EX-99.2

Exhibit 99.2

Audited Financial Statements

SunBelt Chlor Alkali Partnership
Years Ended December 31, 2007 and 2006
With Report of Independent Registered Public Accounting Firm

SunBelt Chlor Alkali Partnership

Audited Financial Statements

Years Ended December 31, 2007 and 2006

Contents


Report of Independent Registered Public Accounting Firm			1

Audited Financial Statements

Balance Sheets			2
Income Statements			3
Statements of Partners’ Capital Deficit			4
Statements of Cash Flows			5
Notes to Financial Statements			6

Report of Independent Registered Public Accounting Firm

The Partners
SunBelt Chlor Alkali Partnership

We have audited the accompanying balance sheets of SunBelt Chlor Alkali Partnership as of December 31, 2007 and 2006, and the related statements of income, partners’ capital (deficit), and cash flows for each of the three years in the period ended December 31, 2007. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SunBelt Chlor Alkali Partnership at December 31, 2007 and 2006, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles.

/s/ERNST & YOUNG LLP

Cleveland, Ohio
February 20, 2008

SunBelt Chlor Alkali Partnership

Balance Sheets


	December 31
	2007		2006

Assets
Current assets:
Cash	$	1,000	$	1,000
Receivable from Oxy Vinyls, LP		6,026,774		7,732,638
Receivables from partners		18,807,135		14,303,282
Less allowance for doubtful accounts		—		—
Inventories		1,813,647		1,607,134
Prepaid expenses and other current assets		1,133,302		1,460,770

Total current assets		27,781,858		25,104,824

Property, plant and equipment, net		108,811,756		112,783,125
Deferred financing costs, net		801,478		881,626

Total assets	$	137,395,092	$	138,769,575


Liabilities and partners’ capital (deficit)
Current liabilities:
Amounts payable to partners	$	8,837,007	$	9,933,013
Current portion of long-term debt		12,187,500		12,187,500

Total current liabilities		21,024,507		22,120,513
Long-term debt		109,687,500		121,875,000
Partners’ capital (deficit)		6,683,085		(5,225,938	)

Total liabilities and partners’ capital (deficit)	$	137,395,092	$	138,769,575

See accompanying notes.

SunBelt Chlor Alkali Partnership

Income Statements


	Year Ended December 31
	2007			2006			2005

Revenues	$	180,555,764		$	186,742,652		$	166,967,651

Operating costs and expenses
Cost of sales		62,255,321			56,316,784			48,699,088
Depreciation and amortization		14,866,744			14,554,150			14,347,268
Administrative and general expenses		12,160,372			11,591,056			11,694,524

		89,282,437			82,461,990			74,740,880

Operating income		91,273,327			104,280,662			92,226,771

Interest expense		(9,692,719	)		(10,573,875	)		(11,455,031	)
Interest income		802,271			853,823			537,421

Income before taxes		82,382,879			94,560,610			81,309,161
State income tax expense		(376,271	)		—			—

Net income (loss)	$	82,006,608		$	94,560,610		$	81,309,161

See accompanying notes.

SunBelt Chlor Alkali Partnership

Statements of Partners’ Capital (Deficit)


	Partners
	Olin			1997
	SunBelt Inc.			Venture, Inc.			Total

Balance at December 31, 2004	$	(9,925,548	)	$	(9,925,548	)	$	(19,851,096	)
Cash distributions to partners		(33,020,033	)		(33,020,033	)		(66,040,066	)
Net Income		40,654,581			40,654,581			81,309,161

Balance at December 31, 2005		(2,291,000	)		(2,291,000	)		(4,582,000	)
Cash distributions to partners		(47,602,274	)		(47,602,274	)		(95,204,548	)
Net Income		47,280,305			47,280,305			94,560,610

Balance at December 31, 2006		(2,612,969	)		(2,612,969	)		(5,225,938	)
Cash distributions to partners		(35,048,793	)		(35,048,793	)		(70,097,585	)
Net Income		41,003,304			41,003,304			82,006,608

Balance at December 31, 2007	$	3,341,542		$	3,341,542		$	6,683,085

See accompanying notes.

SunBelt Chlor Alkali Partnership

Statements of Cash Flows


	Period Ended December 31
	2007			2006			2005

Operating activities
Net income	$	82,006,608		$	94,560,610		$	81,309,161
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		14,786,596			14,474,002			14,267,120
Bad debt expense					—
Amortization		80,148			80,148			80,148
Loss on disposal of assets		118,249			282,063			164,435
Accretion of discount		—			(328,493	)		—
Changes in assets and liabilities:
Receivables from Oxy Vinyls		1,705,864			(717,183	)		245,961
Receivables from partners		(4,503,853	)		3,633,362			(9,507,354	)
Inventories		(206,513	)		462,762			41,122
Amounts payable to partners		(1,096,006	)		2,715,700			1,405,976
Accrued interest on long-term debt		—			—			—
Prepaid expenses and other assets		327,468			(169,169	)		(175,224	)

Net cash provided by operating activities		93,218,561			114,993,802			87,831,345

Investing activities
Purchases of property, plant and equipment		(10,933,476	)		(8,043,515	)		(9,645,152	)
Proceeds on sale of property, plant and equipment		—			70,256			62,776
Purchases of short-term investments		—			(22,697,270	)		—
Proceeds from maturity of short-term investments		—			23,025,763			—

Net cash used by investing activities		(10,933,476	)		(7,644,766	)		(9,582,376	)

Financing activities
Cash distributions to partners		(70,097,585	)		(95,204,548	)		(66,040,065	)
Principal payments on long-term debt		(12,187,500	)		(12,187,500	)		(12,187,500	)

Net cash provided by financing activities		(82,285,085	)		(107,392,048	)		(78,227,565	)


Net increase (decrease) in cash		—			(43,013	)		21,404
Cash at beginning of year		1,000			44,013			22,609

Cash and cash equivalents at end of year	$	1,000		$	1,000		$	44,013

See accompanying notes.

SunBelt Chlor Alkali Partnership

Notes to Financial Statements

December 31, 2007 and 2006

1. Organization

SunBelt Chlor Alkali Partnership (the Partnership) was formed on August 23, 1996 under a Partnership Agreement, between 1997 Chlor Alkali Venture, Inc. and Olin SunBelt Inc. (the Partners). 1997 Chlor Alkali Venture, Inc. is a wholly owned subsidiary of PolyOne Corporation (formerly The Geon Company) and Olin SunBelt Inc. is a wholly owned subsidiary of the Olin Corporation. Each of the Partners has a 50% interest in the Partnership. The Partnership Agreement provides that the capital investment of the Partners will be maintained and the Partnership’s income or loss will be allocated to the Partners based on their ownership interest percentages.

The Partnership was formed for the purpose of construction and operation of a Chlor-Alkali facility. The facility, which is located in McIntosh, Alabama produces chlorine, caustic soda, and hydrogen.

2. Significant Accounting Policies

Cash and Cash Equivalent

The Partnership considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents held by the Partnership as of December 31, 2007 and 2006.

Inventories

Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) method.

Short-Term Investments

The Partnership invests in short-term investments with original maturities greater than three months. These types of securities are classified as held-to-maturity when the Partnership has the positive intent and ability to hold the securities to maturity. There were no short-term investments held by the Partnership as of December 31, 2007 and 2006.

SunBelt Chlor Alkali Partnership

Notes to Financial Statements (continued)

2. Significant Accounting Policies (continued)

Property, Plant, and Equipment and Depreciation

Property, plant, and equipment are carried at cost. Major renewals and betterments are capitalized. Maintenance and repair expenditures which do not improve or extend the life of the respective assets are expensed as incurred. Depreciation for all plant and equipment is computed using the straight-line method over their estimated useful lives. Depreciation expense is excluded from cost of goods sold and presented with amortization expense separately in the Income Statements. The ranges of estimated useful lives are as follows:


Land improvements		20 years
Buildings		20 years
Machinery and equipment		5-20 years

Long-lived assets are assessed for impairment when operating profits for the related business or a significant change in the use of an asset indicate that their carrying value may not be recoverable.

Deferred Financing Costs

The costs incurred by the Partnership in obtaining its long-term debt have been capitalized and are being amortized over the term of the debt using the effective interest method.

Financial Instruments

The carrying amount of long-term debt approximates its fair value. The fair value of the debt is estimated based on the present value of the underlying cash flow discounted at the Partnership’s estimated borrowing rate.

Revenue Recognition

The Partnership recognizes revenues at the point of passage of title which is based on shipping terms.

Shipping and Handling Costs

Shipping and handling costs are reflected in costs of sales.

SunBelt Chlor Alkali Partnership

Notes to Financial Statements (continued)

2. Significant Accounting Policies (continued)

Income Taxes

No provision is made for income taxes other than the Texas state gross margin tax which became effective January 1, 2007, as the Partnership’s results of operations are includable in the tax returns of the Partners. The Partnership paid no taxes in 2007.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

Risks and Uncertainties

Since the Partnership’s major products are commodities, significant changes in the prices of chemical products could have a significant impact on the results of operations for any particular period. The Partnership had one major chlorine customer, Oxy Vinyls LP, during the periods presented, which accounted for 38.3%, 39.9%, and 45.7% of total sales for the years ended December 31, 2007, 2006, and 2005, respectively.

3. Inventories

Inventories are comprised as follows:


	December 31
	2007		2006

Finished goods	$	657,326	$	244,500
Production parts		1,156,321		1,362,634

	$	1,813,647	$	1,607,134

SunBelt Chlor Alkali Partnership

Notes to Financial Statements (continued)

4. Property, Plant, and Equipment, net

Property, plant, and equipment, net are comprised as follows:


	December 31
	2007		2006

Land and land improvements	$	4,862,826	$	4,862,826
Building		3,869,389		3,869,389
Machinery and equipment		215,630,740		213,997,068
Construction in process		14,173,958		5,217,473

		238,536,913		227,946,756
Less allowance for depreciation		129,725,157		115,163,631

	$	108,811,756	$	112,783,125

5. Transactions With Affiliates

The Partnership has various management service agreements, dated August 23, 1996, with the Olin Corporation. These agreements, which include compensation for managing the facility, an asset utilization fee, a fleet fee, and a distribution fee, have terms from five to ten years with five year price adjustment renewals. Charges for these services were approximately $8,309,350 $7,815,034 and $7,551,933 for 2007, 2006, and 2005, respectively, and have been included within administrative and general expenses in the income statements. The Partnership’s cash policy was changed during 2003 to not make distributions to the Partners until the cash balance was sufficient to cover both the debt principal payments and the interest expense for the year. Contributions from the Partners were discontinued with this policy change and the manufacturing costs were paid from Partnership receipts. The Partnership made distributions to its Partners totaling $70,097,585, $95,204,548, and $66,040,065 in 2007, 2006, and 2005, respectively.

In accordance with the Partnership Operating Agreement, the majority of chlorine produced by the Partnership is sold to Oxy Vinyls LP which was 24% owned by PolyOne Corporation until July 6, 2007. The remaining chlorine and all of the caustic soda produced by the Partnership is marketed and distributed by the Olin Corporation.

SunBelt Chlor Alkali Partnership

Notes to Financial Statements (continued)

6. Long-Term Debt

On December 23, 1997, the Partnership borrowed $195,000,000 in a private placement of debt. The debt is secured by the property, plant, equipment, and inventory of the Partnership. The term of the loan is 20 years at an interest rate of 7.23%. The first principal payment of $12,187,500 was paid on December 22, 2002, with equal annual payments due through December 22, 2017. Interest payments are payable semi-annually in arrears on June 22 and December 22 of each year. Interest payments totaled $9,692,719, $10,573,875, and $11,455,031 in 2007, 2006, and 2005, respectively. The debt is guaranteed by the Partners.

7. Leases

The Partnership has operating leases for certain property, machinery, and equipment. At December 31, 2007, future minimum lease payments under noncancelable operating leases are as follows:


2008	$	1,719,036
2009		1,688,076
2010		1,688,076
2011		1,688,076
2012		1,688,076
Thereafter		5,101,094

Total minimum future lease payments	$	13,572,434

Rent expense was $2,047,601, $2,150,485, and $722,695 for the years ended December 31, 2007, 2006, and 2005, respectively.

8. Commitments and Contingencies

The Partnership is subject to legal proceedings and claims that arise in the ordinary course of its business. Management evaluates each claim and provides for any potential loss when the loss is probable and reasonably estimable. In the opinion of management, the ultimate liability with respect to these actions will not materially affect the financial condition, results of operations or cash flows of the Partnership.