Expects Plant Back Online by October; Customer Supply Arrangements in Place
TORONTO, June 15 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) today provided an update on the situation at its Beaumont, Texas plant following a fire at the plant on May 15, 2010.
- Chemtrade currently expects the plant to be back online before the
end of October.
- Chemtrade has arrangements in place ensuring that its customers will
remain supplied with sulphuric acid and spent acid regeneration
services through the duration of the repairs.
- Chemtrade carries both property and business interruption insurance.
While the amounts of any recoveries under these insurance policies
cannot be determined until the investigation is complete and repairs
are made, Chemtrade expects to recover substantially all of its costs
and lost profits.
- The Fund believes that the incident at the Beaumont plant will not
impact its ability to sustain its monthly distributions.
Mark Davis, President and Chief Executive Officer of Chemtrade, said, "The investigation team now believes that the source of the fire was in a newly installed piece of equipment. From our customers' perspective, we have ensured that this incident will not affect them and that we will continue to provide the products and services they require." Mr. Davis added, "The interruption to Beaumont's production is disappointing since the plant had been operating very well since completing a significant capital re-investment program. We remain committed to the future of our Beaumont plant. We will repair the damage quickly, and continue to invest in the plant's reliability and efficiency."
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, sulphur, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of 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 the Fund, including but not limited to:
- the length of the shutdown of operations at the Beaumont facility and
the time to perform any repairs;
- the effect of the plant shutdown on customer supply;
- the amount and timing of any insurance recovery;
- the Fund's ability to sustain its monthly distributions; and
- continued investment in the Beaumont facility.
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: For further information: Mark Davis, President and CEO, Tel: (416) 496-4176; Rohit Bhardwaj, Vice-President, Finance and CFO, Tel: (416) 496-4177