TORONTO, April 10, 2025--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: CHE.UN) today provided an update regarding its chlor-alkali facility located in North Vancouver, British Columbia.
Chemtrade has entered into a non-binding letter of intent with the Vancouver Fraser Port Authority (the "Port of Vancouver") to extend its land lease until December 31, 2044.
The land lease covers a portion of the site and will be on similar terms to the existing lease, including a restriction on the receipt, manufacture, storage and distribution of liquid chlorine commencing July 1, 2030. The remaining portion of the site is owned by Chemtrade.
Chemtrade is preparing the requisite materials to submit, as soon as possible, an application for rezoning to the District of North Vancouver.
If the rezoning application is approved, Chemtrade will be able to continue producing liquid chlorine on the owned portion of the site and to implement several safety-enhancing capital improvements.
Scott Rook, President and CEO of Chemtrade said, "We have been in discussions with the Port of Vancouver and the District of North Vancouver to secure a pathway to continued operations of this strategic asset. We are pleased to provide a progress report on our North Vancouver facility, which plays such a critical role in supplying millions of Canadians with clean drinking water. Liquid chlorine is used to treat municipal drinking water, and we estimate that our plant provides over 70 per cent of the liquid chlorine available in Western Canada (BC and Alberta)."
Mr. Rook added, "Through our extensive engagement program, we have worked to ensure there is a broad understanding of our commitment to safety and responsible operation, as well as the risk to safe drinking water for millions of Canadians should we no longer be able to produce liquid chlorine. Our facility has been operating safely since 1957, and our planned enhancements, following rezoning approval, are focused on further increasing safety, reliability and reducing potential risk. As a result, we have received several letters of support for our continued operations, including one from the Province of British Columbia asking for the timely review and approval of our rezoning application. The non-binding letter of intent with the Port of Vancouver is an important step to enable us to continue to operate our chlor-alkali facility past 2030 and provide liquid chlorine to ensure clean drinking water for millions of Canadians."
As part of both Chemtrade’s ongoing engagement efforts, and as required through the formal rezoning process, there will be several engagement opportunities in the coming months, including facility tours, a public open house and virtual engagement. These will be shared through community updates, newsletters, local advertising, and the engagement website www.AskChemtrade.ca
The letter of intent with the Port of Vancouver is non-binding. There is no guarantee that the parties will enter into a new lease and the current lease expires on June 30, 2032. There is no guarantee that the rezoning application will be approved. Chemtrade would be unable to undertake its planned safety-enhancing capital improvements and may choose not to enter into a new lease with the Port of Vancouver if the rezoning application is not approved by the District of North Vancouver.
About Chemtrade
Chemtrade is a Canadian company, headquartered in Toronto, Ontario, which operates a diversified business providing industrial chemicals and services to customers across 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 and sodium hydrosulphite. Chemtrade is also a leading producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: Chemtrade’s intention and ability to enter a new lease with the Vancouver Fraser Port Authority and the possible expiry date of any such lease; its ability to obtain the approval of the District of North Vancouver to rezone Chemtrade’s property; Chemtrade’s ability to implement safety-enhancing capital improvements at its North Vancouver facility; Chemtrade’s ability to continue its plant operations and to provide liquid chlorine to Western Canada and ensure safe drinking water; and the ability of the planned plant enhancements to further improve plant safety.
Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the "RISK FACTORS" section of the Fund’s latest Annual Information Form and the "RISKS AND UNCERTAINTIES" section of the Fund’s most recent Management’s Discussion & Analysis.
Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedarplus.com.
