Stella-Jones Confirms it Will be Ready for Penta Supply Change in 2021
November 18 2019 - 3:57PM
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today
issued a statement in response to Cabot Microelectronics
Corporation’s news release of yesterday’s date announcing their
intention to cease future investment in the wood treatment business
and not to construct a new pentachlorophenol (“Penta”) production
facility to replace operations in Matamoros, Mexico and Tuscaloosa,
Alabama when they cease production, estimated to be at the end of
2021.
“We have been acutely aware of Penta supply
issues for quite some time and have been taking active steps to be
ready to produce preservative under our own direction. Our team has
capitalized on our exceptional internal expertise and has been
working diligently both in R&D and testing so that we can be in
a position to seek regulatory approvals and licenses and have the
necessary infrastructure ready on time for the changes that are
coming. Additionally, our robust network is well positioned to
offer alternative preservatives that are suitable and approved for
the treatment of wood utility poles throughout North America. That,
in addition to our ample strategic reserve of Penta and assurances
from our supplier of continued supply for the next 25 months,
further solidifies our intention of continuing to grow our position
in the utility pole market by supplying our customers with safe,
sound and reliable products,” stated Eric Vachon, President and
Chief Executive Officer.
ABOUT STELLA-JONESStella-Jones Inc. (TSX: SJ)
is a leading producer and marketer of pressure treated wood
products. The Company supplies North America’s railroad operators
with railway ties and timbers, and the continent’s electrical
utilities and telecommunication companies with utility poles.
Stella-Jones also manufactures and distributes residential lumber
and accessories to retailers for outdoor applications, as well as
industrial products for construction and marine applications. The
Company’s common shares are listed on the Toronto Stock
Exchange.
Except for historical information provided
herein, this press release may contain information and statements
of a forward-looking nature concerning the future performance of
the Company. These statements are based on suppositions and
uncertainties as well as on management's best possible evaluation
of future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in
customer demand for the Company's products and services, the impact
of price pressures exerted by competitors, the ability of the
Company to raise the capital required for acquisitions, and general
market trends or economic changes. As a result, readers are advised
that actual results may differ from expected results.
Source: |
Stella-Jones Inc. |
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Contacts: |
Éric Vachon, CPA,
CA |
Pierre Boucher, CPA,
CMA |
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President and Chief Executive
Officer Stella-Jones |
Jennifer McCaughey, CFA
MaisonBrison Communications |
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Tel.: (514) 940-3903 |
Tel.: (514) 731-0000 |
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evachon@stella-jones.com |
pierre@maisonbrison.com |
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jennifer@maisonbrison.com |
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