Pioneer Announces January Production Losses
21 1월 2005 - 10:10AM
PR Newswire (US)
Pioneer Announces January Production Losses HOUSTON, Jan. 20
/PRNewswire-FirstCall/ -- Pioneer Companies, Inc. (OTC:PONR)
(BULLETIN BOARD: PONR) announced today that the ability of its U.S.
operating subsidiary, Pioneer Americas LLC, to provide products to
certain of its customers in the western United States has been
disrupted by rail transportation service difficulties. It is not
yet clear when the service difficulties will be resolved, but it is
anticipated that before they are resolved Pioneer will lose the
production of chlorine, caustic soda, hydrochloric acid and bleach
at its chlor-alkali plant in Henderson, Nevada, and the production
of bleach and the repackaging of chlorine at its smaller plants in
Santa Fe Springs and Tracy, California and Tacoma, Washington. The
smaller plants depend on the supply of chlorine and caustic soda
from the Henderson plant for their own operations. Recent severe
winter storms in the West have washed out portions of the main
lines of the Union Pacific Railroad at various locations. Pioneer
depends on the railroad for the transportation of a significant
amount of its products to its customers and to the plants in
California and Washington, and for the transportation of raw
materials. At the current time there are significant delays in
railcar movements, leading to delays for outbound cars of product
and inbound shipments of raw materials, as well as delays in the
necessary return of empty cars. In addition, the chlor-alkali plant
at Becancour, Quebec that is operated by Pioneer's Canadian
operating subsidiary, PCI Chemicals Canada Company, has also
experienced a lower operating rate. The rate reduction occurred
because of a disruption in the return of empty railcars to
Becancour, beginning in late December and continuing into January.
That problem should be resolved by the end of this month. Michael
Y. McGovern, Pioneer's President and Chief Executive Officer,
stated, "We supply many municipalities throughout the west with
chemicals used in the purification of drinking water and the
treatment of wastewater. We take our part in protecting the health
of the public and the environment very seriously, and we are
working with the railroad to find ways of maintaining product
deliveries to those customers as a priority. At this time we don't
know the extent to which we will have to reduce deliveries to any
of our customers, but we expect that there will be delivery
curtailments. Deliveries to municipalities will be the last to be
curtailed." "As for the problems in the east, we do not have any
critical issues with regard to providing products to our customers
that are served by the Becancour plant," McGovern continued.
"However, we believe that our January production losses at the
Henderson and Becancour plants will be approximately 9,500 ECUs."
Pioneer, based in Houston, manufactures chlorine, caustic soda,
bleach, hydrochloric acid and related products used in a variety of
applications, including water treatment, plastics, pulp and paper,
detergents, agricultural chemicals, pharmaceuticals and medical
disinfectants. Pioneer owns and operates four chlor-alkali plants
and several downstream manufacturing facilities in North America.
DATASOURCE: Pioneer Companies, Inc. CONTACT: Gary Pittman of
Pioneer Companies, Inc., +1-713-570-3200 Web site:
http://www.piona.com/
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