Occidental Petroleum Corp.'s chemical subsidiary, OxyChem, has signed a letter of intent with Olin Corp. to combine their chlor-alkali and related businesses in a joint venture that Occidental says will have annual sales of $1.2 billion and save at least $60 million/year within 2 years as a result of increased efficiency. OxyChem would own 66% of the venture, and Olin 34%.
To be based in Dallas, the JV would have production capacities of 4 million tons/year of chlorine, 4.1 million tons/year of caustic soda, and 425,000 tons/year of potassium hydroxide. The venture will include some of OxyChem's chlor-alkali, ethylene dichloride, potassium hydroxide, and related co-product businesses and facilities; OxyChem's interest in an Armand Products partnership in Alabama and its Carbocloro joint venture in Brazil; Olin's chlor-alkali, sodium and potassium hypochlorite, and sodium hydrosulfite businesses and facilities in the US and Brazil; and Olin's interest in the Sunbelt joint venture with Geon Co.
Completion of the transaction is expected by the fourth quarter of 2000, subject to approval by each company's board of directors, completion of definitive agreements, and review by regulatory agencies.