CHEMTRADE TO EXPAND ULTRA PURE ACID CAPACITY

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 North America."

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.

About Chemtrade
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 growth.

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

 


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