Chemtrade Announces Potential Impact from Impending U.S. Rail Strike
TORONTO, Ontario, September 12, 2022– Chemtrade Logistics Income Fund (TSX: CHE.UN) warned a possible labour strike at major U.S. freight railroads, including the preparations for such strike, could have a material negative impact on Chemtrade’s business results. Chemtrade, its suppliers, and customers rely on rail service for the movement of raw materials and finished goods. In preparation for the strike, many of the U.S. railroads have already started pre-emptively curtailing the shipment of certain goods, which will impact Chemtrade’s ability to ship chlorine, sulfur dioxide and hydrogen sulfide to customers starting this week. Further, these restrictions may impact Chemtrade’s ability to receive raw materials and ship finished goods across all business lines. If the rail workers go on strike, the exact impact on Chemtrade’s business will depend on the duration of the strike and the length of time for rail service to normalize. Due to the complexity of the rail network and the uncertainty of the duration of the strike, it is not possible to estimate the impact to Chemtrade’s business results at this time.
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 also the largest supplier of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, 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 information within the meaning of applicable securities laws, including the Securities Act (Ontario). Forward-looking information 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 information in this news release include statements respecting certain future expectations about: whether a rail strike will occur and the scope, scale and duration of the impact of such a strike on Chemtrade’s business and financial results. 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. 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.
Actual events and results can be substantially different from what is expected or implied by the forward-looking information as a result of risks, uncertainties and other factors, including without limitation, the factors detailed under the “Risk Factors” section of the Fund’s latest Annual Information Form and the “Risks and Uncertainties” sections of the Fund’s most recent Management’s Discussion and Analysis.
All forward-looking information in this release speaks as of the date of this press release. 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 the Fund with the securities regulatory authorities, available at www.sedar.com.
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For further information:
Chief Financial Officer
Tel: (416) 496-4177
Business Development Manager
Tel: (973) 515-1831