Olin Corporation

Olin Corporation
Company type	Public
Industry	Ammunition, Chemicals, Manufacturing
Predecessor	Equitable Powder Company, Mathieson Alkali Works
Founded	1892; 134 years ago
Founder	Franklin W. Olin
Headquarters	Clayton, Missouri, United States
Area served	North America (chlor-alkali plants), global (epoxy and vinyl operations)
Key people	Scott M. Sutton (CEO and president as of 2020), John E. Fischer (executive chairman as of 2020)
Products	Ammunition, chlorine, sodium hydroxide, vinyl compounds, epoxy resins, chlorinated organics, bleach, hydrochloric acid
Website	olin.com

Olin Corporation is a U.S.-based manufacturer known for its production of ammunition, chlorine, and sodium hydroxide. Established in 1892 by Franklin W. Olin through the founding of the Equitable Powder Company and Mathieson Alkali Works, the company has evolved into a significant force within the chemical and manufacturing sectors. It has encountered difficulties related to health risks stemming from chemical plant incidents.

Origins and growth (1890s-1900s)

Franklin Walter Olin founded the Equitable Powder Company in Niagara Falls, New York, initially providing explosives for coal mining and quarry operations. By 1898, the business had expanded to include cartridge manufacturing. Olin brought together several enterprises—including paper production, lead shot, explosive primers, cartridge brass, fiber wads, and a brass mill—forming the Western Cartridge Company. This consolidation placed Olin in competition with firms such as Remington Arms and Winchester Repeating Arms Company. Despite attempts by suppliers to block its progress, Olin achieved successful diversification.

The outbreak of World War I significantly increased demand for Olin’s ammunition products. In 1931, Western Cartridge acquired Winchester, leading to their 1935 merger as Winchester-Western. By 1944, these operations were unified under Olin Industries, Inc., which played a major role in wartime manufacturing at sites including the St. Louis Arsenal, Badger Army Ammunition Plant, and Lake City Army Ammunition Plant. During World War II, these facilities each employed approximately 17,000 workers, contributing to the rise of the Olin family among America’s wealthiest.

In 1952, Olin entered the chemical industry by launching a chlorine production plant in McIntosh, Alabama. The plant initially used a mercury-based process that later resulted in groundwater contamination problems, highlighting ongoing environmental and operational challenges tied to its chemical activities.

Acquisition of Mathieson Chemical

Following World War II, the Olins acquired Mathieson Chemical Corporation, which had been founded in 1892. Mathieson Alkali Works operated out of Saltville, Virginia, eventually acquiring Holston Salt and Plaster Corp. Saltville functioned as a company town focused on producing chlorine and caustic soda; however, environmental concerns emerged due to methylmercury pollution, leading to its designation as a Superfund site in 1982.

By 1952, Mathieson Chemical secured a controlling stake in pharmaceutical company E. R. Squibb and Sons (now part of Bristol-Myers Squibb). The corporation broadened its portfolio to include plastics, cellophane manufacturing, bauxite extraction, automotive products, powder-actuated tools, and residential construction materials. The Olin Ski Company produced camping and skiing equipment until 1988 when production was licensed to K2 Sports.

In 1954, Olin Industries merged with Mathieson Chemical to create Olin Mathieson Chemical Corporation, employing 35,000 people across 63 plants worldwide. The firm manufactured phenoxy herbicides and anti-crop chemicals under military contracts and produced electric batteries marketed for use in flashlights. John Olin retired in 1963; the following year brought new management with hardware backgrounds who took control of Winchester operations. They introduced cost-saving stamped metal components that ultimately damaged Winchester’s reputation for quality and weakened its market standing.

1924 "Muck Dam Failure"

Nearly three decades prior to acquiring Mathieson Chemical, a muck dam gave way, unleashing a 30-foot surge of water, mud, mercury, and alkali down the Holston River valley toward Palmertown, Saltville, Virginia. This catastrophe caused 19 fatalities and widespread destruction of property.

Corporate downsizing (1969-2010)

Following its rebranding as Olin Corporation in 1969, the company began divesting numerous acquired assets, resulting in an overall reduction except for a short period of expansion during the early 1980s. In 1978, Olin became the first American firm convicted for violating arms embargo laws after selling Winchester rifles to private dealers in South Africa. Winchester staff had assumed that export permissions were informally granted by the State Department.

With Winchester's business declining, Olin sold its firearms division to its employees in 1980 under the name US Repeating Arms Company, while retaining ownership of the Winchester trademark and licensing it to the new entity. Additionally, Olin divested its European Winchester ammunition operations and licensed the brand to GIAT in Versailles, France. In 1998, production of ball propellant was transferred to St. Marks Powder, a subsidiary of General Dynamics.

In 1999, Olin spun off its specialty chemicals segment into Arch Chemicals and concentrated on ammunition, brass products, and chlor-alkali manufacturing. The conflicts in Iraq and Afghanistan stimulated growth in its ammunition sector. Post-2004, manufacturing of Winchester products was relocated from East Alton to Oxford, Mississippi, initially focusing on rimfire cartridge production before expanding to loading and packaging.

By 2006, marketing rights for Winchester rifles and shotguns were licensed to Browning Arms Company via U.S. Repeating Arms, while Olin kept ownership of Winchester ammunition. In May 2007, Olin acquired Pioneer Co. Inc., a chlor-alkali manufacturer, for $414 million. Later that year, it sold its global brass division to Global Brass and Copper (associated with KPS Capital Partners) for $400 million. By 2010, all centerfire ammunition production had been consolidated at Oxford.

Beginning in 1978, the McIntosh chlorine plant used asbestos without sufficient safety protocols despite awareness of its dangers; OSHA inspections were frequently pre-announced allowing cleanup before inspections. The acquisition of Pioneer in 2007 positioned Olin as the third-largest chlorine producer in the U.S. In 2010, equipment failure at McIntosh caused a release of caustic soda; chlorine leaks have also occurred there with community concerns regarding incident communication.

Spinoffs and collaborations (2015-2022)

On March 27, 2015, Dow Chemical Company revealed plans to spin off its chlorine and epoxy businesses and merge them with Olin Corporation. Dow received roughly $5 billion from this transaction, including $2 billion in cash, while the expanded Olin generated about $7 billion in revenue. Joseph D. Rupp served as chairman and CEO of the enlarged company. Dow also agreed to supply ethylene to Olin. By October 2015, Olin had acquired Dow's U.S. Gulf Coast Chlor-Alkali and Vinyl operations, Global Chlorinated Organics and Epoxy units globally, plus full ownership of the Dow Mitsui Chlor-Alkali joint venture. John E. Fischer held the roles of president and CEO as of 2016.

In 2016, a chlorine leak at an Olin facility located on Dow property in Plaquemine prompted evacuation of the Dow plant. That same year, Olin laid off approximately 100 employees—about 80% of staff—at its Henderson, Nevada plant as it ceased chlorine and lye production to convert the site into a bleach manufacturing and chemical distribution center. The company also reduced chlorine output at other facilities in New York and Texas. In 2019, Olin announced plans to close two Texas plants by the end of 2020.

By 2020, activist investor Sachem Head Capital Management owned a 9.4% stake in Olin, which maintained its headquarters in Clayton, Missouri with a board consisting of twelve members. Scott M. Sutton took over as CEO and president that year while Fischer transitioned to executive chairman.

As of 2021, Olin continued environmental remediation efforts at its Chemical Superfund Site acquired in 1980 under EPA supervision addressing contaminated soil and groundwater at East Alton. That year also saw Olin shut down half of its diaphragm-grade chlor alkali capacity at its McIntosh facility in Alabama.

In 2022, Olin partnered with Plug Power Inc. to establish a joint venture aimed at producing fifteen tons per day of "green" hydrogen at a Louisiana plant scheduled to commence operations in 2023. The company operated seven chlorine and caustic soda plants across North America. The former Olin headquarters building in East Alton was demolished after being sold to the Wieland Group, ending its history as an ammunition manufacturing site that once employed around 1,800 workers.

Products and divisions

As of 2022, Olin Corporation's operations were organized into three main segments: Chlor-Alkali Products and Vinyls, Epoxy (including materials and precursors), and Winchester (firearms and ammunition). The company manufactures chemicals such as chlorine, caustic soda, and hydrogen through the electrolysis of salt. Its range of chemical products also encompasses vinyl compounds, epoxy resins, chlorinated organic substances, bleach, and hydrochloric acid.

External links

Olin Corporation official website
Olin Brass (archived March 15, 2006)
Olin Chlor-Alkali Products