OxyChem to Close Niagara Falls Chlor Alkali Plant

OxyChem which is one of United States’ major producers of Chlor Alkali products including Chlorine, Caustic Soda, and Hydrochloric Acid has announced the closure of its manufacturing facility in Niagara Falls, New York. The proposed move marks an end to more than hundred years of chemical manufacturing at the location. 

The decision comes amid unfavourable regional market conditions with weakened demand and recent hikes in rail transportation costs. The plant was suffering from negative economic fundamentals for the past year. The closure is expected to take place in the end of November this year. 

The Niagara Falls plant produces Chlorine, Hydrochloric Acid, Sodium Hypochlorite, and Caustic Soda at the facility. 

The Global Chlor Alkali industry is valued at around USD 100 Billion with the US having a market share of around 21%. The industry is expected to grow at a healthy growth rate of 5.4%. There are various applications for the major Chlor Alkali products including Chlorine and Caustic Soda. 

The major applications for Chlorine are Ethylene Dichloride, Polyvinyl Chloride, Organic Chemicals, Inorganic Chemicals, Isocyanates, Chlorinated Intermediates, Propylene Oxide, Pulp and Paper, Water Treatment etc. 

Major applications for Caustic Soda include Alumina, Organic Chemicals, Food, Pulp and Paper, Soaps and Detergents, Textiles, Water Treatment etc. 

As per ChemAnalyst, “the proposed closure has resulted due to weakened regional demand and increased logistics costs but another reason for the closure might be the price rise which has resulted in the weakening of regional demand as the Chlor Alkali industry is experiencing price rise for the past year with the average price of USD 322.5 per tonne in 2020 which has risen to an average of USD 405 per tonne in 2021”