Chemical plant ends production in Shoals

Notice was given two years ago that the day was coming when the Occidental Chemical Co. in Muscle Shoals would be closing.

The day has arrived.

A chemical company has been operating on the Wilson Dam Road site since 1954, but Occidental has completed the phasing out of its chlor-alkali operation in Muscle Shoals, a process that utilizes mercury to produce chlorine and other chemicals.

Melissa E. Schoeb, senior director of communications for Occidental Petroleum Corp., said the shutdown eliminates the company's chlor-alkali mercury cell production in the United States.

"This decision was made for a number of long-term economic and strategic business reasons," Schoeb said.

Company officials said Occidental converted its plant in Taft, La., to replace the potassium hydroxide produced in Muscle Shoals.

There were about 150 workers at the plant when the conversion plan was announced two years ago.

Occidental Corp. will continue to have a presence in Muscle Shoals through its Armand Products division. Schoeb said Armand Products is a joint venture between OxyChem and Church & Dwight Co.

Armand Products will continue operating its potassium carbonate manufacturing facility at the Muscle Shoals site for "as long as it continues to be profitable."

About 30 workers will be involved in the operation that will continue.

"When the announcement was made two years ago, we were disappointed, but the process in which they were manufacturing the product has changed and we understand that," said Muscle Shoals Mayor David Bradford. "We're just glad they will continue to operate the Armand Products plant."

Local officials said the company, with production concluded, is in the process of decommissioning the plant. That process will include demolition of some buildings at the site as well as cleanup.

"Because we announced plans to close the chlor-alkali plant two years ago, employees have had many months to prepare," Schoeb said. "The workforce has done an outstanding job of maintaining the plant as a leader in environmental and safety performance and has worked diligently to extend its operating life."

Employees not kept in the Armond operation will receive a severance package, company officials said.

Bradford said when the plant was owned and operated by Diamond Shamrock, from 1954 until 1986 when Occidental purchased it, there were nearly 300 people working at the plant.

Bradford said he has heard there will be about 50 jobs at Armand Products.

"Whether it's 30 or 50 jobs, that's 30 or 50 jobs we're maintaining here," the mayor said. "They're good paying jobs and it's my hope that the company can find use for the space (left by the closure) that will benefit the community once again."

While in production, company officials said the Occidental plant had the capacity to annually produce 154,000 tons of chlorine and 242,000 tons of potassium hydroxide.

Company officials said the chemicals produced at the plant were used in the manufacturing of soap and detergent, plastics, crop protection materials and pharmaceutical products.

Bradford said Occidental has been a good corporate neighbor and is sure they will continue to be.

"We've worked with them on various issues in the past and always had a good relationship," Bradford said.

"And a lot of their employees have been involved in the community on a number of issues. The company has been and I'm sure will continue to be a part of our community."

Tom Smith can be reached at 740-5757 or tom.smith@TimesDaily.com.