Olin Corp. located a chemical plant on the Hiwassee River here in 1962 in part to supply the growing pulp and paper industry in the South, including the nearby Bowater plant.
Nearly a half century later, Olin still is shipping chemicals to Bowater. But the chemical plant, which ships its Chlor Alkali products throughout North America, also is drawing other businesses that use its chemicals to the Charleston, Tenn., area. Olin, which spun off its specialty chemicals to Arch Chemicals in 1999, sells to nearby Bowater, Arch and a hydrogen supplier known as United Hydrogen Group along with hundreds of customers throughout North America.
Within the next three years, Olin also expects to be a key supplier to Wacker Chemical Corp., the German-based solar panel maker that plans to build a $1.2 billion manufacturing plant on land once owned by Olin.
“The last couple of years have been very tough times for us with the economy that we’re in, but we’re proud that we’ve been able to remain competitive,” said Kent Corley, who relocated to Charleston to become the Olin plant manager three months ago. “We’ve been able to identify some target businesses and boosted our bleach business to help us along during this recession. We’re certainly encouraged about the prospect of supplying chemicals for Wacker.”
Olin is capitalizing on the growth in bleach and now is North America’s biggest bleach producer.
In 2008, Olin also lured the United Hydrogen Group to locate within its facility and buy some of the hydrogen produced in Olin’s chemical operations. United Hydrogen is planning to more than double its initial $3.5 million investment here to help liquefy hydrogen and broaden its sales market beyond the 300-mile radius possible with its gaseous hydrogen shipments.
“We want to position ourselves to be a supplier to the upcoming automotive market and to sell throughout the country,” said Vladimir Prerad, chief executive of United Hydrogen Group, which employs eight workers in Charleston.
Olin employs 460 workers in Bradley County, including 120 who work in the Chlor Alkali division headquarters in Cleveland, Tenn. That office oversees the seven plants that produce chlorine, bleach, caustic and other substances for industries ranging from pharmaceuticals to water purification.
Mr. Corley said Olin has invested more than $50 million over the past decade in its Charleston plant, which is next to the Arch Chemicals plant where several hundred other workers are employed.
BY THE NUMBERS* 320: Employees at Olin Charleston plant* 140: Employees at Olin Chlor Alkali division headquarters in Cleveland* $48 million: Payroll generated by Olin in Bradley County* 1,000: Acres of Olin property* 50: Acres used by Olin plant* $50 million: Investment at Olin plant in the past decade* $3 million: Planned expansion by United Hydrogen Group within the Olin facility in the next year* $1.2 billion: Planned investment in nearby Wacker Chemical plant to make solar panelsSource: Olin Corp.
Olin faces the prospect of an even costlier investment if Congress moves ahead with proposed legislation to phase out the mercury separation process used to produce the chemicals that Olin sells. Olin eventually could be forced to rebuild most of the plant if the process is outlawed, according to Dr. Leonard Scott, director of manufacturing technology for Olin.
In more than 100 cells within the plant, a mercury separation process now converts salt, water and electricity to produce caustic chemicals, chlorine and hydrogen that can be recombined to make bleach and hydrochloric acid. Changing the separation process would require building a whole new set of cells, Dr. Scott said.
Given adequate time, Dr. Scott said, such changes can be made.
“We’re proud to have been here for 48 years, and we hope to continue to be here much longer,” he said.
OLIN IN CHARLESTON
* Products: Chlorine, bleach, hydrogen, potassium hydroxide and caustic soda
* Applications: Water purification, pulp and paper, pharmaceuticals, batteries, fertilizers, chemical industries
* Charleston plant: Chemical production site on the Hiwassee River
* Cleveland division office: Chlor Alkali division headquarters overseeing seven North American plants
* Neighboring customers: Arch Chemical, Bowater, United Hydrogen and by 2013 Wacker Chemical, United Hydrogen
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