OxyChem shuts chlor-alkali plant, converts another

18 April 2006 21:52  [Source: ICIS news]

HOUSTON (ICIS news)--Occidental Chemical (OxyChem) said on Tuesday it will close a chlor-alkali plant and convert another to produce potassium hydroxide.

OxyChem will close its mercury cell chlor-alkali operation in Muscle Shoals, Alabama sometime during 2008, after it converts a portion of its membrane cell chlor-alkali plant in Taft, Louisiana to produce potassium hydroxide. The company declined to release the capacity of both plants.

Chlor-alkali plants produce chlorine and an alkaline from the electrolysis of saltwater, which can be accomplished through processes that involve either diaphragm cells, membrane cells or mercury cells.

The company decided to close the Muscle Shoals plant after determining the plant was too small to justify the capital investment to convert it, said OxyChem president Chuck Anderson. A company spokesperson said the number of workers to be affected by the closure had yet to be determined.

“Rapidly escalating rail transportation costs, rail service reliability and increasing environmental expenses related to mercury were also factors in the decision,” Anderson said.

After the Muscle Shoals plant closes, OxyChem will no longer have any mercury cell chlor-alkali operations in the US. The plant closure will reduce OxyChem’s US chlor-alkali production capacity by 4% to 3.5m tons/year.

Dallas, Texas-based Occidental Chemical manufactures and markets basic chemicals, vinyls, performance chemicals, chlorine and caustic soda.

By: Joseph Lohan
+1 713 525 2653

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