Untitled Document



						We have outlined our business model which is designed to deliver stable and sustainable distributions, and reviewed our performance which confirms our early success. What I would like to talk about now is how we will aggressively seek opportunities to grow sales and earnings to increase distributions to unitholders.

						Our strategies for growth include expanding the group of producers to which we supply removal services, expanding the products and services we supply to our end-use customers, leveraging our core competencies in service and infrastructure, and accretive acquisitions. We believe there are opportunities to build our business and grow cash flow in all of these areas.

						For example, last November we announced that we had agreed to a 10 year contract to provide removal services for the Irving Oil refinery in Saint John, New Brunswick. Under the agreement, Chemtrade guarantees removal and sale of all excess sulphuric acid produced by the refinery's new regeneration unit. The contract is expected to generate revenue in excess of $30 million over its 10 year term, and it became effective with the start-up of the new facility.
	At the same time, we also extended our sulphur removal agreement with Irving for a further 10 years. The key point here is that it demonstrates our ability to grow the business. The Irving agreement also contains the features we want in our agreements with producers - it is long-term, 10 years; and it is a risk-sharing arrangement whereby we share changes in product sales prices and transportation costs with Irving. Another example is Inco, which announced last year that it will comply with the Ministry of Environment requirement to further reduce SO2 emissions at its Sudbury smelting operations by 2006. Chemtrade will market the increased output under our long-term exclusive agreement with Inco. Both the Irving and Inco opportunities will add incremental earnings and cash flow to Chemtrade without requiring a Chemtrade investment of capital. We continue seeking opportunities to grow our business and increase distributions.