Chemtrade Logistics Income Fund 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 commodity pricing."
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.
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 commodity pricing."
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.