CLAYTON, Mo., July 1, 2024 /PRNewswire/ -- Olin Corporation
(NYSE: OLN), as a member of the Ad Hoc Coalition of Epoxy Resin
Producers (Coalition), comprised of Olin, Westlake Corporation
(NYSE: WLK), and Spolchemie, announces that the European Commission
has initiated an anti-dumping proceeding concerning imports of
epoxy resins from China, the
Republic of Korea, Taiwan, and
Thailand. This notice of
initiation published today in the European Union (EU) Official
Journal results from a complaint lodged by the Coalition to
investigate the level of dumping practiced by Chinese, Korean,
Taiwanese, and Thai exporters on the EU market and whether dumped
imports from the four targeted countries have caused material
injury to the European epoxy resin industry.
The Complaint alleges that exporting producers in
the four targeted countries have injured the European epoxy resin
producers by selling their products on the EU market at unfairly
low prices that significantly undercut the prices of European
producers. If the anti-dumping investigation concludes that
injurious dumping practices from the four targeted countries have
taken place, the European Commission is entitled to impose
additional duties on imports of epoxy resins from the four targeted
countries to restore a level playing field in the EU.
The dumping margins alleged during the
investigation period and set in the complaint are as follows:
COUNTRY
|
DUMPING MARGINS
ALLEGED
|
China
|
140% - 170%
|
The Republic of
Korea
|
10% - 40%
|
Taiwan
|
20% - 40%
|
Thailand
|
60% - 90%
|
The European producers in the Coalition manufacture epoxy
resins, an essential component for which there are no practical
substitutes, for various customer applications including critical
industries such as Aerospace, Automotive, Defense, Electrical
Transmission, Semiconductors, and Wind Energy. The availability of
European epoxy production is critical to ensure the EU's supply
chain resiliency for the industries that deliver progress toward
the European Green Deal priorities.
"Although this issue is not unique to Epoxy, nor to the EU, the
significant volume of what we believe are unfairly dumped imports
of epoxy resin have a seriously negative impact on the EU,"
said Florian Kohl, President,
Olin Epoxy & International.
"Related unfair trade practices for the same products are also
under investigation in the United
States by the U.S. Department of Commerce and the U.S.
International Trade Commission."
If successful, this investigation will ensure that foreign epoxy
resin producers cannot continue to benefit from sending dumped
epoxy resins to the EU market and will restore the health of the EU
epoxy resin industry, improve the resilience and security of
domestic epoxy resin supply chains, enhance the jobs and
communities that rely on the epoxy resin industry, and strengthen
European economic security by preserving a critical EU
manufacturing sector. The entire EU industrial complex would
benefit from such an outcome.
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.
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 forward-looking statements
include, but are not limited to, statements regarding the Company's
intent to repurchase, from time to time, the Company's common
stock. 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, 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 strategic 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;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- 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;
- 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.
2024-08
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SOURCE OLIN CORPORATION