Methanex Corporation (TSX:MX) (NASDAQ:MEOH) (Methanex) and Mitsui
O.S.K. Lines, Ltd. (TSE:9104) (MOL) are pleased to announce that
the parties have concluded Key Commercial Terms for the purchase
and sale of an equity position in, and the establishment of a
strategic partnership involving, Methanex’s Waterfront Shipping
(WFS) subsidiary. With a fleet of approximately 800 vessels, MOL is
one of the world’s largest shipping companies. WFS is a global
marine transportation company and operates the world’s largest
methanol ocean tanker fleet.
MOL will acquire a 40 percent minority interest
in WFS for US$145 million. Methanex will retain the remaining 60
percent majority interest in WFS and continue to operate WFS as a
key element of its global supply chain capabilities. There will be
no change to Waterfront Shipping’s day-to-day operations due to
this transaction, and Paul Hexter will remain President. The
definitive agreements are subject to formal approval by MOL’s Board
of Directors. The closing is subject to regulatory approval and is
expected by the end of the year after all customary conditions are
met.
Through this transaction, Methanex, WFS and MOL
will establish a strategic partnership, which will enable Methanex
and WFS to benefit from MOL’s broad shipping experience to further
strengthen its already excellent shipping operations and
capabilities.
The strategic partnership strengthens a
relationship established over 30 years between Methanex, WFS and
MOL who, in 2016 in conjunction with other key partners, jointly
built the first ocean-going dual-fuel vessel capable of running on
methanol. With Methanex as the world-leading methanol producer, WFS
as the world’s leading methanol shipper, and MOL’s vast shipping
experience, the parties intend to advance the commercialization of
methanol, including renewable methanol, as a viable marine
fuel.
Methanol is a safe, proven, cost-competitive
marine fuel for the commercial shipping industry that can meet
current and future emissions regulations. Methanol as a marine fuel
can reduce sulphur oxides (SOx) by up to 99 percent, particulate
matter (PM) emissions by up to 95 percent, and nitrogen oxides
(NOx) by up to 80 percent compared to conventional marine fuels. As
a marine fuel, methanol also reduces CO2 emissions during
combustion by up to 15 percent. Methanol produced from renewable
sources can reduce CO2 emissions by up to 95 percent compared to
conventional marine fuels, providing a pathway to meet the
International Maritime Organization’s (IMO) decarbonization goals
without further investment or compatibility issues with the current
dual-fuel engine technology.
John Floren, President & CEO of Methanex,
said, “We are pleased to expand our relationship with MOL, a world
leading shipping company, which will enable Waterfront Shipping to
enhance its capabilities by leveraging MOL’s extensive global
shipping experience. We have worked with MOL for over 30 years on
methanol shipping since the era of Cape Horn Methanol Ltd., a
predecessor to Methanex’s Chile operations, and we are confident
that our new strategic relationship will help develop the market
for methanol as a lower emission marine fuel.”
Takeshi Hashimoto, President of MOL, said, “MOL
is pleased to partner and deepen our long-standing relationship
with Methanex, the leader in the methanol industry. This
transaction is consistent with MOL’s Environmental Vision 2.1.,
which regards our active involvement in methanol-fueled ships as
one of the measures for adopting clean alternative fuels.”
About Methanex Corporation
Methanex is a Vancouver-based, publicly traded
company and is the world's largest producer and supplier of
methanol to major international markets. Methanex shares are listed
for trading on the Toronto Stock Exchange in Canada under the
trading symbol "MX" and on the NASDAQ Global Market in the United
States under the trading symbol "MEOH”. Methanex can be visited
online at www.methanex.com.
About Waterfront Shipping
Waterfront Shipping, a subsidiary of Methanex
Corporation, is a global marine transportation company specializing
in the safe, responsible and reliable transport of bulk chemicals
and clean petroleum products to major international markets in
North America, Asia Pacific, Europe and Latin America. Waterfront
Shipping operates the world's largest methanol ocean tanker fleet
with its fleet comprising vessels from 3,000 to 50,000 deadweight
tonnes. Its fleet of approximately 30 modern, deep sea tankers
forms a seamless transportation network dedicated to keeping an
uninterrupted flow of methanol moving to storage terminals and
customers' plant sites around the world. For more information,
please visit www.wfs-cl.com.
About Mitsui O.S.K. Lines,
Ltd.
Mitsui O.S.K. Lines, Ltd., founded in 1884, is
one of the top shipping companies headquartered in Tokyo, Japan.
The company operates more than 800 vessels transporting resources,
energy, raw materials and finished products. For more information,
please visit www.mol.co.jp/en
FORWARD-LOOKING INFORMATION
WARNING
This news release contains forward-looking statements with
respect to us and our industry. These statements relate to future
events or our future performance. All statements other than
statements of historical fact are forward-looking statements.
Statements that include the words "expects," "will," or other
comparable terminology and similar statements of a future or
forward-looking nature identify forward-looking statements.
More particularly and without limitation, any statements
regarding the following are forward-looking statements:
- expected final ownership interest
in Waterfront Shipping to be acquired by MOL, and
- expected timing of closing of the
sale of the interest in Waterfront Shipping to MOL.
We believe that we have a reasonable basis for making such
forward-looking statements. The forward-looking statements in this
document are based on our experience, our perception of trends,
current conditions and expected future developments as well as
other factors. Certain material factors or assumptions were applied
in drawing the conclusions or making the forecasts or projections
that are included in these forward-looking statements, including,
without limitation, future expectations and assumptions concerning
the following:
- absence of a material negative
impact including from major natural disaster or from changes in
laws or regulations.
However, forward-looking statements, by their nature, involve
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking
statements. The risks and uncertainties include, without
limitation:
- changes in laws or
regulations,
- actions of governments and
governmental authorities,
- world-wide economic
conditions,
- the impacts of the COVID-19
pandemic, and
- other risks described in our 2020
Annual Management’s Discussion and Analysis and our First Quarter
2021 Management’s Discussion and Analysis.
Having in mind these and other factors, investors and other
readers are cautioned not to place undue reliance on
forward-looking statements. They are not a substitute for the
exercise of one’s own due diligence and judgment. The outcomes
implied by forward-looking statements may not occur and we do not
undertake to update forward-looking statements except as required
by applicable securities laws.
For further information, contact:
Methanex Investor InquiresKim CampbellDirector,
Investor RelationsMethanex Corporation+1-604-661-2600 or Toll Free:
+1-800-661-8851www.methanex.com
Methanex Media Inquiries:Jim
FitzpatrickDirector, Global CommunicationsMethanex
Corporation+604-661-2600 or Toll Free:
+1-800-661-8851publicaffairs@methanex.com
Mitsui O.S.K. Lines InquiresMedia Relations
TeamCorporate Communication DivisionMitsui O.S.K. Lines,
Ltd.+81-3-3587-7015mrtmo@molgroup.com
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