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Olin Expands Integrated Network With Strategic Braskem Deal

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Key Takeaways

  • Olin will supply Braskem with EDC to support its chlor-alkali and vinyl operations in Brazil.
  • Dissolving the Blue Water Alliance lets Olin shift more EDC high-value relationships.
  • The Braskem partnership aligns with Olin's push for disciplined growth and stronger value-accretive ties.

Olin Corporation (OLN - Free Report) recently entered into a long-term strategic partnership with Braskem, marking a significant step in its efforts to expand value across the global vinyls chain. Per this agreement, Olin will supply Braskem with ethylene dichloride (EDC), a key material in the polyvinyl chloride (PVC) production process. The partnership is designed to support Braskem’s transformation of its chlor-alkali and vinyl operations in Brazil, an important market where the company is focused on strengthening its competitiveness and operational performance. 

This collaboration aligns directly with its strategy to use its cost-advantaged EDC platform to create more sustained value in regions that represent strong, long-term growth opportunities. The company views the Brazilian PVC market as especially attractive and believes that partnering with a major industry participant like Braskem enhances its ability to capture that value. 

Olin Repositions EDC for Strategic Gains

The company highlighted that the dissolution of its Blue Water Alliance joint venture played a key role in paving the way for deeper structural partnerships. By ending the venture, Olin can now redirect a larger portion of its EDC output into high-value relationships that offer greater strategic and financial stability. This shift reflects the company’s broader effort to reshape its portfolio around more durable, value-accretive customer relationships. 

The company emphasized that the partnership with Braskem supports the company’s ongoing focus on disciplined growth within its core chlor-alkali and vinyls business. Leveraging Olin’s leadership position in EDC production, along with forging strategic alliances, is central to driving improved returns and supporting the company’s long-term value-creation objectives. The agreement represents another step in strengthening Olin’s competitiveness and enhancing the structural advantages of its global integrated network. 

Shares of OLN are down 40.5% year to date compared with the industry’s 27.3% decline. 

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OLN’s Zacks Rank & Key Picks

OLN currently carries a Zacks Rank of #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are AngloGold Ashanti Plc. (AU - Free Report) , First Majestic Silver Corp. (AG - Free Report)  and Coeur Mining, Inc. (CDE - Free Report) . AU sports a Zacks Rank of #1 (Strong Buy) while AG and CDE carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AU’s current-year earnings is pegged at $5.80 per share, indicating a 162.44% year-over-year increase. Shares of AU are up 219.8% year to date. 

The Zacks Consensus Estimate for AG’s current-year earnings is pegged at 25 cents per share, indicating a 278% year-over-year increase. The consensus estimate has been trending higher over the past 60 days. 

The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 91 cents per share, indicating a 406% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed two, with an average surprise of 106.6%. 


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