Rail strike slows Dow shipments to W Canada

22 February 2007 22:26  [Source: ICIS news]

(Adds updates throughout)

HOUSTON (ICIS news)--Dow Chemical said on Thursday the ongoing strike in the Canadian rail system has curtailed deliveries of 50% liquid caustic soda in western Canada.

The company declared force majeure on its output but said the customers affected were virtually all in western Canada.

The stoppage in the Canadian rail system began on 10 February after members of the United Transportation Union, which represents conductors and yard-service workers, failed to reach an agreement to replace a three-year contract that expired on 31 December.

The Canadian government was seeking legislation to force an end to the strike.

Dow said it was working with Canadian National Railway Company and other service providers to address the situation.

The US caustic soda market has been tight since the fourth quarter of 2006 due to low chlorine production rates. Operational problems at several US plant left the market even tighter in recent weeks.

Dow is the leading US caustic soda producer.


By: William Lemos
+1 713 525 2653



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