Olin Enters Strategic Partnership with Braskem to Drive Vinyls Value Growth

Rhea-AI Summary

Olin (NYSE: OLN) announced a long-term ethylene dichloride (EDC) supply agreement with Braskem on Nov 11, 2025, aligning with Braskem's transformation of its chlor-alkali and vinyl assets in Brazil.

Olin said the deal advances its global vinyls strategy by enabling Olin to leverage a competitive EDC cost advantage in the Brazilian PVC market and to redirect EDC volumes following the dissolution of the Blue Water Alliance joint venture.

Positive

• Signed long-term EDC supply agreement with Braskem (Nov 11, 2025)
• Redirects EDC volumes following Blue Water Alliance dissolution
• Supports Olin's global vinyls strategy and Brazilian market expansion

Negative

• No financial terms or volumes disclosed for the Braskem agreement
• Forward-looking risks cited that may affect expected value creation

Insights

Chemical industry strategist

Long-term EDC supply deal with Braskem strengthens Olin's vinyls strategy by redirecting volumes and leveraging a cost advantage.

Olin executed a long-term agreement to supply ethylene dichloride (EDC) to Braskem, aligned with Braskem's transformation of its chlor-alkali and vinyl assets in Brazil. The company states it will redirect EDC volumes freed by dissolving the Blue Water Alliance joint venture toward this partnership, which the company frames as a step to advance its global vinyls strategy and capture value in the Brazilian PVC market.

The business mechanism is straightforward: secure steady downstream demand for EDC to monetize a stated cost advantage and strengthen structural, long-term offtake relationships. Key dependencies include the contractual volumes and delivery timing, operational execution of redirected supply, and any conditions tied to Braskem's asset transformation; these factors determine how quickly and fully value transfers to Olin.

Watch for concrete disclosures about contracted volumes, pricing structure, and logistics, plus any operational milestones tied to the Blue Water Alliance dissolution; those items will clarify near-term cash flow and strategic impact. The announcement is a strategically positive development based on the facts presented, contingent on successful contract execution and supply reallocation.

CLAYTON, Mo., Nov. 11, 2025 /PRNewswire/ -- Olin Corporation (NYSE: OLN), the leading global chlor alkali producer, today announced a strategic partnership with Braskem, one of the largest petrochemical companies in the Americas and the leading producer of polyvinyl chloride (PVC) in South America.

The companies have executed a long-term agreement for Olin's supply of ethylene dichloride (EDC), aligning with Braskem's transformation of its chlor-alkali and vinyl assets in Brazil. This agreement marks a significant advancement in Olin's global vinyls strategy, establishing a sustainable framework that enables Olin to strategically leverage its competitive EDC cost advantage in the growing Brazilian PVC market.

Olin's recent announcement to dissolve its Blue Water Alliance joint venture enables it to redirect a significant portion of its EDC toward higher-value, structural relationships, advancing its vinyls strategy in the attractive, high-growth Brazilian market.

"Olin's strategy for expanding our core businesses is advancing through deliberate initiatives designed to maximize value. This expanded relationship with Braskem reinforces our strategic objective of leveraging our global leadership in EDC to drive value creation," said Ken Lane, Olin President and CEO. "We are pleased to deepen our collaboration with Braskem and look forward to continued success together."

This announcement marks another step in Olin's growth strategy to leverage its integrated chlor alkali and vinyls portfolio to grow value through partnerships, disciplined capital allocation, and operational excellence.

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.

FORWARD-LOOKING STATEMENTS

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," "outlook," "project," "estimate," "forecast," "optimistic," "target," 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. 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, 2024, 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 control costs and inflation impacts or failure to achieve targeted cost reductions;
• our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
• availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
• the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
• exposure to physical risks associated with climate-related events or increased severity and frequency of severe weather events;
• the failure or an interruption, including cyber-attacks, of our information technology systems;
• risks associated with our international sales and operations, including economic, political or regulatory changes;
• 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;
• our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
• adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
• weak industry conditions affecting our ability to comply with the financial maintenance covenants in our senior credit facility;
• our indebtedness and debt service obligations;
• 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 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.

2025-18

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SOURCE Olin Corporation

FAQ

What did Olin (OLN) announce on November 11, 2025 regarding Braskem?

Olin announced a long-term EDC supply agreement with Braskem to support Braskem's vinyls transformation in Brazil.

How does the Olin–Braskem agreement affect Olin's vinyls strategy (OLN)?

Olin said the agreement enables it to leverage a competitive EDC cost advantage and advance its global vinyls strategy.

Will the Olin (OLN) deal with Braskem change EDC allocations after the Blue Water Alliance dissolution?

Yes; Olin said it can redirect a significant portion of EDC toward structural relationships like the Braskem agreement.

Does the press release disclose financial terms or volumes for Olin's (OLN) Braskem supply deal?

No; the announcement does not disclose any financial terms, prices, or contract volumes.

What risks did Olin (OLN) highlight that could affect the Braskem agreement's benefits?

Olin's forward-looking statements note general business, operational, regulatory, and market risks that could affect outcomes.