Winchester’s Centerfire Operations to Relocate to Oxford, Mississippi

Company Makes Decision Following Union Members’ Rejection of Proposal That Would Have Kept Operations in East Alton
EAST ALTON, IL–(Marketwire – November 3, 2010) – Olin Corporation (NYSE: OLN) announced today that its Winchester Centerfire Operations and approximately 1,000 jobs will be relocated to Oxford, Mississippi. The company’s decision follows two failed ratification votes by members of the International Association of Machinists and Aerospace Workers, in which employees twice rejected a union proposal that would have allowed Centerfire Operations to remain in East Alton. The company informed the unions in August that it was considering relocating operations to Oxford to enhance the competitiveness of its operations. The company engaged in discussions with union leaders over the past two months.
“Our focus always has been on ensuring that we continue producing high-quality products for our customers in an increasingly competitive marketplace,” said Joseph D. Rupp, Chairman, President and Chief Executive Officer of Olin Corporation. “While I am disappointed that employees represented by the International Association of Machinists (IAM) chose to reject a proposal that would have allowed us to remain competitive in East Alton, we look forward to expanding our existing operations in Mississippi.
“Governor Haley Barbour and the State of Mississippi have stepped forward with significant incentives that will allow Winchester to build a state-of-the-art facility in Oxford near our existing facility. This 500,000 square foot facility will house all of the Centerfire Operations in one building, providing Winchester with significant efficiencies. Combined with lower labor costs, those efficiencies will allow us to deliver quality products and compete effectively in this highly competitive industry,” Rupp continued.
“I do want to acknowledge the tremendous efforts made by union leadership and Illinois elected officials, including Governor Pat Quinn, Congressman Jerry Costello and Senator Dick Durbin to present Olin with a business investment package in Illinois that was extremely attractive,” Rupp said. “Unfortunately, without the labor costs savings and efficiencies that the IAM proposal would have provided, the state incentives alone would not have allowed us to remain competitive for the long-term at our current location in Illinois.”
The relocation is expected to take place over several years as Winchester ensures a smooth transition and continued, consistent and uninterrupted supply for its customers.
Olin Corporation is a manufacturer concentrated in two business segments: Chlor Alkali Products and Winchester. Chlor Alkali Products manufactures chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, potassium hydroxide and bleach products. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.
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the cyclical nature of our operating results, particularly declines in average selling prices in the chlor alkali industry and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
economic and industry downturns that result in diminished product demand and excess manufacturing capacity in any of our segments and that, in many cases, result in lower selling prices and profits;
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