Enters into New Long Term Offtake Agreement
TORONTO, April 19 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN)
announced today that it will spend approximately $12 million to expand
its ultra pure sulphuric acid capacity and has entered into a
multi-year agreement with KMG Electronic Chemicals, Inc. which
guarantees a specified offtake.
Chemtrade is North America's largest producer of ultra pure and KMG is
the leading supplier of high purity process chemicals to the North
America semiconductor market. The expanded facility will increase
Chemtrade's system-wide ultra pure capacity by about 50%. Ultra pure is
a high purity form of sulphuric acid and is a critical component for
the expanding North American semiconductor industry. A
state-of-the-art plant, which will produce ultra pure with an extremely
low level of impurities, is being constructed at Chemtrade's Tulsa,
Oklahoma facility where ultra pure is already being produced.
The KMG agreement is consistent with Chemtrade's business model of risk
mitigating contracts. The agreement provides for minimum volume
commitments, and the new capacity provides the potential for further
upside if demand grows as expected.
"This is a great opportunity for Chemtrade," said Mark Davis, President
& Chief Executive Officer of Chemtrade. "Our ability to grow
organically by building new capacity for an existing product is
evidence of the value Chemtrade can create from its operational
excellence. A key to Chemtrade's success has always been our ability
to deliver value to our partners and we are excited to deepen our ties
with KMG, and through them, to the growing semiconductor industry in
About KMG Electronic Chemicals, Inc.
KMG Electronic Chemicals, Inc. is a wholly owned subsidiary of KMG
Chemicals, Inc. which, through its subsidiaries, produces and
distributes specialty chemicals to carefully focused markets. The
Company grows by acquiring and optimizing stable chemical product lines
and businesses with established production processes. Its current
operations are focused on the wood treatment, electronic, and
agricultural chemical markets. For more information, visit the
Company's web site at www.kmgchemicals.com.
Chemtrade operates a diversified business providing industrial chemicals
and services to customers in North America and around the world.
Chemtrade is one of North America's largest suppliers of sulphuric
acid, ultra pure sulphuric acid, liquid sulphur dioxide and sodium
hydrosulphite, and a leading processor of spent acid. Chemtrade is
also a leading regional supplier of sulphur, sodium chlorate,
phosphorous pentasulphide, and zinc oxide.
This news release contains certain statements which may constitute
"forward-looking" statements within the meaning of certain securities
laws, including the "safe harbour" provisions of the Securities Act (Ontario). The use of any of the words "anticipate", "continue",
estimate", "expect", "expected", "intend", "may", "will", "project",
"plan", "should", "believe" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements in this
news release describe the expectations of Chemtrade as of the date of
this news release. Our actual results could be materially different
from our expectations if known or unknown risks affect our business, or
if our estimates or assumptions turn out to be inaccurate. As a result,
we cannot guarantee that any forward-looking statement will
materialize. Forward-looking statements do not take into account the
effect that transactions or non-recurring items announced or occurring
after the statements are made may have on our business. We disclaim any
intention or obligation to update any forward-looking statement even if
new information becomes available, as a result of future events or for
any other reason.
This news release contains forward-looking statements about the
objectives, strategies, financial condition, results of operations and
businesses of Chemtrade, including, but not limited to,whether or not
demand for ultrapure acid shall grow and the quantum of any such
Further information can be found in the disclosure documents filed by
Chemtrade Logistics Income Fund with the securities regulatory
authorities, available at www.sedar.com.
SOURCE Chemtrade Logistics Income Fund
For further information:
| Mark Davis || Rohit Bhardwaj |
| President & CEO || Vice President, Finance & CFO |
| Tel: (416) 496-4176 || Tel: (416) 496-4177 |
| Website: www.chemtradelogistics.com |