TORONTO, March 26 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN)
announced today that it is investing US $2.5 million in Buenos Aires based
Meranol S.A.C.I., a leading Argentine producer of sulphuric acid and other
sulphur products. Meranol, including its predecessor companies have been in
the chemical business for approximately 120 years. Chemtrade's investment is
in the form of convertible notes which are convertible into 10% of the equity
of Meranol. Chemtrade also has options to increase its investment to up to 45%
of Meranol's common stock at a pre-determined price.
Meranol is a major producer of sulphuric acid and also produces aluminium
sulphate, iron oxide pigments and linear alkyl benzene sulphonic acid at its
integrated plant in Buenos Aires. Meranol is uniquely situated to capture the
increasing Argentine demand for sulphuric acid driven by the significant
growth of the fertilizer industry. This investment will allow Chemtrade and
Meranol to solidify their existing relationship and enable Chemtrade to
participate in a dynamic long-term market for sulphur and sulphuric acid.
Mark Davis, President and Chief Executive Officer of Chemtrade, said,
"Chemtrade's investment in Meranol is another step in the execution of our
growth strategy. Meranol extends the international scope of our business and
enhances our ability to participate in markets with expanding demand for our
products. Our investment permits Meranol to aggressively expand its business
to take advantage of the increasing demand for sulphuric acid from fertilizer
producers in Argentina, as well as the potential growth in the country's
mining and agriculture industries. Although our initial investment is modest,
the option to increase our equity interest to 45% puts us in a favourable
position to participate in the exciting prospects that we see for Meranol and
the region generally."
Dr J. Wertheim, Chairman of Meranol, said, "Having Chemtrade as a
strategic international partner provides us with tremendous synergistic
strength. This strength will enable us to pursue even greater participation in
the expanding sulphuric acid and sulphur market in Argentina and related
business development activities throughout the region."
Chemtrade operates a diversified business providing industrial chemicals
and services to customers in North America and around the world. Chemtrade is
one of the world's largest suppliers of 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", "may",
"will", "project", "should", "believe" and similar expressions are intended to
identify forward-looking statements.
- This news release contains forward-looking statements about the
objectives, strategies, financial condition, results of operations
and businesses of the Fund. These statements are "forward-looking" as
they are based on current expectations about our business and the
markets we operate in, and on various estimates and assumptions.
- Forward-looking statements in this news release describe our
expectations 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.
- Risks that could cause our actual results to differ materially from
our current expectations are discussed in the RISKS AND UNCERTAINTIES
section of our MD&A.
- 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.
For further information:
For further information: Mark Davis, President and CEO, Tel: (416)
496-4176; Rohit Bhardwaj, Vice-President, Finance and CFO, Tel: (416)