ERCO Worldwide Announces US$95 Million Expansion of Port Edwards Chloralkali Facility


    CALGARY, Aug. 8 /CNW/ - Superior Plus Income Fund (the "Fund") is pleased
to announce that ERCO Worldwide, a division of the Fund, will be converting
its Port Edwards chloralkali facility from mercury based technology to
membrane technology. The current mercury based plant would be projected to
close within the next 5 to 7 years and this conversion will extend the
facility life for an additional 25 to 30 years. The investment in the facility
conversion is estimated to be USD $95 million (including capitalized interest
and working capital of $8 million). Start-up of the new state-of-the-art
technology is projected for the last half of 2009, pending the completion of
the permitting process.
    The Port Edwards facility is the third largest producer of potassium
chloralkali products in North America and has a strong competitive position
with a track record of stable cash flow which will be further enhanced with
completion of the project. The project will commence immediately and can be
accommodated with minimal disruption to current operations. The project is
expected to be accretive to unitholders generating an estimated
USD $17.5 million in increased operating cash flow in its first full year of
operation utilizing current chlorine and caustic prices. Long term sustainable
earnings before interest, taxes, depreciation and amortization is forecasted
to average USD $26 million over the life of the facility. The project is
expected to provide the Fund with an after tax rate of return greater than
    In commenting on the investment, Grant Billing, Chairman and Chief
Executive Officer, stated, "We are extremely pleased to announce this
attractive investment which will further diversify our North American
specialty chemical business and provide incremental growth in distributable
cash flow for our Unitholders. Our strong balance sheet combined with the
proceeds from our DRIP equity program and our new $535 million syndicated debt
facility allows the Fund to capitalize on attractive investment growth
opportunities from all of our business units in the future."
    Paul Timmons, President of ERCO Worldwide, stated, "Membrane is a proven
technology and provides significant environmental benefits over the existing
mercury based technology. This conversion significantly extends facility life,
increases capacity of the facility by approximately 30%, reduces operating
costs through enhanced efficiency of electrical energy and maintains
flexibility in facility operations. The Port Edwards expansion allows ERCO
Worldwide to diversify its overall portfolio by increasing its product mix in
chloralkali and reducing its dependency on the North American sodium chlorate
    ERCO Worldwide is a founding member of the Canadian Chemical Producers'
Association (CCPA) and is a member of the American Chemistry Council (ACC).
Accordingly, ERCO is committed to the industry principles of Responsible Care,
including taking steps where possible to reduce environmental risk and respond
to community concerns. This project will eliminate the use of mercury on the
site and therefore address both issues simultaneously.

    About Superior Plus and the Fund
    Superior Plus Income Fund is a diversified business trust. The Fund holds
100% of Superior Plus LP, a limited partnership formed between Superior Plus
Inc., as general partner and the Fund as limited partner. Superior Plus is
focused on stability of distributions with value growth and has four Canadian
based operating divisions: Superior Propane is Canada's largest distributor of
propane, related products and services; ERCO Worldwide is a leading supplier
of chemicals and technology to the pulp and paper industries and a regional
Midwest supplier of chloralkali and potassium products; Winroc is the seventh
largest distributor of walls and ceilings construction products in North
America; and Superior Energy Management provides fixed-price natural gas and
electricity supply services in Ontario and natural gas in British Columbia and
    The Fund's trust units and convertible debentures trade on the Toronto
Stock Exchange as follows:

     Symbol     Security                     Issued and Outstanding
    SPF.un      Trust Units                    86.5 million
    SPF.db.a    8% Debentures, Series 2      $ 59.0 million principal amount
    SPF.db.b    5.75% Debentures, Series 1   $174.9 million principal amount
    SPF.db.c    5.85% Debentures, Series 1   $ 75.0 million principal amount

    Forward-Looking Statements
    Except for the historical and present factual information, certain
statements contained herein are forward-looking. Such forward-looking
statements are not guarantees of future performance and involve a number of
known and unknown risks and uncertainties which may cause the actual results
of the Superior Plus Income Fund (the "Fund") or its wholly owned partnership,
Superior Plus LP ("Superior") in future periods to differ materially from any
projections expressed or implied by such forward-looking statements and
therefore should not be unduly relied upon. Any forward-looking statements are
made as of the date hereof and neither the Fund nor Superior undertakes any
obligation to publicly update or revise such statements to reflect new
information, subsequent events or otherwise.

For further information:

For further information: about Superior Plus, please visit our website
at: or contact: Wayne Bingham, Executive Vice-President
and Chief Financial Officer, Tel: (403) 218-2951, Fax: (403) 218-2973, E-mail:; A. Scott Daniel, Vice-President, Treasurer and
Investor Relations, Tel: (403) 218-2953, Fax: (403) 218-2973, E-mail:, Toll Free: 1-866-490-PLUS (7587)

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