South American Giants Collaborate: Olin and Braskem Join Forces to Advance EDC Production

Core Points

- Collaborate to advance Olin's global vinyl products strategy by redirecting dichloroethane resources towards high-value partnerships in Brazil.

The agreement strengthens both parties' competitive position in the growing PVC market in South America.

The announcement of this cooperation comes as Olin's third-quarter performance was strong, mainly due to its chlor-alkali products and vinyl business segments.

According to Zhuangsu Shijie, Olin Corp. and Brazil's Braskem Group have recently announced a partnership to expand the production scale of dichloroethane (EDC) in the Brazilian polyvinyl chloride (PVC) market.

Both parties have signed a long-term agreement for Olin to supply 1,2-Dichloroethane, which is highly aligned with Braskem's transformation plan for its chlor-alkali and vinyl assets in Brazil.

Olin Corporation is a global leading chlor-alkali producer, while Braskem is one of the largest petrochemical companies in the Americas and a leading PVC producer in South America.

Both parties stated that the agreement marks an important advancement in Orlin's global vinyl products strategy, establishing a sustainable cooperation framework that enables Orlin to strategically leverage its cost competitiveness in the dichloroethane sector within the rapidly growing PVC market in Brazil.

Strategic Restructuring and Market Focus

Olin recently announced the dissolution of its Blue Water Alliance joint venture, a move that allows it to redirect significant dichloroethane capacity toward high-value strategic partnerships, thereby advancing its vinyl products strategy in the highly attractive and rapidly growing Brazilian market.

"The enhanced collaboration with Braskem strengthens our strategic goal of creating value by leveraging our global leadership position in the ethylene dichloride sector," said Ken Lane, President and CEO of Olin. "We are excited to deepen our partnership with Braskem and look forward to continued success together."

Achieving growth through strategic partnerships.

This collaboration is another important initiative in Olin's growth strategy - Olin plans to create value through its integrated chlor-alkali and vinyl product portfolio by leveraging partnerships, prudent capital allocation, and operational excellence. Lane emphasized that the company is advancing its core business expansion strategy through a series of special initiatives aimed at maximizing value.

The collaboration enables both parties to seize the growth opportunities in the South American PVC market while strengthening their positions in the global petrochemical industry. For Olin, the agreement provides a strategic outlet for its ethylene dichloride production capacity; for Braskem, it secures a reliable and cost-competitive supply source to support its ongoing asset transformation efforts.

This collaboration highlights the importance of strategic alliances in the petrochemical industry, as companies in key growth markets are increasingly seeking partnerships that can deliver mutual benefits and sustainable competitive advantages.

Financial Dynamics

In the recent third-quarter financial report released by Olin, Lane stated that the company achieved better-than-expected earnings performance, primarily due to strong contributions from the chlor-alkali products and vinyl business segments.

"The fourth quarter is typically the seasonally weakest quarter for our business," he said. "Therefore, we expect Orlin's adjusted EBITDA for the fourth quarter of 2025 to be between $110 million and $130 million, which includes a $40 million loss from planned inventory reductions, a move that aligns with our 'value-first' business philosophy."

Lane added that the company will continue to focus on the strategic priorities of "optimizing core business": operating safely and reliably, advancing the Beyond250 structural cost reduction plan, and maximizing cash flow generation.

"Through a series of initiatives we are undertaking, we expect the net debt level at the end of this year to be comparable to that at the end of 2024," he stated. "In the face of the longest industry downturn in history, the Olin team continues to demonstrate the company's resilience and strength."

Olin was founded in 1892 and, after years of development and expansion, has formed three major business segments: Olin Chlor Alkali Products and Vinyls, Olin Epoxy, and Winchester Ammunition. The company has more than 7,700 employees in over 15 countries worldwide, with customers in nearly 100 countries.