Nexen plans sodium chlorate expansions in Canada, Brazil

11 December 2002 18:13  [Source: ICIS news]

TORONTO (CNI)--Canada’s Nexen plans further expansions of its sodium chlorate capacities in Canada and Brazil next year, company officials disclosed Wednesday.

Nexen president and chief executive Charlie Fisher said in a conference call today: "We expect to initiate an expansion in Brandon [Manitoba] next year."

Fisher described the Brandon facility as "very low cost," saying "it’s ideally suited to service markets in Canada and the US very cost efficiently."

He said Nexen is "also looking to expand" its facilities in Brazil to meet the "direct growing needs of our large customers there."

Fischer said that Nexen has not yet made a final decision on the actual tonnage expansion the company envisages for either site. He said: "We are looking at balances against markets, but we haven’t made the final decision on the absolute size."

Nexen’s sodium chlorate facilities at Brandon have a capacity of 185 000 tonne/year, while capacity at its Aracruz, Brazil site is 60 000 tonne/year. Nexen earlier this year completed expansions at both sites.

Fisher also noted that the acquisition last month of Sterling Pulp Chemicals (SPC) by Canada’s Superior Propane wouldn’t have "any impact on us."

He said: "These [SPC] plants have been in place for some time. We really don’t see any change in our businesses as a result of that transaction."

SPC accounts for approximately 23% of North American sodium chlorate capacity and has five production sites in Canada and one in the US.

Nexen is based in Calgary, Alberta.

By: Stefan Baumgarten
+1 713 525 2653

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