DCN ARCHIVES

September 2, 2004

ERCO Worldwide to build plant in Chile

CALGARY

ERCO Worldwide has announced that an agreement has been reached with CMPC Celulosa S.A. (CMPC), a Division of Empresas CMPC S.A., to supply CMPC with sodium chlorate by constructing and operating a manufacturing plant adjacent to the CMPC Pacifico mill in Chile.

The agreement is subject to the finalization of certain commercial and operating conditions and to obtaining the environmental permits from the Chilean authorities.

A new company, ERCO Chile LLC, has been established to conduct ERCO’s Chilean operations. The capital cost of the world-scale manufacturing facility is expected to be in the $65 million range and would increase ERCO’s annual sodium chlorate capacity to 635,000 tonnes. The plant is scheduled to start up in mid-2006.

Paul Timmons, president of ERCO Worldwide, said: “The construction of this sodium chlorate manufacturing facility provides significant synergies to our offshore movements and is a significant step in ERCO’s growth strategy. We are excited with the opportunity to be an important supplier to CMPC.”

ERCO Worldwide is a leading supplier of chemicals and technology to the pulp and paper and water treatment industries.

—DCN staff

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