Chemtrade Logistics Provides Update on the Rezoning Application Related to the North Vancouver Chlor-Alkali Facility

TORONTO--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: CHE.UN; OTCQX®: CGIFF) (“Chemtrade” or the “Fund”) announced today that the District of North Vancouver (the “District”) Council has rejected Chemtrade’s rezoning application, which would have allowed significant safety upgrades and continued liquid chlorine production at its North Vancouver chlor-alkali facility (the “Facility”) beyond 2030.

The Facility is the largest producer of liquid chlorine in Canada, producing over 40 per cent of the country’s supply, and has been safely operating since 1957. The liquid chlorine produced by Chemtrade is used in the treatment of drinking water. This is significant as 96 per cent of Canadian municipalities use liquid chlorine, or a chlorine derivative, to treat their municipal water supplies.

Chemtrade intends to continue to engage with District staff and Council, elected officials at both the Provincial and Federal levels, local First Nations and the community to identify opportunities to support the strategic goals and priorities of government, such as securing Canadian production of critical products, and supporting industries key to Canada’s economic independence, that align with Chemtrade’s efforts to move forward with planned safety upgrades and secure long-term, continued operations. It should be noted that to date, engagement efforts have resulted in support from both provincial and federal governments, along with special interest groups, stakeholders and community members. Chemtrade is also investigating possible alternative avenues for recourse, including legal action.

“The decision of the seven-member Council of the District of North Vancouver is disappointing. As the largest producer of liquid chlorine for drinking water treatment in Canada, our closure could have significant impacts which would be felt across the country. Without chlorine production from our Facility, Canada could become reliant on foreign trading partners to secure additional production of chlorine, a product critical to the health and safety of millions,” said Scott Rook, President and CEO of Chemtrade. “Throughout the two and half year engagement with the District and the local community, we have received overwhelmingly positive feedback and support. We believe this decision is not in the best interest of District residents or Canadians. Our team is working with advisors and supporters to ensure we pursue all possible avenues to achieve our objective of continuing operations at the Facility and playing our part to ensure safe drinking water in Western Canada.”

About Chemtrade

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 and sodium hydrosulphite. Chemtrade is also one of the largest producers 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 value-added water solutions, as well as 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 to continue to engage with District staff and Council, elected officials at both the Provincial and Federal levels, local First Nations and the community to identify opportunities to support the strategic goals and priorities of government, such as securing Canadian production of critical products, and supporting industries key to Canada’s economic independence, that align with Chemtrade’s efforts to move forward with planned safety upgrades and secure long-term, continued operations; Chemtrade’s intention to investigate possible alternative avenues for recourse, including legal action; and Chemtrade’s intention to work with advisors and supporters to ensure it pursues all possible avenues to achieve our objective of continuing operations at the Facility.

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.