Long term Agreement with Customer, Bayer MaterialScience AG
TORONTO, Aug. 22 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN)
announced today that its wholly-owned international subsidiary, BCT Chemtrade
Corporation, has substantially enhanced its long term business relationship
with Bayer MaterialScience AG of Leverkusen, Germany. BCT Chemtrade and Bayer
have entered into a long term agreement for the storage of caustic soda at BCT
Chemtrade's Rotterdam Terminal, which will be expanded to handle increased
throughput. Charges include a fixed fee for the terminal services provided and
additional fees if the throughput exceeds the contracted amount.
Chemtrade has agreed to expand its existing terminal facility at a cost
of approximately EUR 3.5 million, increasing total storage capacity to 100,000
tonnes. In addition, Chemtrade has agreed to build an additional jetty for the
loading and unloading of seagoing vessels and barges, thereby improving its
ability to optimize the use of its facilities. The jetty expansion which is
expected to cost approximately EUR 2.9 million will be financed by the Port of
Rotterdam. Construction is expected to begin in the fall of 2007 and be
completed by June 2008.
Mark Davis, Chief Executive Officer of Chemtrade, said, "We are very
pleased with this new agreement. It demonstrates the excellent relationship
that exists between BCT and a key customer and our team's ability to work with
our customers to find value added solutions for both parties. Additionally,
this project, like our acquisition of the Olin SHS business in May, is clear
evidence of our ability to continually improve and strengthen our business.
The agreement with Bayer MaterialScience AG is consistent with our desired
business model of adding earnings that are not affected by changes in
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, Chief Executive Officer, Tel: (416)
496-4176; Rohit Bhardwaj, Vice President, Finance & CFO, Tel: (416) 496-4177