Michael Leithead: Fair enough. And then second, just when you look at your chemicals volumes overall, with the exception of the VCM impact, do you think the second quarter is the low point in your volumes? Or do you expect them to be stable or maybe lower in the back half?
Scott Sutton: Yes. I would say that for Olin, look, our volume challenge is effectively finishing here, right? We’ve taken it down enough to preserve values, run a leadership model. We’re prepared to capitalize on the run out. So we’ve taken volumes down further enough to achieve that objective. Even in our epoxy business in the third quarter, we do expect systems and resin volumes to grow some.
Michael Leithead: Got it. Thank you.
Scott Sutton: Sure.
Operator: Thank you. And the next question comes from Jeff Zekauskas with JPMorgan.
Jeff Zekauskas: Thanks very much. You’ve always spoken of negotiation of the Dow contract has a meaningful future benefit in 2025. Now it seems that Dow is going to take less chlorine and caustic because of what they’re doing in propylene oxide. Is it still a meaningful jump for Olin in 2025? Or is that no longer the case?
Scott Sutton: Yes. I would say it’s really a positive arrangement for Olin. And Jeff, I mean you’re right that one PO unit Dow has announced that they’re closing that. So that volume goes away. But other volumes at that same site remain, and the site in Louisiana becomes the site of focus for the bigger volumes.
Jeff Zekauskas: So we shouldn’t expect some meaningful contractual – some meaningful EBITDA benefit to you in 2025 because of the renegotiation of the contract. Is that correct?
Scott Sutton: No, I think it’s positive, Jeff.
Jeff Zekauskas: Okay. In terms of your chlorine prices, are you – there’s always a – there are always contract resets that Olin benefits from because pricing in the old days was so poor. Is the positive momentum in prices in chlorine, a function of the repricing of very old contracts? Or is it more an accurate picture of the current market today?
Scott Sutton: Well, I think a large part of the continual improvement in our average merchant chlorine pricing has to do with contracts maturing and being renegotiated. That’s not the only part of it. The part that’s on spot, we still continue to do well there. But the bigger part is the new contractual arrangements where we exit these remaining legacy deals.
Jeff Zekauskas: Is there much more to go? Or are you now pretty much caught up?
Scott Sutton: Well, we have a little bit more to go.
Jeff Zekauskas: Okay, great. Thank you so much.
Scott Sutton: Sure.
Operator: Thank you. And the next question comes from Duffy Fischer with Goldman Sachs.
Duffy Fischer: Yes. Good morning. Scott, I was hoping, can you just kind of summarize all the changes you’ve made to your epoxy footprint and what does that do to the upside coming out? I mean, how much capacity have we taken off when we get through this downturn, how much different is your footprint today?
Scott Sutton: Yes, I mean, we’ve made and are in the process of making quite a number of changes. Upstream, I’ll say that we exited a Cumene plant. We exited one of our BPA facilities. In the resin area, we reduced our capability both in Freeport, Texas and in strata [ph] and then at a few downstream plants, we reduced our capability in solids epoxy resin, and then we shut down a facility in Korea. So, yes, I mean, that has reduced our capability some. What I will say is that in epoxy, we had at least two of everything to begin with and sometimes three or four of everything. So we’ve gotten rid of that overhang. We’re much more efficient now, and it’s not going to take a massive amount of volume to put as closer to a higher capacity utilization, and we’re still working to get those costs out.
