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Enter Symbol
or Name
USA
CA



Chemtrade Logistics Income Fund
Symbol CHE
Shares Issued 92,596,006
Close 2017-11-20 C$ 19.57
Market Cap C$ 1,812,103,837
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Chemtrade declares force majeure at N. Vancouver plant

2017-11-20 21:09 ET - News Release

Mr. Mark Davis reports

CHEMTRADE LOGISTICS INCOME FUND ANNOUNCES DECLARATION OF FORCE MAJEURE AT NORTH VANCOUVER CHLOR-ALKALI PLANT

A recurrence of an operating issue has resulted in an unplanned interruption of production at Chemtrade Logistics Income Fund's North Vancouver chlor-alkali plant. The plant is an asset of Chemtrade Electrochem, formerly Canexus Corp. The issue was discovered on Nov. 12, 2017, and Chemtrade expects the plant to be off-line for approximately two weeks.

Prior to this issue, during 2017, the plant had been setting production records. This unscheduled shutdown is the result of an issue known at the time the plant was acquired as part of the purchase of Canexus and is scheduled to be permanently fixed in April, 2018, during a planned turnaround. Once the plant is operational after the current shutdown, Chemtrade expects the plant to resume its preincident production run rates until the planned April shutdown.

The plant had experienced a similar problem in November, 2016, resulting in an unscheduled shutdown to temporarily fix the issue. Once Chemtrade assumed ownership of this plant, it determined the permanent fix required and ordered the necessary long-lead-time materials. These materials are scheduled to arrive in December and then must be prepared for installation in April, 2018.

As a result of the outage, Chemtrade has declared force majeure for the supply of caustic soda, chlorine and hydrochloric acid. Chemtrade estimates the EBITDA (earnings before interest, taxes, depreciation and amortization) impact of this incident will range between $7-million and $8-million, the majority of which will be realized in fourth quarter 2017.

About Chemtrade Logistics Income Fund

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, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, potassium chloride and zinc oxide. Additionally, Chemtrade provides industrial services such as processing byproducts and waste streams.

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