Olin Corp. will dissolve its Blue Water Alliance with Mitsui & Co., Ltd. by the end of 2025, ending a major partnership in ethylene dichloride (EDC) production and marketing. The move marks a significant shift in how Olin participates in the vinyls value chain, signaling tighter supply conditions and less spot-market flexibility for distributors.
Olin—one of the world’s largest producers of chlorine and EDC—said it will scale back its exposure to the volatile merchant EDC market and focus on longer-term, contract-based supply as part of a broader effort to exert more structural control over its chlorine derivatives portfolio.
For chemical and plastics distributors that depend on EDC as a key feedstock for Polyvinyl chloride (PVC), this strategy change could mean fewer opportunistic buying windows, more competition for contracted volumes, and greater pricing discipline from Olin. With reduced spot availability, distributors will need to secure long-term supply agreements and may face tighter margins if EDC prices are firm.
Deon Carter, president of Olin Chlor Alkali Products & Vinyls, said the exit will “broaden our chlorine derivatives optionality, reduce our spot exposure to the merchant EDC market, and grow our vinyls participation.” While the equity partnership will end, Olin and Mitsui plan to continue collaborating on select projects under a more flexible, non-equity framework.
Olin remains a major vertically integrated producer of chlorine, caustic soda, vinyls, epoxies, chlorinated organics, and related chemicals. Mitsui, a global trading, and investment conglomerate operating in more than 60 countries, had leveraged the joint venture to market Olin’s EDC worldwide.
Olin said BWA customers will see a seamless transition as it takes full control of the business. But the shift from a trading-focused JV to a producer-driven model underscores a broader tightening in EDC and vinyls supply. Distributors in construction, automotive, and packaging markets—where PVC demand is concentrated—will need to prepare for a more consolidated supply base, reduced spot-market liquidity, and potentially higher prices as Olin prioritizes stability and profitability over market share.
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