reim, Joint Program Executive Officer for Armaments and Ammunition, and Brett Flaugher, President of Winchester.  Liz Miranda, U.S. Army Material Command's (AMC) Executive Deputy to the Commanding General, Brigadier General Ronnie Anderson, Commander of the Joint Munitions Command (JMC), Staff from Congressman Sam Graves and Senator Eric Schmitt's office, and other federal, state, and local representatives were among the more than 100 special guests in attendance.

"This facility will represent a significant step forward in equipping our Soldiers with the advanced munitions they need to maintain overmatch on the battlefield," noted Maj. Gen. John T. Reim. "With 90% of the work supported by industries in the Kansas City region and nearly 50 local businesses involved in the construction, this project will strengthen the defense industrial base, create well-paying jobs, and drive economic growth in the local community. Lake City has been central to our nation's ammunition production since 1941, and this facility builds on that proud and historic legacy."

The 450,000 square foot advanced ammunition production facility will be capable of manufacturing all components of 6.8mm ammunition as well as finished rounds for the U.S. military, reinforcing the iconic legacy of LCAAP and its vital role in national defense.

COMPANY DESCRIPTION

Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, industrial cartridges, and clay targets.

Visit www.olin.com for more information on Olin Corporation and www.winchester.com to learn more about Winchester Ammunition.

FORWARD-LOOKING STATEMENTS

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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, 2023, and our Quarterly Reports on Form 10-Q and other reports furnished or filed with the SEC, include, but are not limited to, the following:

Business, Industry and Operational Risks

• 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;
• declines in average selling prices for our products 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;
• unsuccessful execution of our operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
• failure to identify, attract, develop, retain and motivate qualified employees throughout the organization and ability to manage executive officer and other key senior management transitions;
• failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
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• the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
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• availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
• the failure or an interruption, including cyber-attacks, of our information technology systems;
• our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
• risks associated with our international sales and operations, including economic, political or regulatory changes;
• our indebtedness and debt service obligations;
• weak industry conditions affecting our ability to comply with the financial maintenance covenants in our senior credit facility;
• adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
• the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
• our long-range plan assumptions not being realized, causing a non-cash impairment charge of long-lived assets;

Legal, Environmental and Regulatory Risks

• changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
• new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
• unexpected outcomes from legal or regulatory claims and proceedings;
• costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
• various risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts; and
• failure to effectively manage environmental, social and governance (ESG) issues and related regulations, including climate change and sustainability.

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.

2025-04

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SOURCE Olin Corporation

FAQ

What is the size of Olin's new 6.8mm ammunition facility at Lake City?

The new ammunition production facility will be 450,000 square feet in size.

How many local businesses are involved in OLN's Lake City ammunition facility construction?

Nearly 50 local businesses are involved in the construction of the new facility.

What percentage of work for OLN's new ammunition facility is supported by Kansas City region industries?

90% of the work is supported by industries in the Kansas City region.

What will be manufactured at Olin's new Lake City ammunition facility?

The facility will manufacture all components of 6.8mm ammunition and finished rounds for the U.S. military.

When did Lake City Army Ammunition Plant begin its ammunition production?

Lake City Army Ammunition Plant has been central to the nation's ammunition production since 1941.